A recent report from Boston Consulting Group (BCG), in partnership with WWD, projects that Gen Z and Gen Alpha will account for 40% of global fashion spending by 2035, signaling a major shift in consumer demographics for the industry.
Tech-Savvy Shoppers Shaping Fashion
The report highlights that younger generations are not only spending more on apparel and accessories but are also more likely to use AI tools and digital platforms while shopping. This includes AI-driven recommendations, virtual try-ons, and personalized shopping experiences.
Brands Adapting to Emerging Consumer Values
Fashion brands are expected to increasingly tailor their strategies to tech-savvy consumers, focusing on digital engagement, sustainability, and culturally relevant products. The study notes that Gen Z and Gen Alpha value authenticity, social responsibility, and interactive shopping experiences, reshaping marketing and product strategies.
Driving Innovation in Retail and Product Design
Analysts predict this generational shift could drive innovation in product design and retail technology, as brands compete to capture the attention of younger, digitally native buyers who prioritize convenience, personalization, and brand values.
Long-Term Transformation of the Fashion Industry
The report underscores a long-term transformation in fashion, emphasizing that understanding and engaging emerging consumers will be critical for companies aiming to maintain growth, relevance, and competitiveness in the coming decades.
