Opens in new windowFashion brands have long courted young consumers, but 2025 could mark a turning point. As economic pressures mount, younger shoppers â often the most financially stretched â may no longer be the reliable growth engine they once were.
More than half of Gen-Z consumers are worried about their financial situation in the year ahead. In response, young shoppers in the US are changing their spending habits, including around 40 percent spending less on clothing. In the UK, 70 percent of Gen-Z are prioritising affordability when buying clothes. In the US, 73 percent report changing spending habits because of increased prices.
Gen-Z also uses credit more than other generations. In the US, 15 percent of Gen-Z credit card users had maxed-out borrowing in the first quarter of 2024, more than any other generation.
On top of this, Gen-Z is the least loyal fashion consumer cohort.
Gen-Z consumers prefer to shop across multiple brands, often in search of the latest trends. On average, only 29 percent of their wardrobe is from the same brand, compared to 52 percent for those aged 50 and above.
Younger shoppers in the US are 15 percentage points more likely to explore different brands compared to older generations. Similarly, Gen-Z in the US and China are both 9 percentage points less likely to care about the brand of clothing they buy if they like the style.
The share of Gen-Z consumers in the US and China who reported switching to cheaper fashion brands in the last 12 months was 10 percentage points higher than older generations.
Competition for younger shoppersâ wallets will increase, despite existing saturation
Young consumers feel overwhelmed by the volume of brands they are targeted by. 80 percent of Gen-Z shoppers say they feel they are exposed to more brands and adverts than any other generation.
Yet Gen-Z and Millennials remain the prime focus for many fashion brands. In 2025, approximately 60 percent of fashion executives plan to double down on these consumer groups, which are twice as likely to be targeted than older generations; 29 percent of executives say they plan to target Gen-X and 14 percent say they plan to target Baby Boomers.
Meanwhile, there is a growing âSilver Generationâ cohort of fashion customers
Longer life expectancies and declining birth rates are pushing the global population of people older than 50 to grow faster than any other cohort. In 2020, the Silver Generation aged over 50 represented 25 percent of the global population. By 2050, they are set to represent more than a third.
This trend is starker in advanced economies. In the US, the share of the population aged over 50 will reach 37 percent in 2025, growing to 42 percent by 2050. More than half of the population will be aged over 50 in China and in the EU5 (France, Germany, Italy, Spain and the UK) by 2050.
Even emerging markets with relatively young populations will see their older cohorts grow. In India, for example, consumers aged over 50 will grow from 20 percent in 2020 to 34 percent in 2050.
The Silver Generation is disproportionately wealthier and spends more on fashion
Thanks to years of accumulated wealth and steady incomes, older generations have more disposable cash to splurge on fashion. Those aged 55 and over in the US accounted for 72 percent of wealth in early 2024 â and that share is increasing each year. In the UK, the median total wealth belongs to those in their early 60s, whose wealth is almost 9x those in their early 30s.
As a result, older generations tend to be more resilient during times of economic uncertainty. For example, less than 20 percent of Silver Generation customers in the US, EU5 and China say they tracked their spending in 2024, compared to more than 30 percent of Gen-Z.
People aged 50 and above represented 38 percent of total global spend in 2024 and will drive 48 percent of global spending growth, 60 percent of growth in China and the US and 79 percent in the EU5 in 2025. Even in emerging markets such as India that have relatively smaller older population shares, those aged over 50 will drive 30 percent of 2025 spending growth.
The Silver Generation represents a greater share of total fashion spend than younger shoppers, with those aged 59 and over representing 37 percent of 2023 retail apparel spend in the US compared to 23 percent for Millennials. Similarly, per capita spend on clothing was 21 percent higher for those aged 59 and over compared to Millennials and Gen-Z in the US in 2023.
This in part reflects the shifting attitudes of this cohort who increasingly defy age-related stereotypes. Half of women in their 50s saying they are now more style-conscious than when they were in their 20s.
Fashion brands need to address the needs of the Silver Generation in order to capture their spend
Experiences matter
Silver Generation customers spend less time shopping for clothes than the average shopper: 17 percentage points less in the US and 36 percentage points less in the EU. Since they are engaged in activities like dining out and travel, brands that create out-of-home experiences are likely to capture their attention.
They are not trend-driven
The Silver Generation cares about individual style but less about trends, 20 percentage points and 16 percentage points less than the average in the US and EU. As a result, they tend to be more brand loyal and shop from a smaller repertoire of brands.
Functionality comes first
They prioritise functionality (23 percentage points and 29 percentage points above the average in the US and EU) and comfort (21 percentage points and 8 percentage points) over style. Brands with timeless designs and identities are therefore more likely to resonate with this cohort.
Value is more important than price
The Silver Generation in the EU prioritises value 25 percentage points above the average. They want versatile products that serve different occasions. Since they are not necessarily driven by trends, they are more likely to buy on discount or via off-price channels.
Knowing where and how the Silver Generation discovers and shops for fashion is crucial
They are slower to embrace omnichannel
The Silver Generation is equally as likely to shop in store as online, but is less likely to embrace omnichannel shopping. Silver Generation shoppers in the US and EU are 15 percentage points and 14 percentage points less likely to check product reviews online before visiting a store, respectively. Brands should use a sufficient breadth of relevant marketing channels to reach them.
Stores are a key destination for discovery
The Silver Generation is 12 percentage points and 25 percentage points more likely to seek inspiration in store in the US and EU, respectively. They are independent shoppers and less likely to engage sales assistants. Brands that optimise retail space are likely to see increased conversion. Meanwhile, in China 47 percent of the cohort uses social media such as WeChat to discover fashion.
Multi-brand retail is preferred
The Silver Generation has a clear preference for multi-brand retailers, 17 percentage points above the average in the EU. Fashion players should review their presence across retailers to expand their reach. Contrary to common perception, the Silver Generation is no more inclined to shop in department stores, except in China.
Resale is low on the agenda
In part driven by their lack of sentiment towards sustainability in fashion, the Silver Generation is 7 to 17 percentage points less likely to engage with non-traditional fashion channels, such as resale. In the US, the cohort is 18 percentage points less likely to buy brands with sustainability credentials than the average shopper. This indicates brands should emphasise quality over other product attributes.
Inter-generational appeal is achievable with branding, marketing and product assortment
Branding: New Balance
New Balance has undergone a multi-year brand transformation, reclaiming its âdad shoeâ as a fashion-forward, inter-generational brand.
By reviving retro styles from the 70s, 80s and 90s, and collaborating with streetwear icons like Aimé Leon Dore, Joe Freshgoods and Salehe Bembury, as well as celebrities such as Jack Harlow, New Balance has successfully reasserted its relevance across generations.
These efforts have successfully attracted both Millennials and Gen-Z while retaining appeal among older generations through a focus on nostalgia. More than 40 percent of consumers across age groups from 18 to 55 and over favour the brand.
Marketing: J.Crew
After filing for bankruptcy in May 2020, J.Crew has turned around its brand by attracting a new generation of customers. As a result, J.Crew is expected to achieve record sales in 2024.
J.Crew aims to offer a timeless, consistent assortment, usually only making small tweaks to core styles to stay relevant and broaden audience appeal. Its marketing highlights the longevity of products whilst showcasing their versatility, such as through âDesign Try-Onâ videos on social media that appeal to a younger audience.
Responding to consumer demand, J.Crew relaunched its iconic physical catalogue in 2024 after seven years out of circulation, evoking nostalgia and showing that print can still work in fashion. In the US, for example, those under the age of 30 are just as likely to source inspiration from magazines as those over the age of 50.
Product assortment: Uniqlo
Uniqloâs LifeWear range is designed to incorporate functional, high-quality everyday pieces and have inter-generational appeal. Uniqlo reported a 17.8 percent revenue increase in May 2024, crediting LifeWear as a key pillar of international growth.
Much of the collection is versatile by design: 90 percent of the current assortment has a simple design or minimal pattern, with âtimelessâ tones. Uniqlo differentiates its timeless classics by using technical features that provide functionality, such as its Heattech, Puffertech and Airism technologies.
Uniqlo has entered long-term partnerships with designers such as JW Anderson and Christophe Lemaire, and recently named Clare Waight Keller creative director, which helps it to gain relevance with a younger, fashion-forward demographic while retaining the same timeless, uncomplicated designs.
How should executives respond to these shifts?
1. Rethink customer segmentation
Move away from age-defined customer segments. Leverage data to identify the values and preferences that unite customers across age groups and use this to inform marketing strategy and communications. Whilst the Silver Generation is broadly channel agnostic about whether they shop in store or online, brands with consistent value-based communications that show up across channels will likely stay front of mind.
2. Diversify the product portfolio
Consider how the assortment appeals across generations. To create products with both younger and older shoppers in mind, brands might introduce more fluid variants of core lines. To attract older customers, they might focus on offering new technical features or innovative materials that cater to their unique preferences, such as comfort and functionality.
3. Define a data-driven channel strategy
Adapt KPIs to ensure the long-term ROI of mature customers is considered when it comes to allocating marketing budgets and channel strategy. Once Silver Generation shoppers have bought from a brand, they tend to be more loyal, so brands might focus on measuring retention metrics for these shoppers rather than new customers acquired. Physical print remains key for marketing to the Silver Generation, as do meaningful in-store experiences, while social media channels such as Facebook and WeChat are more popular among customers aged over 50.
This article first appeared in The State of Fashion 2025, an in-depth report on the global fashion industry, co-published by BoF and McKinsey & Company.
