The luxury market is undergoing a radical transformation as it adapts to the growing spending power of Gen Z. Along with Millennials, these consumers accounted “for the entire growth of the luxury market in 2022,” according to Bain & Company, and are predicted to represent 70% of luxury spending by 2025.
The challenge for luxury brands is that Gen has increasingly divergent value systems from previous generations of consumers. To attract and keep them engaged, luxury brands are rapidly having to move beyond the traditional notions of luxury–such as status, legacy, prestige, and heritage–towards a new set of values: inclusivity, sustainability, transparency, technology, and circular innovation.
