Why the retail industry has its eye on Gen Z
Gen Z's spending power is growing, and the retail industry is taking note. The cohort is staying up to date with fashion trends through TikTok, thrift stores, and dupes.
Transcript
00:00 Gen Z is a very powerful generation for the retail industry to pay attention to, especially as their spending power is growing while they enter the job market.
00:09 I'm Jennifer Ortegal-Stockins and I am a senior retail reporter at Insider.
00:14 Gen Z really goes to TikTok for all of their information and especially their buying decisions.
00:20 And they can shop directly in the app, which makes it a lot easier.
00:24 A lot of people follow the hashtag #TikTokMadeMeBuyIt, and this is where a lot of people share their latest purchases, brands that they really like or products that are going viral.
00:35 A lot of major fashion companies are really taking advantage of the audience on TikTok, especially Shein, which is a fast fashion company.
00:43 A lot of influencers and customers have posted Shein hauls of all of their products that they've purchased on the site, sometimes hundreds, even thousands of dollars that they spent in one order.
00:55 There's this tension for Gen Z between purchasing a lot of fast fashion, but also wanting to support the climate and sustainability.
01:03 Gen Z is really prioritizing the climate by turning to secondhand and thrift shops or even online with Depop and ThredUp, these platforms that offer secondhand clothing.
01:14 Gen Z-ers are thrifting a lot of luxury items because luxury has become increasingly important and influential in their lives.
01:21 Gen Z is so interested in luxury that they're actually really tapping into this trend of buying dupes or kind of fake products.
01:30 But they're also making economic decisions, such as living with their families or their parents to cut down on their living expenses.
01:36 Gen Z is really facing a lot of challenges right now, from student loan debt to the housing crisis to just a really tough job market.
01:45 These challenges could really impact the retail industry because they are directly related to how Gen Z is going to be spending their money.
01:52 Whether it's buying fashion or the food that they purchase, the retail industry will really have to figure out better ways to market to Gen Z.
02:02 With all these challenges, it can be really difficult for Gen Z to even feel like they're able to grow up in this kind of economy.
02:09 And so I think that's really reverted them to this nostalgia and this desire to go back to some old styles.
02:16 We're seeing a lot of resurgence of the 90s and Y2K.
02:20 Some of the styles that we're seeing come back are like low rise jeans, flare pants, halter tops, a little bit of that grunge, like slip dresses and the kind of 90s punk look.
02:33 And we're also seeing bucket hats.
02:35 They're watching Friends and Clueless and some of these like 90s shows and TV shows that are really inspiring their fashion trends.
02:43 Gen Z is going to continue to have a growing influence on the retail industry.
02:48 And they will eventually outpace other generations.
02:51 So the retail industry is really going to have to continue to grow with Gen Z and market and cater to them.
02:57 [MUSIC PLAYING]
03:00 (upbeat music)