Gen Z is often called the &ldquo;stay-at-home generation,&rdquo; but many of them have significant financial resources and are more confident than previous generations about their ability to build wealth. While they still pursue the same lifestyle as their predecessors, Gen Z defines it in a very unique way

While millennials are obsessed with furnishing their homes , pampering their pets, or getting Botox treatments, Gen Z is willing to spend big on premium brands and luxury experiences that reflect their personalities. Join L&#39;OFFICIEL to discover how Gen Z is expressing its spending power and shaping new luxury standards.

Willing to spend big on luxury trips

Today, many young people prioritize planning expensive trips, and many even convince their wealthy parents to fund their luxury trips. For those who still travel with their families, the decisions are often made by them, from choosing the destination to the activities they experience, all of which are heavily influenced by popular trends on social media.

Julia Carter, founder of luxury travel company Craft Travel, once shared with Business Insider that the thing Gen Z cares about most when traveling is where to stay. “You can go to London or Paris, but if you don’t have the so-called ‘million dollar’ photos, how can you prove that you enjoyed your trip? The hotel is the proof,” Carter said. Previously, Business Insider also reported that Gen Z is especially fond of luxury package tours. “With the power of social media, many people are motivated to share carefully curated content, especially experiences at luxury resorts,” said Malley Goodwin, senior travel consultant at Embark Beyond.

Spending on brands and experiences reflects personal values

Gen Zers with means are less likely to indulge in materialism when it comes to spending money. In the travel sector, a representative of Black Tomato, a luxury travel company in the UK, said that younger customers are increasingly craving “authentic and interactive” experiences, with a focus on “sustainability, wellness and cultural immersion”.

Gen Z’s values-based spending is spreading globally, not just in travel but in many other areas, including retail. In China – home to a large population of ultra-wealthy individuals – young people are increasingly ditching luxury brands with flashy logos to invest in products and experiences that reflect their values, such as environmental protection and personal development. &quot;At the core of this trend is a desire for a slower, more conscious lifestyle, along with a new mindset — viewing health and longevity as the ultimate measure of luxury,&quot; Jien Goh, a trend forecaster at WGSN, told Business Insider .

Look for secondhand fashion instead of buying new

Gen Z is looking at vintage fashion as a small investment. Rather than buying brand new, this generation is prioritising timeless pieces. Claudia D'Arpizio, senior partner and global head of fashion and luxury at Bain, says that the majority of Gen Z is looking for designer goods on resale platforms like The RealReal rather than buying new.
In addition to sustainability, Gen Z is also attracted to the uniqueness of the secondhand market &ndash; where they can hunt for rare vintage items and even make a profit from buying and reselling them. &ldquo;The gamification and entertainment factor is also something that this generation enjoys,&rdquo; she said.

Focus on investing in a private kitchen

In the US, Gen Z is owning homes at a higher rate than previous generations. According to a 2023 Redfin study, 30% of 25-year-olds in this generation will own their own homes by 2022, higher than Millennials (28%) and Gen X (27%) at the same age. For them, the kitchen is not just a necessity but also a reflection of their lifestyle. A McKinsey survey (published in December) found that food – along with beauty and personal care – is among the top three spending categories for Gen Z, behind only restaurants and fashion.

This generation is willing to invest in high-end snacks, drinks and condiments. Some even share their luxury purchases at famous chains such as Erewhon – a favorite destination of many Hollywood stars – on social media. According to Elizabeth Tan, senior cultural strategist at WGSN Insight, food and dining experiences are becoming a way for younger generations to express “their values and cultural identity.”

Fragrance becomes a symbol of status

Despite the impact of the economic downturn on the luxury industry, especially the drop in demand in China, Claudia D&#39;Arpizio from Bain says perfume is one of the few categories that has held up. Fragrance’s appeal hasn’t waned, thanks in large part to its popularity with younger generations. While Gen Zers are more cautious about big-ticket items like handbags or coats, they’re still willing to indulge in small, accessible luxuries like perfume—a way to express their individuality without being ostentatious. More than just a beauty product, perfume has become Gen Z’s own language in expressing personal style. They choose scents to reflect themselves according to popular aesthetic trends. For example, according to Upton Clark, a Gen Zer pursuing a “clean girl” image might choose Maison Margiela Replica Bubble Bath, or those who want to aim for the minimalist yet luxurious beauty of “quiet luxury” will look to Maison Francis Kurkdjian Baccarat Rouge 540.

Don&#39;t hesitate to invest to retain youth

Although they haven&rsquo;t reached 30 yet, many Gen Zers are already concerned about anti-aging. An article in Vogue Business about the &ldquo;collagen banking&rdquo; trend &ndash; a method of storing collagen through non-invasive therapies (citing data from market research company Circana) shows that 70% of Gen Zers use anti-aging serums daily.
Unlike previous generations, Gen Z has grown up in an era of social media and photo editing, where their appearance is constantly under scrutiny. This has contributed to the trend of &ldquo;prejuvenation&rdquo; &ndash; combining skin care with cosmetic treatments to prevent premature aging.

This generation’s desire to maintain a youthful appearance is also reshaping the beauty industry. According to Circana, half of American consumers now seek makeup products that also include skin care, which fits the mindset of more than 60% of Gen Z and Millennials, who see beauty as more than just makeup, but a long-term investment in their skin.

How Gen Z is redefining luxury with new standards

Tags

Related Articles

Hommes

Gen Z sparks the return of croptop fashion

Fashion

Gen Z: Fashion Obsessions and Must-See Trends

Culture

Gen Z and Millennials are investing in jewellery, sneakers, and fine wine

Recommended posts for you

Ibiza

The Precious Life

Ibiza

Ibiza, I’m Back

Ibiza

Missoni Ibiza – A New Chapter in Colour and Craft

Ibiza

A Signature Summer: Burberry Takes Over The Standard Ibiza

Ibiza

Summer Check

Ibiza

Where Everything Happens

Ibiza

Connected with Paradise

Ibiza

We Are the People