Luxury escapism for GenZ
Redefining ‘Luxury’ for Gen Z
As a 22-year-old living in New York with (some) disposable income and a busy social calendar, I fit perfectly into that ‘Gen Z’ target that brands want to connect to. And yet, despite being fully aware of the tactics used to convince us to purchase, I often get caught up in the whirlwind of elevated products with plausible price tags that I hope will make me feel ‘good’.
Take my new gym membership as an example. Now I know that $270 a month might sound crazy (especially to my midwestern friends), but I completely bought into the ‘deal’ they sold me on being part of the most ‘lux’ gym in NYC – Equinox.
Brands like Equinox provide a sort of religion for today’s consumers. They offer us an escape from the mundane, promise us a ‘better’ life, and maybe even give us more followers.
In a somewhat contradictory world of economic turmoil and over-consumption, it’s no wonder my generation feels the need to escape from the day-to-day by buying into products and brand experiences that make us ‘feel’ something. In this article, I’ll explore how brands are tapping into this idea of ‘escapism’ to connect with my generation and redefine what ‘luxury’ looks like for Gen Z in the process.
First let's talk about some trends we are seeing with my generation:
RENTING STATUS
The fashion industry often paves the way, and one of the biggest trends right now is rental. Why buy when we can rent for a fleeting moment? In 2022, services like Nuuly and Vivrelle grew 10% in revenue as people broke out of their covid-induced separation and put their best foot (and brand) forward, renting high-end garments and accessories for a night out on the town or for special events. Gen Z is living in an age where luxury fashion is attainable, even if it's not ownable.
The clothing rental industry's net worth currently sits at $2.3 million in the US and is projected to jump to $4.5 million by 2028, emphasizing consistent growth and a significant attitude shift around renting over purchasing. However, the conversation is not so much centered around the products themselves, but more on the idea that consumers want to buy into experiences – to flaunt an expensive bag at an event, or show up in an elegant dress to impress a date, without having to give into the price tag.
It makes sense that people want to feel what it’s like to live a bit of that luxury lifestyle when they don’t fit in the tax bracket of a designer goods connoisseur. It makes us feel important, and allows an escape from the day-to-day, if only for a brief moment.
THE ‘YASSIFICATION’ OF LIFE
To ‘yassify’: To overhaul something and make it more fabulous, or position it in a way that seems more glamorous.
Brands across all categories are tapping into the ‘yassification’ trend by completely overhauling typical category design cues to feel more glamorous and lux. Through this lens, everything from beauty products to kitchen items can become a status symbol. Why buy a regular lip balm like Carmex when you can buy into the Glossier experience? Beautifully designed packaging, satisfying scents, all delivered to your door in that iconic light pink box that’s just begging to be shared on your socials.
From localized micro influencers to the Kardashians, people have been building successful careers out of flaunting items, life experiences, and yassifying small gestures across social media. While the majority of us might not be able to afford the lifestyle of a social media star, we sure can afford to escape into their aspirational world for a moment if we wear the lipstick they are rocking – a key reason why ‘Dior Lip Glow Oil’ sells out almost instantly every time it gets a restock.
And it’s not just beauty. Brands like Graza are ‘yassifying’ more conventional, everyday categories. Elevating the humble olive oil with its ‘chef-ready’ lux version of the kitchen staple. Graza sold out within a week of launching. Yassifiying the most mundane everyday cooking product, complete.
In this post-pandemic world, Gen Z consumers want to feel important, to be the influencers rather than the influenced. So they seek out products across all aspects of their lives that help them to forget their daily routines, elevate their lifestyles, and allow them to rise to those aspirational levels.
SPIN-OFF BRANDS
Despite having the most spending power in the market right now, Gen Z is at the start of their careers so generally can’t afford to buy lux brands. Back in the fashion world, designer labels are bridging this gap by creating more affordable spin-off brands, providing opportunities for everyone to experience the brand, not just older, more affluent consumers.
Inspired by the Y2K trend, ‘Heaven’ by Marc Jacobs has been flying off the shelves since its launch. Costing around 50% less than normal Marc Jacobs lines, this sub-brand is much more accessible and often provides the first ‘designer’ purchase for some young adults. ‘Coachtopia’ by Coach has done a similar thing.
While leaning into broader cultural trends like Y2K to appeal to Gen Z, it’s important to note that an affordable price point is a key factor in the success equation. Buyers get to feel like they are part of a luxurious experience, at a fraction of the cost.
So … how to market luxury to Generation Z?
THREE CONSIDERATIONS FOR SELLING LUXURY TO A GEN Z
Leaning into broader escapism codes that resonate with Gen Z audiences today, brands can create products and experiences that make them feel like they’re part of something exclusive in an attainable way.
My top three things to consider when building a luxury brand for a Gen Z audience are below:
How Does it Feel?
Focus on how the product will make consumers feel. Will it be a vibe curator? Will it make them feel classy? Think about the elevated feeling you want to create for your audience, then build a visual world around your brand that communicates that feeling to connect with Gen Z.
2. Brand With Confidence
Glossier positioned itself as ‘premium’ from day #1. The brand’s number one selling product is a $15 lip balm, yet it has the same ingredients as a $4 tube of Aquaphor. Overall, Glossier’s product portfolio isn’t much higher quality than most drugstore brands, but its cohesive branding and strong positioning make you think otherwise. Give people a reason to believe that it’s worth more, and they’ll pay more.
3. Innovate Outward
Your product does not have to be a one-size-fits-all. Don’t be afraid to steal share from a younger – or older – audience. What are they seeking? How can you create another product or adjust your current offerings to serve them better?
Whether you’re revolutionizing a high-end fashion brand or launching a range of premium drink offerings .. *fingers crossed*, think about how you can provide an authentic brand experience. One that offers a moment of lux escapism at an affordable price point. It’s true, as a Gen Z there aren't many ways I connect with in the luxury market. But I do justify ‘trading up’ smaller things to feel important in minute scattered ways. So, if you were wondering - I still wholeheartedly justify my Equinox purchase … for now.