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Fashion Brands

How Gen Z is changing the fashion business

May 23, 2022
Leigh B. Maynard
Read Time : 5 Minutes

When people think about Gen Z and fashion, the first thing that comes to mind is lots of glitter and very vibrant colors, but this generation is also working to buy and sell from environmental and social conscious brands.

If you go to a mall right now, you’ll probably see stores filled with clothes of different vibrant colors, and pieces of clothing that imitate Instagram hauls by influencers. Everything is ready for you to wear and post on social media. But that’s not the way Gen Z is changing fashion, they’re changing the business surrounding it.

This new generation is very concerned about social and environmental causes, and their beliefs affect their shopping habits, where they want to buy from brands that have similar values to them.

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You might find interesting: How Gen Zers are changing the way we use social media

Taking a stand as a brand

Gen Z is different from Millennials, because they think that companies have a responsibility to the environment but also to social issues. This can be seen with the raise of #MeToo, #BlackLivesMatter, and #TimesUp, and how they are part of our everyday language and experience since the last couple of years.

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But other than just taking a stand, Gen Z and Millennial consumers are critical, with them representing around $350 billion in spending power in the United States alone (with approximately $150 billion of that being spent by Gen Z); and with Gen Z being accountable for 40% of global consumers in 2020.

With this, consumers are using their purchasing decisions to incorporate and sustain their values and beliefs of the world in everything they do.

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Gen Z as brand owners

With the older group of Gen Z being in their early 20′s, there’s a lot of them working to have their own fashion brands, with their core values being sustainability, collaboration, and individuality.

Their brands are starting on platforms like Depop, Instagram, and TikTok, where they share their products but also creating a community with their followers. But this means big business, only on Depop the sellers have turned over $650 million in secondhand and own brand items in 2020, according to the platform.

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These brands have been created to fill perceived gaps the owners have as consumers, and to serve those who are like them.

But consumers themselves have also changed to be more sustainable, like repairing their clothes, reducing fashion consumption, or recycling more.

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The importance of community

Social media is vitally important to Gen Z business, with it being the way they sell their products, but because with it they build a relatable and authentic persona that eventually becomes the base of a brand identity. Because of this, very little of them using paid advertising to grow their brand.

The mix of brand imagery and previews with personal photos and behind-the-scenes business content make the consumers think of the people that work in the company, instead of feeling like they’re constantly being sold something.

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But… there’s always a but

This movement is much more pronounced in Western markets, and in certain territories it’s not appropriate for brands to align or even talk about certain issues.

While consumers in the Western markets do tend to dominate the movement toward environmental and social conscience, it’s expected that this will change with other markets increasing their levels of commitment.

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There’s also risks associated with big brands aligning with certain issues, like consumers not being able to know if a company is doing it as a gimmick to sell more or if they have a genuine purpose that aligns with the values of the organizations and themselves as consumers.

Despite this, large brands, especially luxury brands, are willing to have controversy as an effect of expressing their beliefs as a company, because they’re hoping to attract a younger consumer group with similar values that are willing to trade up.

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It’s hard to know where the fashion industry is going, but one thing is certain: consumer loyalty is rewarding for any company, and retaining customers is vital. Every brand has to do it in a way that is honest for them and their consumers.

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