Gen X and Baby Boomers might be the wealthiest demographics in Europe, but when it comes to buying fashion, younger generations are leading the way. With the continued growth of ecommerce and online fashion marketplaces in Europe, the digital native generations - Millennials and Gen Z - are fast becoming the dominant consumers in the industry, bringing their unique expectations and preferences into play.
From mobile and social media use to views on luxury and second-hand clothing, here are five key Millennial and Gen Z fashion buying habits that brands need to know.
Online vs offline
How do you like to buy clothes? Your answer will likely depend on your age, gender, location and purchasing power. In today’s hybrid retail world - where mobile, desktop, high street and shopping centres are increasingly available to all European consumers - the choice of purchase methods has never been wider or more segmented.
For instance, the RetailX European Fashion Report 2023 found that offline sales are still dominant in Southern Europe and Eastern Europe with comparatively low internet usage (online sales account for one in five fashion purchases), whereas online fashion sales are more prevalent in Central and Western Europe (42% online vs 58% offline). Women in Europe are considerably more likely to buy online impulsively than men (57% vs 38%) and Gen Z shoppers also prefer buying from web pages to physical stores (52% vs 48%).
Mobile vs desktop
Given some smartphones are almost the size of desktops, it’s no surprise to see traditional computer sales lose market share to its more mobile cousin. In Central and Western Europe, the mobile-desktop split is practically even (49% vs 51%), with a rough 40:60 split across the rest of Europe. Mobile purchases are more likely among younger generations (i.e. Gen Z make a third of transactions via mobile) but this underestimates the role of mobiles in the consumer journey. Many people will scroll through marketplaces or social media on-the-go, but might make their final purchase decision via a desktop at home or in-store (54% of consumers might view a product online, but buy in store). Brands should therefore consider mobile’s role and optimise their listings (i.e. great photos, simple descriptions and mobile-friendly UX) accordingly.
‘Real’ social media vs direct ads
When it comes to shopping, social media is a young person’s game. Of the 338 million Instagram users in Europe, 70% are under the age of 35. A third of Gen Z shoppers research products on social media before making a purchase and 88% of Gen Z shoppers have bought an item after watching a video on TikTok’s Live Shopping option. In fact, over half of Gen Z spend 4+ hours per day on social media.
For fashion brands selling to Millennials and Gen Z, Instagram, Facebook and TikTok are essential to marketing - be it videos of influencers wearing new styles or brands live streaming fashion events - as well as sales, with social media-based purchases estimated to grow three-fold by 2028. But not all social commerce is the same. In recent years, influencer-led product placements and direct ad pop-ups have made less of a splash than subtle ‘real-world’ videos of clothing being worn and enjoyed naturally (by celebrities or popular accounts). Fashion brands need to invest in the right type of social videos to get traction. In fact, 81% of retail brands say they plan some form of investment in livestreaming in 2023.
Luxury vs budget
Which demographic buys the most luxury clothing? You may have thought that older, wealthier shoppers would lean towards luxury, while younger less wealthier shoppers opted for more budget options, but younger consumers are the new driving force in luxury fashion retail. Whereas mass market clothing is practical and affordable, it’s also standard and homogeneous, and younger consumers are looking to luxury as a means of standing out from the crowd. This demand has increased the popularity of ‘affordable luxury’ - i.e. well-made, sustainable and distinct clothing lines.
At the same time, though, budget options also remain popular among Millennials and Gen Z, with fast fashion retailer Shein being the most downloaded app in Europe in 2022.
Sustainability vs originality
Just like buying clothing that fits your style, Millennials and Gen Z are buying clothing that fits their values, particularly sustainability (69% of Gen Z consumers think shopping sustainably is important), and this influences their shopping habits. For example, 80% of Gen Z shoppers don’t believe buying second-hand carries any stigma with 42% of both Millennials and Gen Z likely to buy pre-used fashion (compared to just 32% for Gen X and 16% for Baby Boomers). Brands that improve their sustainability from production to distribution - think organic raw materials, ethical manufacturing and electric vehicles deliveries - will have an advantage (check out our blog on improving your listings for sustainability here).
The next generation is coming
Together, Millennials and Gen Z are Europe’s leading fashion buyers and will account for 70% of global consumers by 2028. Fashion brands need to keep tabs on their purchasing habits to get ahead and improve sales, while also keeping check on the emergence of Generational Alpha (those born in 2010-2024); the oldest of which are currently entering their teenage years.
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