Generations Z and Alpha are moving beyond being mere consumers of new clothing; they are actively changing how fashion is perceived, how purchases are made, and which brands are chosen. Thanks to the influence of social media, emerging trends, content creators, and artificial intelligence (AI), their purchasing journey has become significantly different from before.
According to the report 'How Gen Z and Alpha are reshaping the fashion industry' by Boston Consulting Group (BCG) and Women’s Wear Daily (WWD), Gen Z and Alpha consumers aged 28 and under could account for 40% of US fashion spending over the next decade. The report was based on an analysis of responses from over 9,000 consumers and 50,000 social media discussions.
The new BCG and WWD report highlights how youth are changing the fashion world through the influence of AI, social media, and a redefinition of brand loyalty.
According to BCG, these young people are not solely influenced by brand names, as was the case with previous generations. They are more inclined towards experimentation and are willing to try new products and trends. Their purchasing process is oriented more toward trends and the product itself, rather than the brand. Thus, the old identity or heritage of a brand is no longer the sole determinant of its value.
Modern youth use social media not only for entertainment but also for discovering new products and brands. The report indicates that the likelihood of young consumers finding a brand through social media is 1.5 times higher than for older generations. Furthermore, the role of influencers and digital content creators is growing, whom young people value equally with celebrities.
Interestingly, 22% of young people receive brand information from micro-influencers with fewer than 100,000 followers, while 27% find brands through celebrities. Moreover, influencer content influences purchasing decisions for Gen Z and Alpha, and they are twice as likely as previous generations to cite influencer content as the reason for making a purchase.
The role of AI is also growing in the fashion retail sector. Although millennials and older generations generally use AI more often than Gen Z and Alpha, the situation changes when it comes specifically to buying fashion apparel. 41% of Gen Z and Alpha members use AI to purchase fashion items, compared to 34% among other generations. This means the probability of using AI for shopping in the fashion segment is higher among Gen Z and Alpha.
The report states that cultural significance, authenticity, and the energy of content creators are extremely important to Gen Z and Alpha. They evaluate not only the age or size of a brand but also how well it aligns with contemporary culture and their personal preferences. Therefore, the future of fashion is determined not only by the brands themselves; Gen Z and Alpha are changing the methods of searching for, selecting, and acquiring fashion, and social media and AI are accelerating these changes.