How Generation Z are accepting nothing less than a life of luxury
The demographic of consumers in the luxury sector is becoming younger and wealthier as the generation born between 1995 and 2012, otherwise known as Generation Z, are expected to become the greatest luxury item spenders by 2030. Actually, between 2021 and 2022 Gen Z accounted for 63% of the total sales in the luxury sector- they are so committed to elevating the standard of living to one of luxury to the extent that it looks like the luxury sector is heading in the direction of becoming "recession-proof". The number of high-end products that have sold out after going viral on platforms with large Gen Z user populations reveals a lot about Generation Z's spending power. In response, luxury firms are now courting Gen Z consumers, a group they have traditionally disregarded, but whom they now perceive an opportunity. It's amazing that Gen Zers choose to spend their money in this manner—what is it that entices them to live up to a standard of living that Gen Xers and Baby Boomers regarded unrealistic? Gen Z is a very distinct generation, which is interesting given that they are the first to have grown up on and be raised by social media.
Generation optimistic
With 72% of Gen Z members anticipating extreme wealth one day, they appear to have a somewhat at ease outlook on money and to be very optimistic about their future riches. This could be largely due to the fact that we live in a time where there are seemingly limitless employment prospects, more people are publicising their accomplishments on social media, so money and a life of luxury appears to be more attainable than ever.
Because Gen Z is an honest generation that values authenticity and transparency, it stands to reason that they would value the opinions of real people and social media influencers online who present themselves as reliable sources of product information in order to encourage them to purchase luxury goods. Most traditional types of advertising lack the sincerity and openness that social media promotion and advertising possesses. According to Gen Z customer shopping inspiration data, 97% utilise social media as their primary source of shopping inspiration. As a result, luxury items sold on social media may have an impact on the purchasing decision of Generation Z.
"I'll make my money back, but I'll never..."
Gen Z appears to be making self-investments and adopting a culture of having fun and living lavishly while they're young without worrying about financial responsibilities. This way of thinking is also encouraged by TikTok social media trends that preach, "I'll make my money back, but I'll never..." The blank that comes after that will typically read something like, "be 21 in Paris again." The term "lucky girl syndrome," popularised by social media influencers, describes the new perspective that Gen Z has on life as a result. This is when you think life will bend in your favour by employing the power of positive thought by believing that everything will work out for the best. Due to the lucky girl syndrome which drives Gen Z's motivations to spend a lot of money and live the luxurious lifestyle that social media has promoted to be the norm, this mindset has permeated how they view their relationship with money to one that is extremely easy and light-hearted.
The future
Money and a life of luxury can be a harmful affair for Generation Z, since there is a small line between believing money will return, applying positive thought, and delusion. Every generation approaches money differently, yet there is real danger and concern for many Gen Zers who are financially insecure and have a relaxed relationship with money. According to a 2022 survey, 45% of those in generation Z live pay check to pay check, and with the recent pandemic compounding financial hardship, Gen Z may have a difficult time learning to adapt to a mindset that does not make an influencer-type luxurious lifestyle the minimum requirement during this upcoming very real economic downturn.