The 100-year-old Italian house is, by far, the most popular luxury brand on TikTok — meaning that Gucci’s product-focused marketing on social-media platforms (specifically TikTok) is resonating with younger shoppers.
Data from the Vogue Business Index (which uses more than 200 individual metrics and exclusive insights from 7,000 global luxury consumers) also shows a generational power shift in luxury spending. The youngest shoppers (gen Z) have the greatest urge to spend, closely matching millennials armed with higher disposable incomes. Both groups expect to increase their luxury spending in the near future, in contrast to other age brackets.
Your topline? The percentage of gen-Z luxury shoppers who plan to amp up their spending on luxury fashion has risen from 11 per cent in late 2020 to 19 per cent, the highest share across all age groups. When it comes to geography, gen-Z consumers in the US, UK and South Korea are leading the way, with 38 per cent expecting their spend on luxury fashion to increase, nearly 2.5 times the global average. The overall industry expectation is that this age range will be driving a fifth of luxury purchases by 2025.
Gucci isn’t the only brand holding our interest. Their Aria collection collaborateur Balenciaga, Alexander McQueen and Givenchy are also seeing higher awareness among gen-Z consumers, relative to their score among all luxury shoppers. Dior, meanwhile, is the leader across digital metrics and most social platforms, particularly on Chinese messaging and social media app WeChat. Burberry maintains a leadership position by continuing to push the boundaries of the retail experience through social and digitally enhanced pop-up stores, and Coach is now top-of-mind for an increased number of gen-Z consumers and continues to grow in China.
Gen Z’s power over the luxury sector goes far beyond the point of sale, however. Together with millennials, we’re more likely to consider diversity and inclusion practices as mandatory and will adhere to that value system when investing in a luxury purchase.
For luxury brands, the stakes are also high when it comes to picking the right social channel — ie the platform gen Z prefers. Be that video-sharing platforms Douyin, Kuaishou and Bilibili in China, or TikTok in the US.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Fashion News Click Here
