Born between 1997 and 2012, Generation Z—often referred to as Centennials or iGen—is the first cohort to grow up fully immersed in digital media and connectivity. With smartphones and screens as a constant backdrop in their lives, Gen Z has developed a distinct set of values that influence their consumer habits. They are environmentally aware, deeply value inclusivity, and display a level of political consciousness far beyond that of previous generations. Their outlook has been shaped by the pressing concerns of climate change, the isolation of pandemic lockdowns, and ongoing economic uncertainty.
As of 2020, Gen Z represented 40 percent of global consumers and currently comprises a quarter of the Asia-Pacific population. Their global purchasing power is expected to rise to $360 billion by 2030. With such influence, this generation is pushing fashion retailers and brands to overhaul their strategies to remain relevant in a shifting market landscape. Engaging Gen Z requires a thoughtful approach that aligns with their evolving values and preferences.
In terms of fashion, Gen Z is transforming how people shop for clothes. They crave change and are not afraid to challenge traditional norms. Their choices are guided by a blend of community, craftsmanship, innovation, and modern aesthetics. Personalisation is key for them. They are eager to invest in clothing that reflects their individuality, often seeking customised or monogrammed designs. Their commitment to uniqueness is also mirrored in their embrace of circular fashion, evident in their fondness for thrifting and vintage pieces. As a result, the fashion resale market has surged, driven largely by Gen Z influencers and resellers. It’s common to find Gen Z wardrobes filled with a mix of low-cost fast fashion and carefully curated vintage garments.
Their fashion preferences include streetwear, gender-fluid clothing, and athleisure. Streetwear, influenced by 1990s and early 2000s hip-hop and rave cultures, features oversized fits and bold visuals. Nostalgia plays a significant role, as Gen Z embraces retro styles and revisits fashion from past decades. They also reject rigid gender norms, championing inclusive and expressive styles. Gender-fluid fashion serves as a platform for authenticity and individual expression, making Gen Z the face of this movement. Comfort is equally important, with athleisure wear becoming a wardrobe staple. Blending gym-ready practicality with everyday style, this preference reflects Gen Z’s emphasis on functionality and versatility.
Despite their influence, Gen Z consumers are not easily won over. They are highly conscious of their choices and form brand loyalties only when expectations are met. A single negative experience can prompt them to switch retailers, as noted by a study revealing that 57 percent would walk away after just one unsatisfactory encounter. Shopping is seen not merely as a transaction but as an experience. This mindset pushes brands to create compelling first impressions and maintain consistent interaction to meet Gen Z’s high standards.
Gen Z’s shopping habits are deeply rooted in their digital upbringing. According to the 2023 Cotton Council International and Cotton Incorporated’s Global Lifestyle Monitor Survey, 73 percent prefer browsing online. When it comes to repeat purchases, 67 percent choose e-commerce over physical stores, yet 77 percent still appreciate shopping in person to inspect items firsthand. While 78 percent want to ensure a good fit, 70 percent prefer trying clothes on before buying. Interestingly, 54 percent like to feel the fabric, and 47 percent are driven by the absence of shipping costs. Others enjoy the physical experience (36 percent) or seek instant gratification (34 percent).
The internet and technology have radically transformed the retail space, tailoring it to Gen Z’s needs. Like the shift from owning DVDs to streaming content, Gen Z is embracing fashion rental services and prioritising access over ownership. Mobile payments, user-friendly apps, and streamlined online transactions are now expectations. Some brands have already succeeded by launching online-first, capitalising on the constant digital presence of this generation. With advertising seamlessly integrated into their digital navigation, Gen Z interacts with brands throughout their entire buying journey.
Technology further enhances their shopping preferences. Platforms like TikTok and Instagram are no longer just for outfit inspiration; they are trend incubators where new brands find exposure. Gen Z has enthusiastically adopted augmented and virtual reality, which lets them virtually try on clothes and engage in immersive retail experiences. This integration of tech into shopping has largely met their expectations, shaping the future of e-commerce around Gen Z’s preferences.
The concept of digital fashion is another frontier where Gen Z is making waves. Morgan Stanley estimates this market—featuring garments and accessories for virtual avatars—will reach $50 billion by 2030. In this space, clothing can morph colors or shift materials dynamically, enabling users to express their personalities online. Gen Z sees digital fashion not just as play, but as self-representation. Their avatars are seen as extensions of themselves, mirroring their values and styles.
Where Web2 saw consumers buying clothes for themselves, Web3 allows them to shop for their digital personas. NFTs have become a gateway to merging physical and virtual fashion. For instance, buying a pair of sneakers may also unlock a digital twin that avatars can wear. This integration of virtual and real-life style has deep appeal for Gen Z, who are drawn to the limitless creativity digital fashion offers.
Roblox, an online gaming and creation platform, provides a revealing snapshot of Gen Z’s engagement with digital fashion. Users aged 17 to 24 represent the fastest-growing demographic on the platform. In 2023, the platform recorded 165 billion avatar updates and 1.65 billion digital fashion purchases. Surveys found that more than half of Gen Z users are willing to spend up to $10 monthly on avatar styling, while 19 percent would spend up to $20 and 18 percent between $50 and $100. Around 70 percent of users prioritize diverse customization options, including skin tones, body sizes, and hair textures. Interestingly, 48 percent are open to trying virtual outfits they wouldn’t wear in real life. The data also shows that 56 percent prioritize their avatar’s appearance over their own, and 84 percent believe digital fashion holds significant value. Nearly half prefer wearing virtual garments from well-known brands, and a striking 84 percent are likely to try a real-world brand after testing it virtually.
Fashion brands must now align their strategies with the values that matter most to Gen Z: sustainability, inclusivity, and tech-savviness. Successfully doing so will not only secure the loyalty of this influential group but also position brands to thrive in a dynamic and competitive market. To achieve this, companies need to build stronger connections with Gen Z and foster long-term engagement through meaningful experiences.
One of the most effective tools at a brand’s disposal is social media. Platforms like TikTok, Instagram, YouTube, and Snapchat are deeply embedded in Gen Z’s lifestyle and influence everything from hobbies to shopping habits. Brands must create interactive content, such as user-generated posts, contests, and style challenges, to captivate this audience. Offering early access to collections, exclusive deals, and unique brand experiences can further cultivate loyalty. It is crucial for fashion players to find their niche within the digital space, crafting content that reflects Gen Z’s values and aesthetics.
With most of Gen Z owning smartphones, the influence of social media and content creators cannot be overstated. Partnering with influencers who genuinely resonate with this demographic can provide powerful endorsements and drive engagement. These collaborations not only boost brand visibility but also humanise the brand, making it more relatable and authentic in the eyes of Gen Z.
Fashion retailers and brands must understand that this generation is rewriting the rules. Gen Z expects fashion to be sustainable, technology-driven, and deeply personal. By embracing these changes and innovating accordingly, brands can stay ahead of the curve and win over a generation that is not just changing fashion—but defining its future.
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