A lifestyle or fashion brand looking to optimise its luxury marketing strategy for success among younger shoppers in 2026, would do well to heed the warning provided by one recent survey of Generation Z consumers. 

The poll in question is the work of a linkup between the audit, tax, and consulting adviser RSM UK and the independent economics consultancy, Retail Economics. 

As reported by the FashionNetwork website, the research discovered that 34% of people in this cohort, if presented with an unexpected £1,000 windfall, would “save or invest” instead of spending it. 

Even among those willing to spend such money, the findings indicated that many Gen Zers would choose “experiences” over “luxury goods”. 

Certain tendencies are apparent across Gen Z – but there are risks in generalising 

Some 1,500 people aged up to 28 years were questioned for the study, which found that customers in this age group were “planning for the future and are less reckless with their cash”. 

As for when these younger consumers do opt to spend, it seems that experiences are often a higher priority for them than possessions. The poll found that around 14% of the windfall would go towards a major trip or event, whereas only 12% would be used to buy luxury goods. 

Also apparent in the findings, however, was that Gen Zers are a more complicated and multilayered group than high-end brands sometimes perceive them to be. 

Indeed, FashionNetwork highlighted that Gen Zers are not just one group, but four – including: 

• “Future flexers” (43%) with a tendency towards ambition and pragmatism, and a focus on building financial security; 
• “Experiential explorers” (24%), who are sociable and moderate, with an inclination to prioritise experiences and social occasions; 
• “Trendsetters” (17%), who are the most affluent subcategory of Gen Zers, and particularly image-conscious and socially connected; 
• “Budget loyalists” (16%), who are the youngest and the most constrained Gen Zers in terms of their financial resources. Unsurprisingly, then, they are practical and value-driven, with an interest in getting the most out of every pound. 

Younger consumers are “disciplined” and “pragmatic” spenders, but still a “powerhouse” 

RSM UK’s head of retail, Jacqui Baker, described Gen Zers as “often socially savvy, resilient and disciplined shoppers who take a pragmatic approach to spending”. 

She added, however, that the ongoing cost-of-living crisis impacted on this age cohort too, “so saving for the future ultimately comes first.” 

Nonetheless, Retail Economics said Generation Z was still a “spending powerhouse”, expected to drive more than £26 billion in retail expenditure during 2025 alone. The economics consultancy added that this figure was set to rise to nearly £40 billion over the next decade. 

In light of Gen Zers’ expanding influence, Baker advised that “to avoid missing the mark with this spending powerhouse, retailers must focus on winning the trust of these consumers, while capturing loyalty through relevance, authenticity, and innovation.” 

For a more detailed and wide-ranging conversation about what this could look like for your prestige brand’s luxury marketing strategy heading into 2026, please don’t hesitate to contact our UK-based, but globally minded digital agency at Skywire London. 

Photo by Ummano Dias on Unsplash