You’ve probably read about the Great Wealth Transfer, but what will it mean for fashion and our stores?
The $84 trillion that is predicted to change hands over the next 20 years will go to generations with different priorities and worldviews than some of our older customers.
So, let’s look at the values, and fashion leanings, of these younger generations.
The generation that will receive the lion’s share of the wealth from their Boomer parents and grandparents is Generation Z. They are currently aged from 12 to 27 years old, and they are predicted to be both the largest and richest generation in history.
By 2030, Nielsen predicts that Gen Z will contribute more wealthy people to every region of the world. They are multicultural, health-conscious, and prefer clean beauty.
In terms of fashion, they currently prefer sustainable choices, ‘90s throwback looks, and oversized, gender fluid styles.
Millennials, aged 28 to 43, will also get a slice of the pie, but not as much. They tend to value experiences over possessions, but when they do shop, they feel most comfortable online.
Millennials have been given a bad rap for their fashion choices recently (skinny jeans and no-show socks), mainly because Gen Z is defining style by what is cool on TikTok.
As both generations mature, our retailers have an opportunity to tap into these wealthy consumers.
Here are some ways fashion retailers can prepare:
- Embrace Sustainability and Ethical Practices
Millennials and Gen Z are highly conscious of environmental and ethical issues. They tend to prefer brands that prioritize sustainable fashion, eco-friendly materials, and fair labor practices.
- Focus on Personalization and Customization
Younger generations expect personalized shopping experiences. Retailers can invest in data analytics and artificial intelligence (AI) to offer product recommendations tailored to individual preferences. Offering customizable fashion products where customers can modify designs, colors, and fits gives them a unique, personalized experience that resonates with Gen Z’s desire for self-expression.
- Leverage Digital and Omnichannel Strategies
Millennials and Gen Z are digital natives. Retailers must focus on strengthening their e-commerce platforms, ensuring a seamless user experience, and investing in social commerce.
- Invest in Social Media and Influencer Marketing
Gen Z and millennials spend considerable time on platforms like Instagram, TikTok, and YouTube. Retailers should build strong social media strategies that focus on engaging content, storytelling, and visual appeal.
- Invest in Experiences
Younger generations value experiences over material goods. Fashion retailers can host events, create in-store experiences, and offer virtual experiences to build a deeper connection with customers.
- Champion Diversity and Inclusivity
Millennials and Gen Z want to see diverse models in terms of race, gender, size, and ability.
Offering a wider range of sizes, gender-neutral clothing, and promoting body positivity can align with the values of younger generations.
- Adapt to the Evolving Concept of Luxury
For many younger consumers, luxury is less about logos and more about craftsmanship, sustainability, and uniqueness. Retailers should align their luxury offerings with these evolving values.
By staying attuned to the values and behaviors of younger generations, fashion retailers can capture their attention and loyalty during the Great Wealth Transfer
