The Business of Fashion Podcast

Episode: Why Gen Z Isn’t Buying Luxury’s Story

Date: September 24, 2025
Host: Brian Baskin, Executive Editor
Guest Panel:

• Sheena Butler-Young (Senior Correspondent)
• Lei Takanashi (Reporter, BoF)
• Jessica Kwan (Gen Z Editorial Apprentice)

Episode Overview

This episode explores the evolving relationship between Gen Z and the luxury fashion industry, centering on why traditional luxury brands and narratives are failing to resonate with younger consumers. Drawing on reporting, personal experience, and generational perspectives, the discussion dives deep into Gen Z’s shopping habits, their valuation of luxury, shifting perceptions of branding, and what the future holds for heritage fashion houses trying to win over this crucial demographic.

Key Discussion Points & Insights

Gen Z's Changing Approach to Luxury

• Secondhand Over Storefront:

  • Gen Z, even those with luxury items, are rarely buying full price at boutiques. Instead, the majority shop vintage, resale, or wait for markdowns ([01:12]–[03:03]).
  • “According to him and a lot of his Gen Z cohort, full price luxury just isn't really worth owning right now. Prices feel out of whack, boutiques feel stiff, and the marketing feels more like a billboard than a conversation.” — Sheena Butler-Young ([01:12])
  • “You might not know that if you entered my closet and looked at some of the labels. I’m like most of my peers, shopping vintage and resale and at very heavy discounts.” — Jessica Kwan ([02:49])

• Data Backs the Shift:

  • The resale and vintage luxury market is growing faster than new luxury goods ([03:21]–[04:05]).
  • “Data from consultancies like Bain show that... used luxury goods is outpacing the sales of new luxury goods.” — Lei Takanashi ([03:21])

What is ‘Not Worth It’ for Gen Z?

• Price Transparency & Value:

  • Gen Z shoppers are price conscious and value-oriented, questioning the justification for luxury pricing given transparency from TikTok, YouTube, and social platforms ([05:30]).
  • “You know, this is a generation of consumers who've grown up with TikTok accounts... that's completely lifted the veil on just like how luxury products are made and what the quality of it [is]... they know they could find these alternatives. Some ... even just buy outright counterfeits because it's the cheapest thing out there. I don't think they care about all this mythological narrative.” — Lei Takanashi ([05:30])

• Distrust of Conglomerate Motives:

  • There is a perceived lack of care for heritage and quality, with luxury conglomerates viewed as profit-focused ([07:06]).
  • “There is a real ire or resentment among Gen Z around... very exorbitant price hikes in luxury that we've seen the past few years. I think we're a generation that cares a lot about value for dollar.” — Jessica Kwan ([07:06])

• Cultural Attitudes to Dupes and Authenticity:

  • Gen Z is more open to wearing knockoffs or dupes, associating status with online presence rather than physical ownership ([08:22]–[09:38]).
  • “People really want to flex for social media... buy something just to wear it once for a picture... ephemeral clout.” — Jessica Kwan ([08:55])
  • However, some still value designer intent and would rather not buy at all than buy a dupe ([08:55]).

Is This Just a Phase?

• Habits Become Permanent:
  • The panel agrees these habits are unlikely to fade as Gen Z gets older; value-seeking and vintage buying are likely to stick ([09:59]–[11:17]).
  • “The habits ... are likely going to be ingrained with them for the rest of their lives. This idea of always seeking value, always embracing things that are vintage... that's what they define as luxury.” — Lei Takanashi ([09:59])

Challenges and Strategies for Brands

• Heritage Narratives Losing Power:

  • Simply repeating stories about craftsmanship and history no longer works ([06:30], [11:28]).
  • Brands must show real evidence of value or unique craftsmanship, sometimes through making-of content or direct cultural relevance ([11:28]).
  • “When you explain... narratives that feel more like real... this is the actual craftsmanship... then you can maybe see videos of it online... I think that actually breaks through.” — Lei Takanashi ([11:28])

• Entry-Level Items as a Strategy:

  • Selling affordable “gateway” luxury items (like candles or bag charms) can prompt interest for later, bigger purchases, but the tactic has limitations ([15:04]–[16:34]).
  • “You kind of buy in and you're thinking, oh, what else do they sell? Maybe looking at the bags or the clothes at some point when I can afford those.” — Brian Baskin ([15:04])
  • Gen Z still scrutinizes these products for value: “For $400 I could just buy a purse at another brand that is still pretty solid quality instead of buying the small bag charm.” — Jessica Kwan ([15:49])

• Redefining Authenticity:

  • Gen Z is unmoved by aspirational, celebrity-driven campaigns; they prefer genuine, relatable, unscripted social media content ([16:34]–[19:25]).
  • “Celebrities... they've become very cringy. Gen Z finds a lot of merriment in making fun of the spectacle of celebrity, or we just don't care, period.” — Jessica Kwan ([18:05])
  • “The only luxury designer to actually resonate with me was Virgil Abloh... because of his commitment to just authentically highlighting all these subcultures... It was just like a very strong, worldly perspective of luxury fashion.” — Lei Takanashi ([17:00])

• Vintage and Resale Integration:

  • Brands should consider entering the secondhand/vintage market themselves, as it's already where their customers are ([19:34]–[22:35]).
  • Ralph Lauren is referenced as an example of a luxury house selling its own vintage ([19:34]).
  • “If the LVMH-owned companies of the world can figure out how to take control of their own resale, that could be a huge solution.” — Lei Takanashi ([19:34])

• Talent and Relevancy:

  • Brands need creative leaders who actually understand and represent Gen Z tastes, not just figureheads or celebrities ([19:34]–[22:13]).
  • Citing Virgil Abloh’s impact at Louis Vuitton, the need is for creative directors with genuine cultural resonance, not just familiarity with “what beautiful clothing looks like” ([19:34]–[22:13]).

Notable Quotes & Memorable Moments

• “[Gen Z] cares a lot about value for dollar. We grew up seeing concert tickets and thinking, okay, they're pretty expensive, but 10 years from now, surely I'll be able to afford that. And now they're upwards of $1,000.” — Jessica Kwan ([07:06])

• “You have to really explain to them why luxury costs the price it costs... you have to really prove that the price matches that point.” — Lei Takanashi ([11:28])

• “Gen Z finds a lot of merriment in making fun of the spectacle of celebrity, or we just don't care, period.” — Jessica Kwan ([18:05])

• “If [brands] try to make your luxury brand more down to earth, then there's a chance that it will start to feel even more ridiculous that the price point is the way it is. They're in a bit of a catch 22 there.” — Jessica Kwan ([22:35])

• “There's a sense of like a new era, even with Virgil [Abloh] being one of the first Black designers at the helm of a major luxury brand. Gen Z... still wants to buy into... a very important movement or wave.” — Jessica Kwan ([23:26])

• “I love this theory that the Imagine video single handedly killed the global luxury industry. I actually totally buy into it, Jessica.” — Brian Baskin ([18:48])

Timestamps for Key Segments

• Gen Z Luxury Shopping Habits: [01:12]–[04:05]
• Generational View on Price & Value: [05:07]–[07:06]
• Cultural Openness to Dupes: [08:22]–[09:38]
• Will Habits Change With Age? [09:38]–[11:17]
• Craftsmanship, Heritage & Storytelling: [11:17]–[12:56], [15:04]–[16:34]
• Authenticity & Influencer/Celebrity Marketing: [16:34]–[19:25]
• Vintage/Resale Market Integration Strategies: [19:34]–[22:35]
• Changing Creative Leadership: [19:34]–[23:26]
• What Would Convince Gen Z to Buy Luxury? [23:13]–[24:16]

Conclusion & Takeaways

The episode makes clear that Gen Z’s understanding of luxury is fundamentally different from previous generations. For them, authenticity, transparency, value, and cultural relevance outweigh heritage, price, or celebrity association. The challenge for luxury brands is to reimagine their narratives and business models — incorporating resale, hiring culturally tuned talent, and abandoning outdated notions of aspiration — to win over this critical cohort before their habits are fully entrenched.

As Jessica Kwan closes:

“I think Gen Z still wants to buy into and feel like they’re a part of a very important movement or wave. And I think if we were to see that again, I might be opening my wallet, calling up my bank.” ([23:26])

For Lei Takanashi’s full article and further reading, visit businessoffashion.com.