Luxury brands refocus on Gen Z as market potential grows

Luxury brands are shifting focus back to Gen Z, who could make up nearly a third of luxury purchases by 2030, according to Bain. After the pandemic, many brands prioritized wealthy clients, leading to a significant loss of younger consumers. To regain Gen Z's interest, brands are adopting a "high-low" strategy, offering affordable products like beauty items. Successful examples include Prada's $50 lip balm, which gained popularity through social media and celebrity endorsements. The secondhand luxury market is thriving, reaching $47 billion in 2023, appealing to Gen Z's interest in vintage and sustainability. Luxury brands are encouraged to explore collaborations and secondhand initiatives to connect with younger shoppers while maintaining their exclusivity.