WWD and BCG teamed up to uncover what matters most to young fashion consumers and how leading brands are adapting to reach them. Their inaugural Future of Fashion Report offers a roadmap for success in a changing market, drawing on insights from over 9,000 consumer responses, 50,000 social posts, and executive interviews highlighting how brands are winning with Fashion’s Next Gen.

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Gen Z and Gen Alpha—together called fashion’s “Next Generation”—are rapidly transforming how the U.S. fashion industry operates. These cohorts are projected to drive more than 40% of fashion spending in the coming decade. Their preferences, values and shopping behaviors differ dramatically from older consumers, forcing brands to rethink everything from product design to marketing to retail execution.

A new report reveals five major shifts defining how these younger shoppers engage with brands—changes fueled by cultural dynamism, social influence, and the rise of AI-driven shopping tools.

Image: BCG

1. The Next Gen Plays by New Rules

Gen Z and Gen Alpha spend a significantly larger share of their budget on fashion—about 7% more than those 29 and older—while spending less on dining and travel.
With limited budgets but a strong desire for self-expression, they want clothing that feels:

• fun

• expressive

• stylish

• authentic

• socially influential

They want to stand out and impress their peers, but they are also more price-sensitive than older consumers, leading them to research extensively and comparison-shop to find the best value.

Key Takeaway:

They want expressive fashion at accessible prices—and they won’t overpay for it.

2. Heritage No Longer Guarantees Relevance

Traditional brand prestige means much less to this generation. Cultural relevance now determines whether a brand earns attention.

What captures interest today are:

• products that feel current and expressive

• authentic ties to youth culture

• fast response to trend cycles

• collaborations and creators that feel “of the moment”

Brands favored by Gen Z and Gen Alpha often gain credibility with older shoppers—but not the other way around. Youth culture now leads the fashion agenda.

Key Takeaway:

Relevance beats history. Brands must participate in culture, not rely on past glory.

3. Social Media Is the Center of Commerce

For younger consumers, social media is not just inspiration—it is where the entire shopping journey occurs.

Key dynamics:

• They are twice as likely as older generations to say influencers drive their purchases.

• Micro-influencers play a major role because they feel more authentic than celebrities.

• Viral product trends can flare up and fade within one to two weeks, demanding rapid brand response.

• Social platforms now allow seamless end-to-end checkout, removing friction from discovery to purchase.

Creator-led storytelling now outperforms brand-driven marketing. The result is a shift from traditional campaigns to real-time, creator-fueled product moments.

Key Takeaway:

Social commerce is the new engine of influence and conversion—and it moves fast.

4. AI Has Become a Core Part of the Fashion Journey

AI is reshaping how young consumers discover and evaluate products. About 40% of younger shoppers already use AI tools to:

• research trends

• explore new products

• compare prices

• receive styling guidance

• visualize outfits through virtual try-ons

High-spending young consumers use AI daily, making it a central part of their shopping routine.
This shift requires brands to optimize their product content, descriptions and digital presence for AI-driven discovery, where answers—not search results—become the new battleground.

Key Takeaway:

AI is becoming the new personal stylist and shopping assistant. Brands must adapt to stay visible.

5. Young Consumers Are Product-Driven, Not Brand-Driven

Unlike older generations who formed long-term loyalty to specific brands, these younger shoppers care most about:

• distinct, expressive products

• price

• quality

• resale value

• versatility for styling

They mix luxury with affordable brands and expect high-touch service—fit advice, styling, personalized recommendations—even at accessible price points.

Key Takeaway:

Strong products win. Quality and value drive decisions more than brand name alone.

Strategies to Win Fashion’s Next Gen

The report outlines five urgent strategies for brands:

1. Define the Next Gen Consumer Clearly

Know which segments matter most and build KPIs around them.

2. Invest in Youth Culture and Creators

Collaborations, cultural relevance and creator partnerships matter more than polished campaigns.

3. Embrace Creator Energy Over Brand Control

Let creators lead storytelling and commerce moments.

4. Prepare for AI-Driven Shopping Journeys

Optimize digital content and product information for AI discovery.

5. Focus on Fundamentals: Price, Quality and Value

Great value and strong product quality remain the biggest drivers of conversion.

Global Loyalty Organisation Take:

Gen Z and Gen Alpha are reshaping fashion through cultural influence, digital-first shopping behavior and rapidly evolving expectations. They demand personalization, authenticity, and value—while moving at the speed of viral culture.

Brands that adapt will capture the next generation of fashion spenders. Those that don’t risk becoming invisible.

The future belongs to brands that can move fast, show up authentically, leverage AI and creators, and—above all—deliver great products at the right price.

Source: BCG