Why has Generation Z become the most strategic issue in the luxury sector?
In just a few years, Generation Z has gone from being considered "tomorrow's target" to an immediate driver of growth and transformation. Figures circulate in all sector studies, and one signal keeps coming up: this generation's luxury spending has increased sixfold in six years.
Behind this spectacular increase, it's not just a matter of volume. It's a change in the mechanisms of desire, in how a house builds its value, and in where the purchase decision is made.
book Generation Z & Luxury , published in thefall of 2024, is situated within this context of upheaval. It offers an in-depth look at the behaviors of a cohort that grew up with smartphones, algorithms, influence, and a more fluid relationship with identity.
A long format is necessary because the challenge is not to " please young people", but to understand how their uses reconfigure historical pillars: scarcity, price, heritage, retail, service, image and cultural legitimacy.
What Gen Z is changing in desirability: from vertical myth to participatory narrative
Luxury has long relied on a vertical desirability: a brand spoke, the public watched, and the object embodied a distance. Generation Z doesn't reject this distance, but it changes its conditions. Desirability is now also created " horizontally," in communities, comments, creator videos, short formats , and real-time conversations.
This shift doesn't erase the aura of houses like Chanel, Dior, Louis Vuitton , or Hermès. Rather, it imposes a new grammar: aura alone is no longer enough if it isn't translated into tangible evidence, behind-the-scenes glimpses, and shareable experiences. The leatherworker's expertise, the tailor's skill, the jeweler's precision , or the choice of full-grain leather become narrative elements. Where a corporate film might have been a pinnacle, Gen Z expects a series of micro-evidence: a material, a finish, a repair, a service, transparency about the origin or the workshop.
This logic favors brands capable of holding two truths simultaneously: preserving mystery while offering glimpses into the past. A campaign can remain captivating, but the brand must accept that the conversation will continue beyond its own channels, using codes that don't entirely belong to it.
Product and design: the era of “signals” and the return of attention to detail
Generation Z is sometimes associated with seeking out logos or " Instagrammable " pieces . In reality, they operate through multiple signals. The logo is just one signal among many: it can be proudly displayed, satirized, or even avoided. The same clientele can oscillate between ostentation and quiet luxury , depending on the social context, the moment, the platform , or the self-image they choose to project.
For fashion houses, this means developing a range capable of responding to diverse motivations without sacrificing coherence. A bold, distinctive piece coexists with a more understated one where luxury is evident in the cut, the cashmere, the feel of the fabric, the density of the cotton, the quality of a horn button, the precision of a setting, or the depth of a fragrance trail. In jewelry, recycled gold, traceable diamonds, or colored gemstones with a clear history have become tangible selling points, going beyond mere general promises.
Gen Z also values hybridization: fashion and performance, couture and sportswear, tailoring and comfort. Collaborations and capsule collections are not just a marketing tool; they are becoming a testing ground for usage. But the risk is well-known: bombarding consumers with signals to the point of overwhelming them. The product must remain the focus, otherwise innovation becomes mere noise.
Price is no longer just a filter: the rise of an acknowledged “pricing ladder”
Luxury has always operated within a pricing structure. What's changing is how it's perceived and shared. Generation Z constantly compares, archives, discusses, and contextualizes. Price becomes a language: it signals access, rarity, resale value, but also a perceived sense of fairness. Consumers aren't asking for " cheap " luxury; they're asking for " justifiable " luxury .
This is where a pricing ladder strategy becomes crucial: creating consistent entry points without compromising the core brand. In premium beauty, this involves discovery formats, routines, diagnostic services, refills, and a sensory experience aligned with the brand message.
In leather goods, this can mean a small, well-designed accessory rather than a " loss leader " that damages the brand's image. In watchmaking or jewelry, it can mean a line of more refined pieces, or a focus on personalization, provided that the quality remains impeccable.
Gen Z accepts high prices when they understand what they're paying for: time, craftsmanship, materials, guarantees, repairs, service, and carefully curated scarcity. Conversely, they reject what appears to be logo inflation. The challenge for brands from 2026 onward will be to make value clear without transforming luxury into a mere technical argument.
Resale and second-hand: a channel of desire, not simply a substitute market
Secondhand is no longer a niche market. For a segment of Generation Z, it's a natural gateway to luxury, a way to access iconic pieces, hunt down a sold-out, or create a more personal style. Vestiaire Collective, The RealReal, StockX, and other platforms have transformed reselling into an experience, complete with its own codes, rankings, authentications, and narratives.
For luxury brands, resale is both an opportunity and a test. An opportunity because it reinforces the notion of lasting value and because it reaches younger customers before their first in-store purchase. A test because it reveals the true durability of the products: stitching, leather, patina, resistance, and repairability. Luxury that lasts wins; luxury that wears out quickly loses twice over, on both the primary and secondary markets.
By 2026, the most advanced brands will treat secondhand goods as a managed territory, with take-back programs, restoration workshops, digital certificates, and a customer relationship that acknowledges circularity without inducing guilt. The goal is not to moralize, but to secure and amplify brand value throughout the entire lifecycle.
Social commerce, influence, and algorithms: the showcase has shifted
For Generation Z, product discovery is often algorithmic. TikTok, Instagram, YouTube, but also live formats and social commerce are transforming how a product is mentally tested. A fifteen-second video can spark a desire faster than a magazine page because it shows the material in motion, the object being worn, its actual use, the audience's reaction, and because it becomes part of a conversation.
Influence, in this context, isn't limited to a single celebrity. It's fragmented among niche creators, experts, stylists, perfume, watch collectors, makeup artists, charismatic salespeople, and artisans capable of explaining their craft. Brands must therefore cultivate an ecosystem of credibility rather than a single face. The challenge isn't to produce more content, but to produce content that is accurate, consistent, and authentic enough to withstand constant scrutiny.
This shift introduces an additional requirement: consistency between the digital promise and the physical experience. If the algorithm brings a customer into the store, the store must live up to the imagined experience created; otherwise, the dissonance will result in negative publicity, or more simply, indifference.
Drops, collaborations, and scarcity: when temporality becomes a branding tool
Generation Z is used to a rhythmic release schedule: drops, limited editions, collaborations, pre-orders, and carefully orchestrated anticipation. Luxury has long understood the art of scarcity, but " digital " scarcity manifests itself differently: it accelerates, is discussed, and is compared to other sectors, from sneakers to gaming.
Used intelligently, this timing can amplify desire without damaging heritage. A drop can serve to test a color, a material, a format, or to celebrate craftsmanship. A collaboration can bring a creative perspective, a cultural dialogue, a bridge to a community. But luxury cannot simply borrow streetwear codes. It must translate them into its own language, otherwise the strategy becomes a race for attention.
From 2026 onwards, maturity will depend on the ability to articulate rhythm and permanence: keeping an iconic foundation available, while creating rare moments that have meaning, and that do not exhaust the public with a succession of interchangeable events.
Sustainability, traceability and “CSR backlash”: proof rather than posturing
Gen Z readily associates luxury with higher standards: product durability, ethical manufacturing practices, responsible materials, and traceability. But they are equally wary of overly polished rhetoric. The risk for brands is twofold: being accused of inaction or greenwashing. Between these two extremes, there is a path: providing evidence.
Proof can take the form of a visible repair policy, a refurbishment service, increasing transparency regarding materials, certification, traceability of leathers or stones, and a genuine reduction in certain practices. It can also be cultural: valuing craftsmanship, protecting workshops, passing on skills, and investing in training. When a house demonstrates how it cuts a pattern, how it polishes metal, or how it composes a perfume, it reminds us that luxury is first and foremost an industry of long-term commitment.
The distinction is crucial: Generation Z doesn't demand immediate perfection; it demands credible direction and a clear path forward. Conversely, an over-segmentation of "CSR" products that transforms every item into a manifesto can lead to fatigue. Luxury doesn't need to become moralistic; it needs to become consistent.
Cultural deception and the quest for authenticity: a useful crisis for clarifying value
The "dupe culture"—low-priced, inspired products marketed as alternatives—has gained new momentum on social media. This phenomenon doesn't necessarily mean that Gen Z disdains luxury ; rather, it reveals a tension between aspiration and accessibility. Some consumers play with the codes, experiment with a silhouette, and adopt an aesthetic without being able or willing to pay for the original.
For fashion houses, the response cannot be solely legal or indignant. The culture of duping forces us to clarify what makes the original irreplaceable: the material, the cut, the drape, the precision of the proportions, the quality of the construction, the durability, the service, the repairability, the resale value, the symbolic weight, the history. It also reminds us that branding without substance is vulnerable.
Paradoxically, the culture of duping can strengthen established brands: the more the imitation circulates, the more the original must become obvious again. This implies focusing less on the "trend" and more on the "raison d'être" of an object, even in highly visible categories like bags, sneakers, denim, or viral cosmetics.
Retail and experience: the store as a medium, service as a signature
Digital and retail are often seen as opposing forces . For Generation Z , the two complement each other: they discover online, validate in real life, and then share. The store is therefore no longer just a point of sale; it becomes a media platform, a setting, a learning space, sometimes a refuge. It must be able to welcome a highly informed customer, sometimes intimidated, sometimes in a hurry, and often accompanied by their own references seen online.
Sales staff are becoming central. Gen Z appreciates expertise, but not condescension. They value advice, personalization, the ability to explain a material, suggest a size, adjust a bracelet, care for leather, choose a foundation, layer a fragrance, or explain the difference between one setting and another. Service is content, just like a video.
By 2026 , the companies that will succeed will be those that streamline the customer journey: easy appointments, visible inventory , elegant click-and-collect , fast after-sales service, accessible repairs, and intelligent CRM. Customers don't want to be tracked; they want to be recognized, with tact. Data is only valuable if it improves the experience without making it more cumbersome.
What homes need to change by 2026: concrete decisions and pitfalls to avoid
Eric Briones' critical analysis of the trends highlighted leads to a simple idea: Generation Z is not a marketing segment, it's a catalyst. It is accelerating transformations that will affect the entire luxury sector, including older customers. From 2026 onward, brands will need to prioritize projects where consistency takes precedence over mere hype.
The first challenge is aligningproduct, message, and action. If a company speaks of excellence, it must demonstrate excellence, from the choice of materials to repairs. If it speaks of sustainability, it must facilitate sustainability through service, parts availability, and maintenance.
The second challenge is managing desirability in a world of algorithms: accepting conversation, training credible spokespeople, and building narratives that can be developed without being diluted.
The third area of focus is theproduct architecture : a clear move upmarket, with entry-level products that are true luxury products, and not compromises.
The fourth area of focus is managed circularity : authentication, take-back, restoration, certification, so that second-hand goods become a controlled extension of the brand.
The fifth area of focus, finally, is cultural : avoid over-segmentation and caricature, do not confuse youth with restlessness, and remember that the modernity of luxury is measured by its ability to last, to be passed on and to remain desirable without betraying itself.
