Gen Z in Emerging Economies: Redefining Luxury. How the Next Generation is Shaping the Future of Luxury and Jewellery Markets
Gen Z in Emerging Economies: Redefining Luxury. How the Next Generation is Shaping the Future of Luxury and Jewellery Markets
Credits: Eugenio Marongiu aka Katsukokoiso @katsukokoiso.ai
As the Gen Z cohort establishes its stronghold over luxury markets in the emerging economies like Africa, India, China, Asia Pacific, and Brazil, their influence on how luxury and jewellery brands make decisions is increasingly profound. This generation is shaping new consumer values and preferences that luxury brands must adapt to in order to stay relevant, as their spending power increases and is anticipated to dominate 70% of all luxury purchases by 2025, according to Bain & Co. Luxury brands face a challenge as Gen Z’s values differ significantly from those of previous generations.
Credits: Arturo Arvizu @arvizu_art, Eugenio Marongiu aka Katsukokoiso @katsukokoiso.ai
To attract and retain these consumers, brands must shift away from traditional luxury concepts like status, legacy, prestige, and heritage. Instead, they need to embrace new values such as inclusivity, sustainability, transparency, technology, and circular innovation. According to Euromonitor, Gen Z is the largest demographic in India, and by 2040, Gen Z (and Generation Alpha) are expected to comprise 56% of the country’s consumer base - and they’re changing the way luxury is purchased. Experts predict that in the coming decade, they will increasingly make their purchases at home - signalling widespread shifts to the retail industry.
Credits: EÉRA @eera, OHLIGUER @ohliguer
The Chinese Gen Zs, 80 million in strength, are gravitating towards new designers and tech driven smartwatches over traditional ones. This trend offers a unique opportunity for brands that can balance appealing to this younger audience while preserving their appeal to older, loyal customers. In China’s dynamic luxury market, success hinges on brands’ ability to adapt and cater to the shifting preferences of the younger generation, where localization and innovation are crucial in meeting the evolving demands of Gen Zs. All luxury and jewellery brands in every emerging economy, including APAC markets, need to diversify their strategies to strongly reflect the ideals of Gen Zs, in order to safeguard their growth in the near future.
