The Psychology of Fashion: How to shape Gen Z’s Wardrobes

By: Isabel Treidl

October 20th, 2023

Sources: https://www.lovehappensmag.com/blog/2020/11/18/ever-wonder-where-luxury-fashion-brand-logos-came-from/

During the past 7 years I have been in direct contact with the fashion industry due to my role as instructor and Chair of Professional Development at the Fashion Institute of Desing and Merchandising University in Los Angeles. Here is my take of luxurious brands and Gen Z with a psychological perspective. Status in society has traditionally been based on birth or social hierarchy. However, a significant shift occurred during the 18th-century Age of Enlightenment, where a person's worth became tied to their accomplishments and the wealth generated from these achievements (Han et al., 2010). Merit and success became intertwined, with high-paying jobs awarded based on intelligence and ability. As a result, affluence became a marker of social status, and the connection between wealth and status has persisted since. Economist and sociologist Thorstein Veblen argued in his classic work "The Theory of the Leisure Class" (1899) that status isn't primarily conferred by the accumulation of wealth but by the ostentatious display of wealth, a behavior he termed "conspicuous consumption"(Vernon, R. (1974). Thorstein Veblen noted that the leisure class often used costly silverware, hand-painted China, and luxurious table linens during meals, not solely for their practicality but to demonstrate their ability to afford these extravagant items. Connected to conspicuous consumption is a facet of consumer behavior that is oriented towards status and motivates individuals to buy and use products not for their inherent utility (i.e., their practical functionality) but for their external intangible factors like prestige, exclusivity, and perceived quality (Bagwell and Bernheim 1996; Han et al. 2010 ) Extensive studies have investigated the reasons behind individuals' pursuit of luxury goods, revealing that these products can enhance self-esteem, convey one's self-identity, reflects believes such as political inclination (Ordabayeva & Fernandes 2018) and indicate social status. Current marketing research acknowledges that possessions play a symbolic role in consumers' lives, as established by previous studies (Belk 1988; Levy 1959; Solomon 1983). It's generally agreed upon that individuals draw conclusions about others based on their belongings (Belk, Bahn, and Mayer 1982; Burroughs, Drews, and Hallman 1991; Richins 1994). Several fundamental trends within the luxury sector, such as wellness, personalization, and a focus on localism, thrived (Vinjamuri, 2021). Luxurious brands play with the strategy of scarcity, psychology but also social status, and pressure, leading sales during a time of hardship. In contrast to austere times, luxury brands have experienced significant growth in recent years, with 2020 setting a record at €345 billion. This growth has made Bernard Arnault, the CEO of LVMH, the wealthiest person in the world. Unlike millennials, who began spending on luxury items at ages 18-20, younger generations like Gen Z are entering the luxury market at ages 3-5 years younger (Vitorio, 2023). For these generations, luxury products are seen as a means of self-expression, which is the ability to customize company offerings to reflect an individual’s personal preferences (Na’amneh, 2021). As a result, companies are capitalizing on this trend by utilizing social commerce, working with influencers, and leveraging their channels to strengthen their brand presence and boost sales (Vitorio, 2023). This tech-savvy market considers the internet and AI as commonplace rather than novel. Therefore, luxury brands should integrate cutting-edge technologies to convey their message more effectively and reach their target audience through their communication channels and also to optimize their buying practices (Mimi, interview- 2023).

When contemplating the future, it's crucial to stay connected with consumers and return to our origins, recognizing that at the core of it all, it's the human factor that truly motivates us. This is where the concept of self plays a pivotal role. According to psychologist Carl Rogers, it is a person's self-beliefs, encompassing their self-perception and self-image. Research has shown a strong link between self-concept and luxury brands, with consumers often buying luxury items to enhance their self-image, reflecting their current self-perception (actual self) and the image they aspire to project (ideal self) and luxury items play a role in allowing individuals to express these aspects of themselves, influencing their purchasing decisions (Abdu, 2023). Howevre, the customer experience, the temple vibe, and exclusive circles (Espinoza, 2014) are not enough; since there is a new paradox for companies in this field due to Gen Z have different values compared to previous generations. To attract and retain Gen Z consumers, luxury brands must transition from traditional notions of luxury, like status and heritage, to embrace values such as inclusivity, sustainability, transparency, technology, and circular innovation (Wang & Griskevicius, 2014; Wang et al., 2023). Mimi who is the Director of Merchandising & Marketing at FIDM, and a former buyer at Christian Dior in New York City, said during an interview: “Customers do not buy products, they buy brands, stories, and better version of themselves’ it is never about the product, it is the story you are telling” affirms Mimi Su, she experienced first hand the power of storytelling and narrative transportation (Green & Brock, 2000 ; Lamberton et al., 2023). The luxury market needs to adopt a more responsible approach by crafting messages that genuinely align with the preferences and principles of their consumers. It's important to understand that the message isn't just about exclusivity but also about enabling self-expression.

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