The Next Letter Is Z

By 2025, the most influential luxury shoppers in the world could all be below 30. Sincere Fine Watches’ general manager Kate Lim shares her thoughts on the emerging Gen Z consumer base for luxury watch retail.

- Natalie Phua

AS THE SPENDING power of Gen Z consumers grows, so does their appetite. With deeper pockets, Gen Z consumers are forecasted to represent 70 per cent of luxury spending by 2025, Bain & Company reports. In turn, this demands a shift in mindsets and business models on the part of luxury companies.

For Gen Z consumers who are ready to spend, a singular opulent handbag, for instance, is but a contender within an extensive array of alternatives. Moving beyond the traditional ideals of luxury that revolve around status and flamboyance, the next generation of luxury spenders look to pursue a more progressive set of values that include sustainability, inclusivity and transparency.

Gen Z customers are urging companies to amplify green efforts, propelling systemic change on a broader front, according GWI, a global market research agency. Also occupying a row on the catalogue of sought-after shared values is inclusivity. GWI’s reports indicate that younger consumers want to see themselves reflected in the brands they consume; to feel a sense of relatability.