As we experience another generational changing of the guard, it may be time to rethink the way we communicate with customers. The relationship between buyer and seller is ultimately transactional, but that relationship communicates far more than the exchange of money for products. From the customer’s point of view, a business isn’t just a provider of goods and services; it’s also a reflection of themselves, their values, where they fit into the world. The tastes and values of our customers will determine the most effective way to communicate with them, and those tastes are changing.
With the oldest members of Gen Z soon entering their 30s, luxury marketers have to shift their focus to understanding the consumption patterns of a new generation. And it feels like Millennials have only just grown up! While it’s easy to overstate the importance of “generation” as a demographic category and to reduce the complexities of each individual’s personality to the range of years in which they were born, there are enough similarities between members of a generation to draw broad yet useful conclusions about their behavior as consumers. So what conclusions can we draw about our Gen Z customers?
Unlike previous generations, Gen Z (and to some extent, Millennials) tend to view luxury goods as self-expression rather than signals of wealth and status. Emblazoning yourself with a logo to align yourself with the brand’s status is out; wearing things that feel authentic to your sense of self is in. That’s why legacy brands whose logo is the main draw, such as Louis Vuitton and Gucci, have struggled to connect with these younger consumers.
For young people today, knowing who you are is important. Authenticity matters again, and authenticity is the opposite of status seeking. Consumers who seek status are aspirational: “if I wear this, people will see me in this way.” Or, “people who belong to this high-status group that I want to be a part of wear this brand, so if I want to be seen as one of them, I should wear it too.” Gen Z, broadly speaking, is more concerned with authentically expressing their individuality.
When Gen Z becomes the main driver of luxury sales, it will be harder to say, “we’re cool (or sexy or refined or whatever your brand is), so if you wear our stuff, you’ll be cool too.” Contemporary attitudes have reversed this consumer-brand relationship. A Gen Z consumer is more likely to think, “I am cool (or sexy or refined or however they see themselves), and this piece of jewelry can help me express that.”
It doesn’t matter who made it or what kind of status the brand name carries. What matters is that the branding and voice are authentic and clear. It will be harder to connect with Gen Z consumers if you don’t have a clear sense of why your business exists, what your brand represents, who your products are for. But if you can answer those questions, you’re one step ahead in appealing to Gen Z.
