Gen Z and their Impact on Sustainable Luxury Fashion

As a team, we first believed that only Gen-Z consumers in the high-middle to upper-class would seek out premium fashion. This may be the case, but by doing so, we excluded a far larger population who may also have important information.

To combat this, we distributed a screener survey to several Gen-Z members, asking them about their interests in and purchasing patterns in luxury fashion.

What we discovered was very interesting;

First, a participant consensus indicated that rapid fashion was undesirable or at the very least was seen unfavourably. Although Gen-Z consumers do not currently consider sustainability when making purchases, they would rather not support the fast fashion sector. 72% of participants wished to own a luxury item (if they did not have). However, the cost remained a barrier, with the majority receiving expensive gifts.

We conducted one-on-one interviews with the 20 survey respondents who were most pertinent to the development of our conclusions.

When we looked more closely at the price point, we discovered that Gen-Z was happy to purchase luxury goods — but only at a discount — and that they were more impressed by a good deal than by paying a high price. One guest was especially thrilled to share with us a recent Burberry deal she found at a vintage fair.

We identified that as a circular platform we could find Gen-Z to be a great target market for growth.

Community — User Interviews

We interviewed 15  participants through zoom. At Galore we wanted to add a community feature to our already-existing digital passport. In the digital passport, users would scan the NFC tag hidden inside the lining of a handbag they had rented or purchased. They then have access to the digital passport portal, which contains a wealth of essential data including service histories and care instructions.

 

Galore Primary Research

The general trends we found in our community-focused research were fairly diverse.

Although the two audiences (current and gen-z) had different views on publishing images, they both thought that the existing prototype did not incentivize the use of the digital passport.

After discussing the constraints of blockchain technology with the client and their blockchain specialist, we wanted to make sure that any proposed solutions were workable.

Finally, it was crucial to remember that our solution needed to primarily serve the current target population while also taking Gen-Z into account.

Authentication — Usability test

As a specialist in the resale of luxury handbags, thus verification is crucial to provide customer confidence. At Galore we employ a 24-hour digital authentication to authenticate goods using pictures that the seller sends.

What we needed to find out was — How do people really feel about this process?

 

Galore Authentication Process

When we first showed the participants the current design, some of them expressed doubts about both the credibility of the brand and the process. Users were concerned about — Who’s authenticating the bags? Who will take responsibility if things go wrong?

From our research, the value of testimonials and word-of-mouth from outside sources mattered greatly to our participants. Participants also wanted to know how long the process would take at each stage. If something goes wrong, who will be held accountable? What details do I need to provide? The significance of visible third-party verification that is also incorporated into Galore’s branding to avoid feeling incongruous.

In addition to embracing the prevailing "if-you-know-you-know" fashion aesthetic, timeless vintage bags have been gaining favor among Generation Z, who have increased their spending in this category by 40% over the past year. According to Skoda, this generation is on the hunt for what can be considered a holy grail item, and this pursuit is a significant source of pride. The growing popularity of this "thrill of the hunt" mentality has led to a scarcity of vintage bags in the market, driving up their resale prices. Despite these rising costs, Generation Z continues to invest in them.

Notably, the Chanel classic flap bag and Fendi Baguette are the preferred vintage bag choices among younger buyers. The second-hand market enables Generation Z to access high-end pieces that might otherwise be financially out of reach at full retail prices. This accessibility is particularly evident with the availability of less expensive "fair condition" bags. As Skoda points out, even if someone cannot afford their desired Chanel bag in pristine condition, they can still acquire it in fair condition. Therefore, while the resale market is making luxury more accessible, the inclusion of fair condition items within resale takes this accessibility to the next level.