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Luxury gets lit

With social media fundamentally changing the relationship between Gen Z and luxury brands, how can high-end fashion companies once again reconnect with younger consumers? Brittany Golob investigates.

The relationship between luxury brands and their audiences has fundamentally, seismically shifted.

Traditionally, brands – particularly those in the luxury and premium space – built immersive, engaging worlds that blended aspiration with authenticity. The aim was to speak to the consumer and inspire emotional engagement, passion and brand advocacy.

But now, something is literally and figuratively standing in the way of brands: social media. Recently, stories abounded examining the phenomenon of ‘dupes’ – or duplicates of branded goods. Dupes varied from counterfeit luxury items to supermarket or high street retailer branded goods designed to mimic the high end. For Gen Z, dupes are not only accessible, they’ve become desirable in and of themselves. And the culprit is social media.

Consumers are turning to their communities on TikTok, Instagram and beyond to create a lifestyle aesthetic, often including or even championing dupes. Marketing agency Pion’s ’2024 Youth Trends Report’ indicated that over half (52%) of British and American Gen Z consumers would purchase from a brand that was deemed ‘aesthetic.’ Similarly, consumer insights agency MTM’s ‘The Great Unwokening’ highlights a number of aesthetic trends capturing the imagination of Gen Z, many of which are changing the traditional narrative and perception around femininity and masculinity.

For luxury brands, social media acting as an intermediary in the brand-consumer relationship will force their brand strategies to adapt. To keep connecting with younger consumers, they will have to identify what those Gen Z consumers want and change their brand images and tactics in response.

“Gen Z’s lack of emotional connection to luxury brands plus their practical approach to spending have led to a broader acceptance of dupes,” says OJ Deady, co-founder and managing partner of creative agency Twelve A.M. “Their preference stems from the failure of traditional advertising to evoke an emotional connection to the brand. If brands don’t enhance emotional connections with this generation of consumers, there is little incentive for consumers to go back to the original.”

He adds, “It’s the biggest shakeup in the luxury industry for a long time.”

Gen Z demands different

In the early 2000s, Burberry suffered a dip in reputation and perception when its brand proliferated and counterfeit goods flooded the market. Its associations with street culture forced it to take a hard line against dupes. In June, it won a copyright infringement case against a Chinese retailer producing counterfeit items. This is typical of the hard line taken by luxury and premium brands to protect their intellectual property. The assumption is that luxury should remain aspirational. If it becomes commonplace, it won’t be able to command as high a reputation – or price point.

But Gen Z is forcing changes in luxury brand management.

‘The Great Unwokening’ report examines the culture and values of this demographic. The report documents a pervading loneliness and desire for connection. After the pandemic disrupted Gen Z’s university years and early working years, the demographic is now seeking alliance and connection. “Looking ahead, Gen Z’s primary motivation in life will be locating a sense of shared purpose, and in turn decentring gender,” the report says. Trends like clubs, soft femininity, (redefined) alpha masculinity and positive health activities pervade.

Emma Glenn Baker is the host of the Stargirl podcast which examines prominent women through a lens of self-awareness, body image, celebrity and most of all, understanding the patterns that shape modern girl culture. She says Gen Z is finding ways to connect through their interests, values and passions; but that connection must be authentic and often comes with a sense of vulnerability. Baker herself puts her own thoughts out there to connect with listeners.

She says brands that don’t insert themselves into the culture – like those that use slang on billboards – but actually transform their brand ethos into something authentic and relevant to a specific audience are those that connect more with young people.

Mother Design’s senior art director Katherine Jenkins says Gen Z consumers are quick to suss out brands that don’t represent themselves authentically. She says many luxury brands are focusing their recruitment efforts on Gen Z talent to ensure they connect with this burgeoning customer group.

Kim Kardashian’s Skims shapewear brand is one that seems to be succeeding. Its recent partnership with the WNBA connected with consumers. Los Angeles Sparks’ Cameron Brink said in a press statement, “My fans know how much I love fashion. Skims has been an underwear staple in my wardrobe for years… It’s truly a dream come true to be working with a brand that I love so much.”

The brand also partners with the NBA, offering a new perspective on shapewear in men’s fashion and sport. MTM’s director of cultural insights and trends, Marina Graham, says, “Moving beyond traditional gender-first marketing, brands can connect with this generation by focusing on shared values like community and acceptance.”

Reputation management

This change in the way brands are engaging with Gen Z consumers is also apparent as they seek to protect their reputations in the face of dupe culture. Rebecca Robins, a global brand expert and best-selling author, has extensive experience analysing the luxury brand space. She says, “With the proliferation of ‘dupe culture,’ there’s a rise in brands taking more immediate ownership of the challenges.”

She points to light designer Tom Dixon’s ‘dupe-defying’ strategy of creating the Unbeaten line of lamps. Designed specifically to cut the knees out from under the counterfeit market, Unbeaten was also a transparent story of showcasing vulnerability and authenticity.

Luxury and premium brands are actually in a strong position to tackle dupes. They can rely on quality and craftsmanship. Not only does that help sway consumers, it indicates that they are open, honest businesses. Tom Dixon’s vulnerability – its truthfulness about how its products might be more expensive than dupes, but of a higher quality and from more responsible sources – was an example of this.

Premium lifestyle brand Lululemon took a bold step with regards to dupes. Its ‘Dupe Swap’ event actively encouraged anyone who had purchased a counterfeit item to bring it in for an exchange with an authentic product. An email to potential swappers championed the quality of official Lululemon products versus knockoffs.

Jenkins says the dupe discourse is fuelling creativity in a way. Some brands – like Lululemon and Tom Dixon – are coming up with unique ways to fight dupes. Others are leaning into the fray. “Miu Miu always creates the silhouette of the moment. In its SS22 show, the brand showed micro mini-skirts with cut off hems, layered with tights peeking over the top, which has prompted many TikTok videos on how to do it yourself,” Jenkins says. “There could be a positive opportunity to be had from dupes, if a brand can form an allegiance with a customer. Even if that customer can’t afford the latest offerings, they will form a positive association with the brand, potentially leading to a future customer.”

Deady says, “In response to Gen Z, luxury brand marketing is being redefined to a focus on connection that transcends the transactional. By shifting practices to creative storytelling and the empowerment of local voices, luxury brands are starting to create emotional connections with this powerful new generation of consumers.”

He says hyperlocal brand storytelling is key to achieving this. He gives the example of Tiffany’s six-city launch event for its ‘Lock’ campaign. “It ties back to strong storytelling and creating connections. Digitally native Gen Z consumers are natural storytellers, who are personally invested in the talent they themselves discovered on YouTube and TikTok and whose journeys they have followed since before a brand deal came along. Continuing that personal connection and narrative is fundamental for luxury brand partnerships today.”

Action versus reaction

Brands are having to think carefully about how they insert themselves into contemporary culture, but there’s still an opportunity for luxury brands to continue to shape culture themselves. “We’re still trying to figure out how we’re going to portray ourselves,” Baxter says of modern young women. She points to the way femininity is changing as young women are becoming more self-aware, bolder and more honest with themselves and society. Her podcast is an encapsulation of that.

She says, “Anyone that's spends a lot of time online is constantly aware of different warring tribes and trying to figure out: which one do I feel an allegiance to? Or which one am I going to claim allegiance to even if internally I know it's not quite right, but I want to belong somewhere and see myself somewhere?” Gen Z consumers are actively engaging online with these questions of identity. Brands that can avoid inserting themselves inauthentically, but tap into points of connection, will be those that capture the imaginations of young people.

Robins advises that brands “in the relentless pursuit of staying relevant and present” should become “more participatory and playful with their fans and consumers.” She says brands that act with confidence are inspiring consumers. Her analysis of the demographic landscape informed her new book, ‘Five Generations at Work: How We Win Together, For Good.’

Gen Z is rapidly becoming a powerful demographic, not just in terms of influence, but in terms of financial means. In Britain, three-quarters of Gen Z’s spending is on fashion, compared with 65% of Millennials’ spending, according to Clearpay, and that’s only set to rise as the youngest of the cohort joins the workforce.

Robins says the needs of this generation will still need to be balanced with the needs of the brand. She says, “For all brand owners, protecting your intellectual property is still vital. It's part of the very premise of a brand. What's changing is the consumer context and how brands are finding new ways to engage.”

Jenkins agrees that brands are finding new ways to meet the needs of Gen Z, “My hope is that brands foster and champion younger designers, creators and artists, both in-house and externally, welcoming them onto their platforms. When the right team is in place then the marketing and brand strategy will follow suit and feel authentic to their customer base.”

While the relationship between luxury brands and their audiences might have undergone a realignment, it’s nothing that a creative, vulnerable approach to reexamining their brand strategies can't change. If anyone is up to the challenge, it’s luxury brands.