Are Luxury Brands Losing their Appeal with Generation Z?

By Asha Johnson, Senior Writer Edited by Savannah Stewart

Luxury brands have created core branding for themselves and remained at the forefront of fashion for decades. However, they are beginning to lose the appeal that they once had. The ethos of many luxury brands is not translating to younger generations, causing a disconnect between these labels and Gen Z to become more apparent, according to Business of Fashion. This distance makes it more challenging for the brands to adapt to young consumers’ wants. Luxury brands have often been symbolic of wealth. Though some luxury brands rely on logo-heavy branding to present themselves as markers of exclusivity, others achieve the same status by emphasizing rarity, craftsmanship and a commitment to heritage. This distinction is crucial right now. The old model of selling exclusivity through a recognizable logo has become diluted, mostly due to a powerful shift in who is buying. However, this branding poses a problem for the luxury market because Gen Z has increased their buying and spending power, especially within fashion. According to the Boston Consulting Group, Generation Z’s luxury spending is expected to grow to 25% by 2030 from being only 4% before 2020. As these once-exclusive, logo-driven items become widely accessible to a larger segment of shoppers, the visible status symbol loses its special feeling and, to the new consumer, can even be perceived as tacky.

Gen Z’s values in the luxury landscape focus more on environmental awareness and personal style. We often seek out vintage or second-hand clothing, which has driven the massive growth of the pre-loved market. This broader sourcing goes beyond just saving money; it ties to younger consumers wanting to build wardrobes that reflect personal style and unique quality, a contrast to the mass-market branding of logos. This discerning nature means Gen Z is keenly aware of a product's price versus its true value. As luxury brands keep raising prices, many young shoppers feel the cost is simply unjustifiable, especially when the perceived quality or materials don't meet their ethical standards. The willingness to hunt for dupes or knock-offs often signals they want the aesthetic look, not the brand's status. This pursuit of the look over the label further chips away at the value of the original, high-priced item.

The marketing failure of some heritage brands often stems from feeling impersonal to Gen Z consumers, especially when compared to those who have successfully adapted. Gucci, for example, is struggling. Its parent company Kering lost 43% of its value over the past two years, labels like Miu Miu and Loewe are outperforming the market. Loewe’s sales rose 49% in the first half of 2025 by capturing first-time luxury buyers with smaller, accessible pieces, like leather bag charms. This success proves that Gen Z craves the ability to buy into an identity that supports their personal style and self-expression, rather than one that demands conformity. This market insight provides a clear roadmap for other houses looking to rebuild relevance, as demonstrated by the turnaround at Coach.

Coach has completely reinvented its appeal. It successfully pivoted from being perceived as a brand for grandmothers and middle-aged mothers to a beloved favorite by strategically shifting its identity toward "expressive luxury," directly embracing Gen Z's focus on personal style and authenticity. The brand capitalized on the Y2K trend, which drove young audiences to seek out vintage Coach accessories at approachable price points, and enhanced this with personalized elements like bag charms to encourage playful customization and self-expression. Furthermore, Coach demonstrated a commitment to sustainability by introducing Coachtopia, a sub-brand focused on circular craft and products made from recycled materials, directly addressing Gen Z’s demand for environmental awareness. Through targeted social media campaigns and ambassadors like Elle Fanning and Charles Melton, Coach successfully promoted a message of "Courage to Be Real." These strategic changes have paid off significantly: more than two-thirds of Coach's new customers in North America are now Gen Z and millennials, proving that the expressive luxury strategy are the new drivers of luxury success.

The disconnect between heritage luxury brands and Generation Z is clear: the traditional model built on high cost and logo status is being replaced by a demand for authenticity, personal style, and transparency.This shift is amplified by a crucial economic reality: unlike previous generations, many Gen Z consumers do not yet have the disposable income to sustain the legacy luxury market's reliance on first-hand, full-price purchases.

To regain dominance in this evolving market, brands must fundamentally shift their focus to quality and circularity. This means they must strive to create high-quality items that justify their price tag and demonstrate commitment through material transparency and sustainable practices. Consumers are now acutely aware of quality failures; echoed by the public frustration of influencers. For example, fashion influencer Wisdom Kaye took to social media after spending $18,000 on Miu Miu apparel explaining that after trying on a denim vest, the buttons had broken off, showing how quickly shortcomings can damage a brand’s reputation and overall earnings. Gen Z's interest is not about rejecting luxury style entirely, but about being inspired by it while choosing sustainable, quality consumption. This drives them to the thriving secondhand market, where they can find archive pieces that often prove to be more unique and sustainable than current-season items. Luxury houses must formally invest in pre-loved systems to meet this demand for circularity and accessible quality. Ultimately, success stories like Coach and Miu Miu prove that the future of luxury lies not in selling a badge of wealth, but in creating a durable, unique piece of personal style that appeals to self-expression and individuality. 

This economic pressure drives Gen Z to be inspired by luxury but choose sustainable consumption. Their search for value has fueled the thriving secondhand market, where archive pieces are often more unique and sustainable than buying new. This market is invaluable because it keeps heritage brands visible without compromising Gen Z's core values of authenticity and quality. The future of luxury doesn't lie in fully selling a badge of wealth, but in creating durable, unique pieces that appeal to individuality through systems that support accessible quality.

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