Gen Z shoppers buy luxury items more frequently to reward themselves. They care about being unique, have a relatively higher interest in trendy seasonal items and niche brands, and are a lot more open to buying second-hand and vintage luxury products.

They also spend more of their disposable income on luxury goods. In fact, in the 12 months leading up to the survey, 18% spent more than a fi fth of their disposable income on luxury goods. Comparatively, only 3% of existing shoppers did the same.

Gen Z luxury shoppers prefer niche brands over well-known ones at more than twice the rate of luxury shoppers aged between 26 and 35 years old, and at fi ve times the rate of those aged over 35 (see Exhibit 2). They are also more attracted to styles that are trending now than classic styles. “It’s very obvious,” said a Shanghai-based sales assistant. “Younger customers are more open to buying our seasonal styles and care less about value preservation. Older luxury spenders only want timeless pieces.”