Luxury, premium, and mass market brands adapt to Gen Z consumers

In the fast-evolving world of fashion, Gen Z is proving to be a game-changer, compelling luxury, premium and mass market brands to rethink their marketing strategies, according to the latest data report from Launchmetrics. 

Luxury brands opt for Gen Z-focused strategies

The report highlighted how the top 20 luxury brands experienced an average Media Impact Value (MIV) growth of 69% over the past three years. Among the top 20, Dior, Chanel, Louis Vuitton and Gucci remained in the top 5 compared to 2020, with Prada creeping up to steal the fifth position from Saint Lauren. 

Loewe takes the spotlight as the luxury brand with the biggest growth since the pandemic (+168%), from not even appearing in the ranking in 2020, to placing 13th in 2023. Under the creative direction of JW Anderson, innovative designs, like the faux flower bodice and balloon shoes from the SS 2023 collection, have captivated social media, driving Loewe’s rapid ascent.

Although not in the top 20, Jacquemus and Schiaparelli were noted as brands to watch, with MIV increases of 86% and 463%, respectively. Schiaparelli, under Daniel Roseberry, has gained attention for its viral fashion moments, including high-profile appearances by Kylie Jenner and Doja Cat.

Celine, Miu Miu & Valentino all saw significant hikes in their MIV as well, with 151%, 141% and 109% growth respectively. Notably, Miu Miu has maintained its relevance by effectively leveraging Gen Z celebrities. The brand recently collaborated with influencers like Sydney Sweeney and Emma Chamberlain for the SS24 collection.

Premium Brands embrace influencer culture and inclusivity

Still, premium brands experienced the highest MIV growth since the pandemic, averaging 114% among the top 20. Notably, Skims, founded by Kim Kardashian, soared to the top spot with a 407% increase, illustrating the power of influencer marketing and inclusivity.

American brands Calvin Klein and Coach were once again in the top 5 among the premium market, compared to 2020, reflecting their strong appeal to Gen Z. Coach, in particular, has been recognized as Gen Z’s favorite handbag brand, supported by its $355M MIV in 2023.

Birkenstock has equally capitalized on the comfort trend, achieving a 149% rise in MIV and earning the eighth spot in 2023, up from number 17. The brand’s strategic marketing moves, including collaborations with Dior and a timely association with the Barbie movie, have cemented its status as a cult favorite among young consumers.

Levi’s also climbed the ranking claiming the number three spot in 2023, by staying attuned to contemporary issues and trends. Notably, the brand’s focus on sustainability resonates with Gen Z’s environmental concerns. Collaborations with Gen Z icons like Hailey Bieber and Jaden Smith, and more recently with Kenzo and Emma Chamberlain, have infused a fresh, trendy vibe into Levi’s classic denim, appealing to the younger generation’s fashion sensibilities.

Sportswear dominates mass market trends

Mass market brands have also proven their appeal among Gen Z consumers, growing by 62% since 2020, with sportswear brands leading the charge.

Shein, in particular, stands out with a 237% increase in MIV, driven by effective use of influencer marketing and celebrity partnerships. The brand claimed the number 4 spot in 2023, up from number 9, in 2020. 

Nike continues to reign supreme among Gen Z consumers, keeping its number 1 position in the mass market segment. The brand’s focus on influencer marketing has resulted in a 90% growth in MIV, underscoring the significance of this strategy in connecting with younger audiences.

Over the last three years, Crocs has also managed to transform from practical footwear to a bold fashion statement embraced by Gen Z. This shift reflects a broader trend of merging comfort with style, appealing to the younger generation’s desire for unique and expressive fashion choices.

Other mass market brands that saw remarkable increases in MIV over the last few years include Converse (+196%), New Balance (+131%) and Uniqlo (+207%). 

Gen Z Influencers and celebrities

Still, connecting with Generation Z isn’t just about tapping into their values; it’s also about collaborating with the right voices that resonate with their age and culture. The top 20 Gen Z-aged influencers have made a profound impact in 2023, driving fashion trends and brand engagement.

Among them, French influencer Léna Mahfouf has garnered global attention with her dynamic content and relatable personality. Over the past three years, she has experienced a remarkable 272% increase in MIV, reaching an impressive $67M in 2023. Léna’s ability to create viral content was showcased during the Cannes Film Festival, where just eight Instagram posts generated over $4.2M in MIV. Kylie Jenner was also recognized as a top Gen Z influencer, generating $63M in 2023.

The celebrity landscape saw a notable shift towards the Asia-Pacific (APAC) region in 2023, with K-pop groups like NCT, New Jeans, and Enhypen securing top spots in global rankings. This trend highlights the immense influence of Korean pop culture on fashion, underscoring the global appeal of K-pop music and performances.

Among the top celebrities, Avneet Kaur was recognized for generating $97M in 2023, alongside names like Dua Lipa, Becky G, and Dwayne Johnson who made up the top 20.