How to Make Gen Z Fall in Love with Luxury Again
This article was written by Demi Karanikolaou for Harper’s Bazaar Greece. You can find it here.
What fuels luxury spending, if not dreams and aspirations? Unfortunately, dreaming appears to be an expensive hobby for Gen Zers, whose down-to-earth approach is reshaping the luxury industry, just as the sector deals with a demand and credibility crisis. According to a Bain & Company’s May 2025 Report, global luxury sales are likely to fall between 2 percent and 5 percent this year. And while some easily identifiable issues - such as looming US tariffs, global uncertainty, and the Chinese property crisis - are clear, according to the same report 50% of consumers blame product price increases and 30% blame a lack of excitement. Clearly, the problem runs deeper than the state of the economy itself. The luxury market is facing a complex situation: brands need to redefine their strategies in order to avoid having young consumers lose interest.
A Perfect Storm
Social media was once seen as a godsend for the luxury industry, especially during the pandemic. But in 2025, years of overexposing luxury products have left everyone tired of seeing the same items on every influencer - whether genuine or fake. Those who grew up in the age of internet culture, have watched their favorite creators climb the luxury ladder: progressing from owning a Zara bag to a Coach, then a Balenciaga, a Chanel, and finally, owning multiple Hermès pieces. But when even Hermès Birkins become commonplace, what’s left to dream about?
A quick search on YouTube reveals a surge of videos discussing the “End of Luxury,” with popular influencers like Lydia Elise Millen selling their designer handbags and urging viewers to reconsider overconsumption. Their reasoning? High prices, declining quality, high crime in big cities and uninspired design. The data supports these sentiments. Bain & Company indicates that advocacy for luxury brands continues to decline among younger generations. To make matters worse, scandals have tarnished the reputation of some luxury houses, including allegations of using sweatshops in Italy. As the dream fades and prices soar, fake luxury goods - particularly high-quality “superfakes” from China - are becoming more attractive to young buyers, who lack the shame that past generations would associate with such purchases.
"I don't quite see real luxury - quality, scarcity, and authenticity in design - from any brand, other than Schiaparelli," says Gen-Zer Alissa Aulbekova, co-founder of the digital fashion brand Auroboros. But is it all doom and gloom? Not quite. Brands that adapt to the real needs of young consumers are thriving. Gen Z’s preferences for quieter, alcohol-free, and clean lifestyles are influencing design - from the rise of kitten heels to sneakers replacing towering stilettos.
The Winning Strategies
In the midst of this luxury retail apocalypse, two extremes are thriving: ultra-luxury brands like Hermès, and accessible luxury brands like Coach. While high-end customers remain largely unaffected by economic challenges, previously overlooked mid-tier brands are experiencing a renaissance.
1) Accessible Luxury on the Rise
Heritage mid-tier brands like Vivienne Westwood, Polo Ralph Lauren, and Coach are experiencing revivals, gaining interest from younger consumers. Contemporary brands like Self-Portrait and Polène are also building loyal followings by offering a balance of design, storytelling, quality, and honest pricing. “With Self-Portrait, it’s never been about exclusivity - it’s about creating pieces that are considered, well-made, and genuinely wearable. We focus on an honest price point because I want our clothes to feel accessible, not out of reach. I think that realness, that sense of connection to everyday life, is what resonates,” explains Han Chong, the founder, creative director, and owner of Self-Portrait.
2) Interesting, Surprising Design
In a world dominated by standardized Zara designs, jeans, and white sneakers, brands that dare to be different capture Gen Z’s attention. Alaïa’s mesh ballet flats went viral for defying beauty norms without being over-the-top. VIVAIA’s sculptural sneakers, worn by Bella Hadid, offer affordable yet bold style. And Heaven by Marc Jacobs, with its 2000s nostalgia and quirky designs, has revived interest in a brand that was starting to decline. Is there a strategy for brands to think outside the box? “I think it starts with staying true to our purpose while always being open to experimentation and evolution. We constantly look for ways to bring newness into each collection - whether it’s through unexpected fabrics, playful silhouettes, or embracing technology in a way that feels organic,” says Han Chong of Self-Portrait.
3) Real Storytelling Instead of Status Symbols
Gen Z is turning away from brands that rely solely on status and exclusivity. Instead, they crave stories and communities they can be part of. Telfar’s viral handbags did not consistently sell out because they gave the wearer the status of an Hermès bag - they offered scarcity and access to a community of like-minded people. There’s a reason why, for young Millennials and Gen Zers, a cool vintage designer bag might be preferred over a brand new one in-store - it tells a story. Even just getting customers into stores now requires unique experiences, personalization, or even new technologies.
“What I am seeing is that consumers - regardless of their age - are craving authenticity and transparency. They want to connect with something real and something that speaks to their sense of individuality. It’s not just about the product but the story behind it - the journey it has taken to get to them,” says Han Chong.
4) Transparent Craftsmanship and Creative Sustainability
In a world of quality, supply chain, and reputation scandals, brands must embrace transparency. Luxury shoppers want to know who made an item, whether it was ethically sourced, and whether the quality truly matches the price. For example, the minimalist brand The Row is praised because its quality is visible - not just priced in. Hermès is known for strictly using impeccable French craftsmanship, a true fact that protects them from any false “ Made in China” accusation on TokTok. Loewe, Coach, and Polène also maintain high standards of quality at fair prices. On the other hand, Marine Serre’s creative upcycling and custom resale collaborations make sustainability feel stylish instead of operational. The message is clear: without honesty, transparency and fair treatment of it’s employees, no brand can build trust with Gen Z.
5) Be Relevant in Modern Culture
Gen Z’s obsession with cultural trends is rewriting the rules. Who would have thought that Harrods would host a pop-up for the Chinese company PopMart and their popular “Labubu” plush toys, or that Loewe would create a tomato-shaped clutch, as a response to fans' viral video. On the music scene, K-Pop and the unique style of its much beloved stars are influencing entire strategies: “Working with someone like K-Pop artist JISOO - who organically wears our clothes - allows us to speak to her generation of followers. There’s a realness to her that younger audiences connect with,” says Han Chong.
Looking Ahead
Despite what any viral video declares, luxury fashion is not dying, but rather evolving naturally. Gen Z seeks authenticity and quality in a world saturated by false perfection. They expect brands to show up with transparency, creativity, and values that align with the way that they see the world. As their purchasing power increases, Gen Z will become a decisive force in the global markets. The brands that will thrive are the ones willing to adapt, by understanding this generation’s desire for deeper connection, smarter design, and a new kind of meaningful luxury.