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How Gen Z Purchasing Behavior is Shaping Clothing Retail?

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Snezhana Andreeva
Date
5th December, 2024
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8 minutes
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Retail is evolving more quickly than ever, and the main influencers? Gen Z-ers and their purchasing behavior. 

Born between 1997 and 2012, this generation’s impact on the fashion industry is becoming more prominent every passing day. 

However, Gen Z doesn’t shop like Millennials or Boomers. They don’t just buy clothes, they choose brands that match their values, style, and tech-friendly habits.

Let’s explore how their shopping habits are changing the retail landscape and what this means for clothing brands.

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Who is Gen Z and why are they so important?

Gen Z is the generation born after the Millennial generation. These groups of young people were raised during the rise of the internet, making them a fully digital-native generation.

What makes them special?

  • They grew up with technology: Unlike Millennials, who saw the internet become popular, Gen Z was born with smartphones. They naturally shop online, research brands, and read reviews.
  • They care about more than just looks: This generation doesn’t just buy things because they look nice. They care about what the product stands for—like being eco-friendly, inclusive, and produced ethically.
  • They set trends, not just follow them: Gen Z doesn’t just follow what’s popular, they start new trends. If your clothing brand isn’t keeping up, you might as well not exist.

Example: Think about how brands like Aerie stopped using photo editing, and are instead using completely unretouched photos to support body positivity. That’s the kind of strong, values-based action Gen Z loves.

What is Gen Z’s spending behavior?

It’s not just about sales or fancy commercials anymore. For Gen Z, buying things is very personal, and here’s how they spend their money:

1. They like brands that care about important issues

If your clothing brand helps with things like protecting the environment or fighting for fairness, you’re already close to winning them over. They’ll look into how your products are made, check if you treat people well, and want to see real results—not just words.

2. Friends’ opinions matter a lot

Forget regular ads. Gen Z believes more in TikTok stars, YouTube reviews, and what their friends share on Instagram. If someone they respect talks about your clothing store, it’s like getting a big thumbs up.

Check out: 10 TikTok ad ideas

3. Tech-friendly convenience

Smooth online shopping, mobile-ready websites, and quick delivery are essential. If it’s not simple, they’ll switch to a competitor who makes it easy.

4. Realness trumps perfection

For Gen Z, being real isn’t a choice—it’s the philosophy of their shopping. They want brands to be genuine and match their beliefs. A brand that is open about where it comes from, how it’s made, or what it stands for earns its trust.

Showing what happens behind the scenes, sharing unplanned stories, and capturing unedited moments help build a bond and trust.

What are the buying trends for Gen Z?

When it comes to shopping, Gen Z is all about setting trends. They are fast, decisive, and know a lot about clothing brands. Their shopping choices are strongly affected by social media, popular culture, and brands that fit their busy lifestyle. Here’s what they care about.

1. Loving luxury clothes

Gen Z likes luxury brands, but they approach them in a much smarter and more modern way. Instead of sticking to just one brand, they often combine expensive items like a Gucci bag or a Versace belt with more affordable ones, making fashionable outfits without spending too much money.

According to Statista, about half of people in the U.S. aged 18-29 think luxury brands should offer more and make them easier for regular people to buy.  On the other hand, only about 20% think luxury should stay expensive and only for those who can afford it.

This shows how Gen Z is changing the luxury fashion market, liking things that are more inclusive while still caring about style and quality.

2. The athleisure revolution

Athleisure brands such as Lululemon and Nike are the leading popular brands because they provide both comfort and style. For this generation, combining performance with fashion feels natural.

3. The power of social media and celebrities

Gen Z’s shopping choices are heavily influenced by what they see online. A single trend on TikTok can instantly boost a product’s popularity.

Consider Alo Yoga as an example. This high-end athleisure brand has attracted Gen Z by combining exclusivity with social media influence. Their products are not just about comfort or fashion—they represent status and personal expression. When Gen Z sees influencers and celebrities wearing Alo Yoga on Instagram or TikTok, they see the brand as a symbol of their aspirations.

The outcome? Gen Z invests heavily in Alo’s stylish, premium activewear, understanding that it offers more than just clothing—it provides a taste of a desired lifestyle. This demonstrates how luxury brands with a strong social media presence can succeed with this generation.

@alo

truly the perfect set + colorway for going from studio to street this season 🫒 #kendalljennerlook #aloyoga #matchingset

♬ playboi slowed banakula x LLusion – LLusion

4. Loving big, famous items

Gen Z-ers love to be different. Whether it’s a bright green Gucci T-shirt or special shoes from Versace, Gen Z goes for bold, eye-catching items. They aren’t afraid of bright colors, unique patterns, or extravagant designs, and brands that offer these bold choices do well with them.

Stores like UGG quickly release limited-edition collections that feel special—exactly the kind of thing that makes Gen Z click “add to cart.”

5. Loyalty to experience-focused shopping

Gen Z-ers enjoy visiting flagship stores that provide unique and engaging experiences, such as Nike’s House of Innovation or Gucci’s concept stores, where shopping feels like attending a special event.

@jackgrimse

Nike Novelty 👟 Have you ever been to the Nike House Of Innovation in NYC? 🤔 📍 650 5th Avenue, New York, NY 10019, United States #Nike #Football #Soccer #NewYork #NYC

♬ Like Me, Like Me – Katherine Li

Even popular mall brands like H&M are enhancing their stores with temporary pop-up shops and interactive displays to keep these young shoppers interested. 

How can retailers capture Gen Z’s attention?

This generation knows exactly what they want, and it’s not just about following the latest trends. Here are 9 tips for clothing stores to catch their eye:

1. Use social media

Be active on TikTok, Instagram, and YouTube, where this group spends a lot of time. Share interesting content like challenges, how-to videos, or product showcases.

2. Show your beliefs

Let people know what your clothing brand cares about. Whether it’s being eco-friendly products, supporting gender equality, or standing up for social justice, this generation is more likely to support brands that have a purpose.

3. Share customer stories

Encourage shoppers to share their experiences. Post their pictures, videos, and reviews to create a sense of community and make people trust your brand more.

4. Make shopping fun

Offer interactive experiences like virtual try-ons or live shopping events to keep this generation engaged and entertained while they shop.

5. Work with influencers

Team up with influencers who connect with Gen Z. This group trusts influencer suggestions more than regular ads.

6. Promote inclusivity

Ensure your marketing, products, and models show a variety of body types, ethnic backgrounds, and gender identities.

7. Make checkout easy

Offer a quick and smooth shopping experience, with simple navigation and options like one-click checkout or mobile payments.

8. Provide flexible payments

Make it simpler for Gen Z to buy now and pay later by adding services like Afterpay or Klarna to your checkout process.

9. Share behind-the-scenes

Show how your products are made or introduce the people behind your brand. Gen Z values authenticity and appreciates transparency.

@miumiu Step behind-the-scenes with actor Emma Corrin in the premiere episode of Miu Miu | Behind the Campaign. #MiuMiu #DietroLeQuinte #MiuMiuHoliday #TikTokFashion #HolidaySeason ♬ original sound – Miu Miu

The future of Gen Z in retail

Gen Z is changing the way retail works more than any other generation before them. They have high expectations, but they also care deeply, are very creative, and stick with brands that understand them. For clothing stores, it’s a chance to form stronger, more heartfelt relationships with the next group of shoppers.

In the end, if you’re ready to change, be creative, and connect with Gen Z on their terms, your brand could have a successful future ahead.

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