Is Gen-Z given the right credit for their role in the fashion and luxury industry?
When thinking of luxury, Gen-Z might not be the first generational group that we associate it with. However, underestimating its value, both as a consumer and employee, would be foolish. LVMH seems to have grasped this concept well, as they announced in September that their goal is to recruit 25,000 under the age of 30 by the end of 2022, increasing by 20% their hiring target compared to previous years.
Karin Raguin, vice president of talent management and corporate responsibility at LVMH North America, defined this as their “regional strategy to amplify the support to the next generation”, clearly establishing their aim of wanting to “recruit now, but also to recruit for the long run”. To create an actual training program, however, there needs to be a prospect of future advancement even for their lowest-ranking employees. Long gone are the days when fashion companies could lure in heart-eyed junior employees to fetch coffee in exchange for low paychecks and no future of industry connections. These initiatives, as said by Lisa Butkus, partner and head of the retail and luxury goods practice at Hanold Associates, would meet Gen-Z and Millennials’ demands to “see and feel that a company is investing in them”, and managing expectations is key to build any type of loyalty from their side. Butkus added that in the long run, this will “save companies from having to constantly look externally for talent or having to recruit and react in a market like this”.
But why is so much free space being made for Gen-Z?
The main counterargument made by luxury brands to shifting the focus to Gen-Z is that “these are not our customers yet”. However, underestimating the speed at which they will become customers is risky. Bain and Company estimates that Millennials and Gen Z-will contribute 130% of market growth between now and 2025. If brands were to adapt to this cultural shift, they would have to adhere to what Gen-Z values most: uncompromised authenticity. Indeed, according the BoF and McKinsey’s State of Fashion Report 2021, 9 out of 10 Gen-Z consumers believe brands should detail their stances on environmental and social issues.
Anaheta v. Berengerg, Zalando’s Designer’s buying director, while sharing her insight on retail channels and how to engage Gen-Z shoppers, stated that “interacting with brands that they believe are addressing environmental and ethical or social issues continues to be super key for [the Gen-Z cohort]”, meaning providing them with full transparency in their “shopping journey”. Undeniably, however, there is a certain incongruity between the socially and eco-conscious Gen-Z and the significant percentage which buys from fast-fashion pillars such as Shein and Boohoo.
The reason for this is simple: it’s cheap. Buying from sustainable brands which still appeal to the aesthetics a teenager looks for can be out of reach. For example, dresses sold by Reformation, a successful sustainable brand, can reach up to $250, and as Tahirah Hairston, fashion and beauty director at Teen Vogue, said, “a Reformation dress is an impressive investment piece when you’re 17”.
Given these considerations, could following LVMH’s example in the trust and employment of Gen-Z, providing thorough training programs aimed for long-term success, be the first step in reducing fast fashion?
By Tesa Djordjevic
