\n
![](\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2024\/06\/GettyImages-84132291-e1718378548314.jpg?w=2048\")
<\/p>\n [ad_1]
\n<\/p>\n
Each generation cultivates their own emblems of success. In the past that might have looked like owning a car or holidaying abroad. More recently shows of affluence have entailed owning a new-fangled PC or arriving to meetings with a gadget called an \u201ciPhone\u201d in hand. <\/p>\n
But millennials and Gen Z\u2014the latter in particular\u2014are shaking up what status symbols for their age group looks like. Gone are the days of shiny new tech and the latest designer pieces. Instead young consumers are coveting second-hand handbags and expensive food shops as they navigate their way through an inflation-stacked economy, while keeping environmental concerns planted firmly front of mind.<\/p>\n
Consumer experts say that while the exact items Gen Z is lusting after will change over time\u2014as new products launch and economic factors around them shift\u2014their spending priorities are likely to stay the same.<\/p>\n
One of the things that\u2019s sure to make them move on? Adoption of these trends by other generations. As associate professor of marketing Gillian\u00a0Brooks puts it: \u201cPart of how [Gen Z] see themselves is not<\/em> being millennial, is not<\/em> being a Boomer.\u201d<\/p>\n As a result, industries that have relied on the traditional pillars of status\u2014from home ownership through to luxury items\u2014may have to adapt their offerings to a demographic with their own picture of what rich looks like.<\/p>\n Young consumers are really spelling it out when it comes to their status symbols\u2014they want the very cards they use to say something about their standing. Enter Amex.<\/p>\n American Express<\/a> cards have long been associated with wealth courtesy of the annual fees which come with having an account, and the travel perks which are irrelevant to lower-income consumers. The company has made no effort to hide the fact they\u2019re going after younger customers who want to flash a \u2018lifestyle\u2019 card at the checkout, and Gen Z and millennials are firmly on board.<\/p>\n Howard Grosfield, president of U.S. consumer services at American Express, told\u00a0Fortune<\/em> earlier this month Gen Z and millennials accounted for 75% of new consumer platinum and consumer gold accounts in 2023. But status symbols aren\u2019t defined just by how people spend their money, but what they spend it on as well.<\/p>\n Look no further than a note released by Bank of America<\/a> last week, which found that every year since 2021 Gen Z has spent more at \u2018premium\u2019 grocery stores than they have at value chains. Conversely, despite standard-tier shopping still being the most popular across every generation, for Gen Z consumers the share of card spending in this category dropped approximately 4% between April 2019 and April 2024.<\/p>\n If you\u2019re looking for evidence of the phenomenon in action look no further than the Erewhon craze sweeping TikTok. The L.A.-based luxury food market has more than 26,000 videos beneath its hashtag, many of which are taste testing the brand\u2019s viral smoothies which retail for up to $23 each.<\/p>\n Meanwhile, millennials are fairly consistent in their shopping habits (preferring standard-tier, then value, closely followed by luxury grocery stores) though this flies in the face of how older generations shop. BofA data found Gen X and baby boomers are increasingly choosing value stores over their highest-end counterparts, adding: \u201cThese customers are even further along in their life stage and already paying for more necessities than their younger counterparts.\u201d<\/p>\n The difference when it comes to Gen Z\u2014whether it\u2019s in their personal lives or at work\u2014is that the majority have grown up with a smartphone within reaching distance and a social media presence since almost the day they were born.<\/p>\n As a result, King\u2019s College London\u2019s Brooks told Fortune<\/em>, status symbols don\u2019t hold any value to Gen Z in the real world\u2014they only matter if they\u2019re posted online. The \u201ctrue status\u201d the younger generation is hunting for is attention.<\/p>\n \u201cWhether it\u2019s by showing they\u2019re not consuming and they\u2019re buying secondhand, or they\u2019re doing attention capital by saying \u2018Look how much I can spend on a smoothie and I\u2019m buying all these things to increase my wellbeing at a price\u2019, the status is attention,\u201d she explained. <\/p>\n In her lecture halls, she added, two students flashing a trendy product will sit beside each other but never address the purchase: \u201cIt\u2019s entirely online. They might have come in with their Stanley water bottle or a few years ago the Balenciaga trainers. They come in, it\u2019s unspoken\u2014that\u2019s part of the cache. There\u2019s a look but there\u2019s never an acknowledgement.\u201d<\/p>\n The power of status symbols is also only increasing because of social media, Brooks added. \u201cStatus symbols are becoming so much more important because they carry so much weight,\u201d she explained. \u201cIt\u2019s not just the brand, it\u2019s: \u2018What does the brand stand for? Does the brand align with my ethos, and what does that say about me as a consumer and my personal brand when I purchase which I will inevitably do, because that\u2019s what my generation does?’\u201d<\/p>\n Gen Z and millennials are also toting their status symbols around on their shoulders\u2014though older consumers might get deja vu. That\u2019s because shoppers on the younger end of the spectrum thrift vast swathes of their wardrobe, not only because they like how it looks but because it symbolizes their priorities in life.<\/p>\n According to research released this year by Capital One<\/a>, 83% of Gen Z has shopped secondhand, with 34% saying they only buy from thrift shops. Their motivation is clear, Capital One found: 85% of secondhand shoppers said they wanted to save money. But on top of that 42% said they shopped secondhand because it was more sustainable, and 17% wanted to give back to communities.<\/p>\n Feedback also suggested that there is a status element to thrifting: 47% of those surveyed said secondhand shopping is \u2018cool\u2019 or \u2018trendy\u2019.<\/p>\n Meanwhile research from authenticated, luxury good reselling platform<\/a> The RealReal found shoppers were \u201ctrading down\u201d from ultra-luxe brands, instead looking for more accessible options in \u201cfair condition\u201d (so show signs of some wear). Shoppers also have a specific style in mind: Y2K (2000s) and vintage pieces. Y2K \u201cdominated\u201d in 2022 and 2023, the report found, but that \u201chunger for authentic Y2K pieces may have kicked off a widespread interest in vintage.\u201d<\/p>\n This demand for sustainability is going nowhere, added Dr Brooks. She explained: \u201cPeople have always consumed conspicuously, they consume to show themselves in a specific light. Gen Z want to see information about climate change, about mental health\u2014they want to see that the company is considering that \u2026 they want to show investment in brands in a company that stands for something they stand for.\u201d<\/p>\n While Gen Z may be eating out less because of prices and reported \u201cmenu anxiety,\u201d<\/a> their preferences are likely to shift as the economy around them changes and their spending power increases. <\/p>\n Returning to the BofA note, economist Joe Watford added that signs of Gen Z trading down are beginning, as they \u201cage into\u201d the wider economy with the likes of housing, auto and insurance costs to pay for. He explained: \u201cUntil recently, higher wage growth relative to other generations might have allowed [Gen Z] to shop at premium-tier stores for longer. But we think it is possible that the Gen Z cohort recently traded down to value-tier grocery stores to alleviate some of the pressures from taking on more necessity spending as they grow older.\u201d<\/p>\n Likewise, Brooks adds that while expensive groceries may be en vogue now in six to eight weeks a new product or trend will take over. The real killer of a Gen Z status symbol is also interest from other generations, she said: \u201cA smoothie might be gone in an hour, but you\u2019re still showing that you\u2019ve bought that smoothie\u2014and that you have the social and cultural capital to know it\u2019s something of value. It\u2019s signaling that you know the rules of the game to show your status.<\/p>\n \u201cSo if someone in a different generation adopts one of their symbols you\u2019re out of place, you\u2019ve overstepped. It looks like you\u2019re trying too hard\u2014part of how [Gen Z] see themselves is not<\/em> being millennial, is not<\/em> being a Boomer.\u201d<\/p>\n A grocery-handbag-credit card combination might not exhibit the traditional consumer values many brands have become accustomed to. As Sophie Maxwell, partner, futures and insight at\u00a0Pearlfisher<\/a>, wrote for Fortune<\/em><\/a> last year: \u201cTo attract and keep [Gen Z] engaged, luxury brands are rapidly having to move beyond the traditional notions of luxury\u2013such as status, legacy, prestige, and heritage\u2013towards a new set of values: inclusivity, sustainability, transparency, technology, and circular innovation.\u201d<\/p>\n Not everyone in the C-suite is convinced by this argument, however. Earlier this year, Pandora CEO Alexander Lacik dismissed the idea that Gen Z and millennials are buying lab-grown diamonds because they\u2019re sustainable, telling Fortune<\/em><\/a> they just want something more affordable with a nice design.<\/p>\n Lacik added: \u201cI\u2019ll be dead before somebody comes into my shops and says, \u2018Can you show me your sustainable products?\u2019 It\u2019s just not in people\u2019s minds when they\u2019re shopping this category.\u201d<\/p>\n For the businesses which feel it is important to cater to customers\u2019 eco and ethical concerns, consulting giant warns KPMG<\/a> in-depth understanding is paramount. Julio Hernandez, head of global customer centre of excellence, told Fortune<\/em> that companies need to firstly ensure their commitments are both authentic and align with the values of customers. <\/p>\n He added: \u201cAs companies seek to influence their customers\u2019 behavior towards greater sustainability it is necessary to understand customer values, attitudes and the motivation for positive behaviors.\u00a0While the value-action gap is closing, overall firms need to understand the significant differences in attitudes and intent across different groupings in their customer base.<\/p>\n \u201cThis should open opportunities for innovation with new products and services. It will also enable companies to engage with their customers in a more meaningful way.\u201d<\/p>\n<\/div>\nLifestyle spending<\/h2>\n
If it\u2019s not on TikTok it didn\u2019t happen<\/h2>\n
Get the bag<\/h2>\n
Groceries are forever?<\/h2>\n
Redefining luxury<\/h2>\n