Gen Z & Alpha: Shaping the Future of Fashion Consumption

Informational • 11m read

Gen Z & Alpha: Shaping the Future of Fashion Consumption

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Mai Nguyen • Oct 25, 2024

The fashion industry is changing rapidly, with many shifts and chaotic trends, especially among Gen Z and Gen Alpha. Platforms like TikTok, Instagram Reels, Live Shopping, and K-Pop are driving trends that spread quickly and attract followers faster than those of previous generations. This phenomenon is largely due to the power of social media.

As we are living in the digital era, we can see that it has given these young fashion lovers (Gen Z & Alpha) a unique relationship with content creation and fashion that's different from older generations. The concept of 'see now, buy now' has moved into the online space, transforming the industry and introducing new perspectives and challenges.

We delve deeper into the dynamics of these generations, we'll explore how their unique characteristics shape their consumption patterns and what this means for the future of fashion brands striving to connect with these influential demographics.

Understanding The Generation

A Bigger Picture

To have an easy-understanding picture of what Gen Z & Gen Alpha look like, we will describe from the Baby Boomers generation to Gen Alpha.

And there are names that are not mentioned here.

Gen Z, Gen Alpha & Consumption

Gen Z has grown up experiencing inflation and global uncertainty, especially in the U.S., UK, and EU. These factors suggest that price sensitivity could be a long-term concern for this generation. Having lived through the COVID-19 pandemic and ongoing political conflicts happening in the EU during Russia’s invasion of Ukraine, Gen Z is more value-driven and price-conscious, which will likely influence their spending habits.  

In an oversaturated market, Gen Z isn’t just looking for cool products—they want brands that stand for something. They vibe with companies that back the causes they care about, unlike older generations who focus more on family and wellness perks.

Gen Z's fashion journey leans heavily on smartphones, social media (especially TikTok), and new tech like the metaverse. Despite their digital focus, they still crave human interaction, driving demand for a “phygital” shopping experience. 

Born between 1997 and 2012, Gen Z is set to become the wealthiest generation, with spending power projected to hit $12 trillion by 2030. For instance, the average 25-year-old Gen Zer now earns $40,000 annually, higher than previous generations at the same age, fueling their growing spending habits, according to the "Spend Z" report from NielsenIQ.

Read more: How Gen Z Redefines Fashion Brands’s Loyalty Program.

Gen Alpha is very young today, but they are the first fully "phygital" generation, living seamlessly between the real and digital world. According to Cassandra Napoli from WGSN Consumer Insight, they're growing up balancing IRL and online life (URL). As kids of "sharenting" millennials and Gen X, they've been online since birth—some even had Instagram accounts before birth, and now they’re hitting their tween and teen years with their whole lives already documented online. Alphas prefer DMs on Instagram or chats over emails—they're all about connection. 

Abigail Bailey, managing editor at Coller Davis & Co., says Gen Z and millennials got caught up in trend culture and social media, messing with their mental and financial health. But Gen Alpha’s flipping the script.

“They'll be smarter with their time, money, and focus,” Bailey says, “and find it cringe to be too online or too trendy.”

For a glimpse into the Z-Alphian future, Napoli says retailers should watch "Gen Zalpha”. This group will be the first to make real cash online, whether through content creation or gaming. Brands need to pay attention—these trends could change the game for careers, life goals, and how these genes consume brands.

Brick-and-mortar operations must function like online shops, knowing exactly what's in stock; if info isn’t easy to find, it’s as good as non-existent. Pop culture drives their buying decisions. When Alphas stream shows, they want to grab what characters are wearing right away. Instead of just merch for the summer phenomenon “Barbie”, retailers should launch a "Barbie" costume–design shop with cute dupes!

Barbie becomes an influencer on Instagram.

The Luxury Fashion Hunt

The KidsKnowBest reveals that Gen Z loves luxury brands like Gucci and Louis Vuitton as they reach their late teens and twenties. For example, Louis Vuitton collaborates with Gen Z influencers like K-pop singers and US/UK stars as well as top models. While friends and family influence their fashion choices, social media influencers have an even greater impact on what they buy. TikTok and Instagram are key sources for fashion inspiration.

Ultimately, social media significantly shapes Gen Z-Alpha’s style, allowing them to follow diverse trends instead of relying solely on celebs or magazines like earlier generations.

Louis Vuitton ft. Lisa – Blackpink.

Gen Z and Alpha have grown up in a world of digital personalization, shaping how they shop. With AI and AR making customization easier, they’ll expect to tailor products straight from their phones. Brands should start focusing on this now to stay ahead.

No wonder some big brands like Balenciaga are launching fashion shows in mobile games, letting folks dive into an AR world and check out their collections. H&M, the fast fashion giant, has even opened a virtual showroom where shoppers can mix and match outfits in their favorite settings.

H&M Virtual Shopping Store.

Read more: Why Fashion Brands Must Integrate Advanced Technology into Product Development

Fashion Forward: Ready for the Next Gen, Now!

In 2023, Generations Z and Alpha will account for 45% of the population and will be the largest target segment for luxury fashion brands. Winning over their brand’s loyalty is tough at this time, but it's all about nailing the right mix of exclusivity, quality, and killer storytelling, all backed by a solid social media game.

As a fashion brand that is thriving in this packed market, how can you stay ahead of the trends with gens Z and Alpha?

First of all, brands have to be fluent in the digital fashion world. If you already have it, check your platforms and keep the strategies genuine. Even if Gen Alpha's on any digital stage, they should be there offering real value, not just a pretty avatar.

  1. Quality Ate All!

Born in any generation, as a consumer that you always hope to receive high-quality products in hands, then can reuse these pieces for any occasion. Especially, in the beauty industry like fashion, cosmetics and jewelry, customers will overlook the smallest details on their orders. Choose a good partner to make or design the products that align with your brand’s standards and meet your target audience’s expectations.

Inflow – leading on-demand manufacturing platform in Vietnam is a good example for a clothing brand who is seeking for a partner to produce high-quality products without breaking the bank. With minimum orders starting at just 100-200 pieces, you can keep costs low while maintaining premium standards.

  1. AI–Technology Fluency

Bailey predicts Gen Alpha will use AI and language models like older generations used Google, so businesses need new infrastructure to keep info accurate. Her advice? Start training your own AI now and plan to connect it to larger models, similar to how intranets worked when the internet began.

For now, there’s a rise in trend forecasting tools in the beauty industry like Inflow’s trend prediction tool for clothing manufacturing. This predictive platform helps fashion brands anticipate trending items and market pricing, enabling them to set profitable prices for their products.

Additionally, Inflow’s manufacturing platform utilizes AI-driven tools to streamline production processes, enabling brands to oversee and participate in every step, from material selection to quality assessment, remotely.

Read more: Discover the significance of Inflow’s Data Analytics Tool to Drive Fashion Business Success

  1. Personalization Over Trends

For Gen Z, personalized style rooted in niche cultural knowledge matters more than mainstream trends. They love unique expressions of individuality, often customizing fashion to match their tastes. This preference has sparked trends like collectible bags and foot charms for a tailored look. Brands need to offer bold designs across multiple collections to cater to diverse customer segments. 

Additionally, they favor DIY costumes over mass-produced items. For instance, Nike by You lets customers design their own sneakers with patches and embroidery. If digital customization isn't an option, focus on creating high-quality DIY designs with perfect seams and daring patterns that feel self-made yet timeless.

>> Visit Inflow’s trending personalized catalogs.

  1. Sustainability Over Excess

Gen Z and Alpha are all about fashion but know the deal with overconsumption, so they vibe with sustainable brands. User-generated content (UGC) lets them make unique pieces instead of buying mass-produced stuff.

Plus, UGC platforms that pay can turn hobbies into side hustles, pushing more young people to create and spot money-making chances. This builds their entrepreneurial spirit, turning UGC platforms into training grounds for future digital creators. Brands need to come up with ways to let Gen Alpha co-create products they’re into.

Meanwhile, Gen Z is savvy about their purchases. If they find out a brand isn’t sustainable, they're out. That’s why fashion brands are teaming up with ethical partners at every stage, often turning to reliable manufacturers and supply chains like Inflow.

Read more: 

In conclusion,

As we are moving to 2025, it's evident that the fashion industry needs to evolve with the preferences and behaviors of Gen Z and Alpha. Their emphasis on personalization, engagement, sustainability, and digital fashion will shape future trends. To remain relevant, fashion brands should leverage user-generated content platforms, provide tailored experiences, and support young entrepreneurs and creators.

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