YPulse has long said that Gen Z and Millennials view luxury differently than previous gens, and this redefinition of what luxury means is having undeniable impacts on the industry. While some headlines claimed (and many hoped) these young consumers would be the saviors of the luxury market, the reality is that the personal luxury goods market is shrinking. Though some luxury brands are sustaining sales, others are experiencing a decline partly due to rising prices coupled with social media discourse about the value for it, discouraging middle-class buyers. Now, many young people are looking elsewhere to sprinkle luxury into their lives, spending on products and experiences that bring them enjoyment rather than purely signaling status. Inflation and the rising costs of established brands have also pushed many young consumers toward alternatives like high-quality dupes and secondhand markets, which offer them budget-friendly options for a range of luxury goods. And as more Gen Z shoppers come into their purchasing power, luxury brands will need to adapt to these young consumers’...
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