A significant shift in shopping habits is taking place among Gen Z, with 66% of this demographic now prioritizing second-hand purchases, according to the latest insights from Pion’s Youth Trends Report 2024. The report surveyed 4,000 individuals and revealed that while 90% of Gen Z remains loyal to their favorite brands and retailers, many are increasingly focused on sustainability and mindful consumption.

The “under consumption” trend, particularly prominent on platforms like TikTok, encourages users to repurpose existing items and consume less. This movement not only promotes sustainability but also presents a challenge for retailers trying to engage Gen Z consumers, who are becoming more discerning about their purchases.

Growing awareness of the environmental impact of overproduction is fueling this trend. Many young consumers recognize the need to reduce their carbon footprints, viewing sustainability as a social responsibility rather than just a fleeting trend. Pion’s findings indicate that 83% of Gen Z has reduced non-essential spending this year, raising concerns for brands that don’t cater to second-hand shopping.

Furthermore, 77% of Gen Z shoppers are more likely to support brands that prioritize sustainability. Brands like Patagonia have long championed “conscious consumerism,” encouraging customers to buy less and repair their items, while Levi’s promotes durability and second-hand options.

Interestingly, luxury brands are also feeling the effects of this under consumption trend, with some reporting declining sales as younger generations lean towards second-hand shopping. In response, several luxury labels are partnering with upcycling businesses, such as Circle of Style, to highlight their commitment to sustainability.

Platforms like TikTok Shop are creating new opportunities for luxury brands, allowing users to easily shop for new or pre-loved items, which appeals to younger consumers who may be hesitant to visit traditional boutiques. Pion predicts that by 2035, Gen Z will represent 40% of the luxury goods market.

As younger consumers increasingly reject the practices of fast fashion, luxury brands that prioritize ethical sourcing are gaining traction. Leah Doyle, insights manager at Pion, identifies three key strategies for brands to engage this evolving market.

First, transparency is vital; brands should cultivate meaningful marketing narratives that align with consumer values, sharing their sustainability journeys and authentic customer stories. Second, brands should embrace the circular fashion economy and resale market as opportunities to connect with younger shoppers, exemplified by initiatives like Selfridges’ Reselfridges program.

Lastly, Doyle emphasizes the importance of integrating eco-friendly practices into operations and production. For Gen Z consumers focused on under consumption, durability and quality are paramount, with 66% stating that poor quality is a dealbreaker. Brands that prioritize ethical practices and offer lasting products stand to capture the loyalty of this conscientious generation.