Proud and demanding, aware of health and the environmental issues, tech-savvy and always online - generation Z stands for a fundamental change in values in our society and a new type of consumption. The generation following the millennials includes those born between 1996 and 2010. They want their bodies and souls to be healthy. And they want our planet to be healthy. According to a study from business advisory and consulting company PwC, more than half of consumers within this age range are willing to pay more for environmentally friendly or ethical products. “Young people have high expectations. They want products and services to be fast, intuitive, entertaining and sustainable,” says Dr Christian Wulff, head of retail and consumer goods at PwC Germany.
This development is evident also in the luxury sector. Almost the entire generation (94 per cent) is convinced that luxury brands have a social and ecological responsibility . Furthermore, they demand transparency and active communication about the sustainability of brands. These findings and the correct conclusions are important when it comes to the future viability of companies. In 2019, generations Y and Z accounted for 100 per cent of worldwide luxury goods growth. In 2025, generation Y is expected to account for 45 per cent of growth in the luxury market, closely followed by generation Z, which is expected to account for 40 per cent by 2035 . “The coronavirus crisis will force the industry to think more creatively and innovate even faster to meet a host of new consumer demands,” said Claudia D’Arpizio, main author of the “Bain & Company Luxury Study 2020” and the corona update published in spring 2020.
“In the years to come, labels which will not take these aspects into account won’t simply lose market share, they will be driven out of the market itself,” says Antonio Achille, partner and global head of luxury goods at McKinsey & Company. The new generations are slowly but surely conquering the market and are setting new standards. So, it is high time for companies to take notice of the consumers of the future and question their own business strategies.
#McKinsey #PwC #Bain&Company #Generation Y #Generation Z #Change in values #Consumption #Sustainability #Study
Find more information here:
 Ipsos (2019): World Luxury Tracking 2019
 Bain & Company (2020) „Eight Themes That Are Rewriting the Future of Luxury Goods“
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