Gen Z, Gen Alpha to drive 40% of fashion spending by 2035
Younger consumers are reshaping fashion through AI, social influence, and new definitions of brand loyalty.
That’s according to a new report from Boston Consulting Group in collaboration with Women's Wear Daily, which finds that Gen Z and Gen Alpha are projected to account for 40% of fashion spending within the next decade. These younger generations spend 7% more of their disposable income than previous generations on clothing and shoes.
Fashion also serves as the entry point to AI for many young consumers, the report said. Some 41% of Gen Z and Gen Alpha using AI weekly to shop for fashion items compared to 34% of older generations.
Social Media/Influencers
The report, “How Gen Z and Gen Alpha Are Rewiring the Fashion Industry, also revealed that consumers are 1.5 times as likely as older generations to discover brands through social media. They also view digital creators and influencers as having the same status as celebrities.
Micro-influencers, who have fewer than 100,000 followers, are nearly as influential as celebrities with over 1 million followers. Twenty-two percent of young consumers use micro-influencers for brand discovery, and 27% use celebrities for this purpose.
Additionally, Gen Z and Gen Alpha are 1.3 times as likely as prior generations to cite high follower counts or social media engagement as a driver behind brand status, and 2.0 times as likely to cite influencer content as a reason for conversion.
In other findings Gen Z and Gen Alpha are proving to be product-loyal, not brand-loyal. They are 20 percentage points less likely than older generations to buy the same brand consistently, instead seeking out distinctive products that are unique and emotionally resonant. Also, nearly 50% of young consumers expect personalized attention and tailored product recommendations from brands.
"Younger consumers represent one of the most powerful spending forces in fashion, yet they are also the hardest to win and keep," says Mrin Nayak, a BCG managing director and partner, and a co-author of the report. "Their shopping patterns are fluid and unpredictable, driven by a search for brands that reflect their values and identities while maintaining cultural relevance. Winning them over represents a defining opportunity for brands to build long-term loyalty.”
The report explores cross-generational preferences and expectations, based on a survey of more than 9,000 US consumers and analysis of over 50,000 social media posts.
