Why Gen Z’s indulgence attitudes won’t stay the same

Download the full What The Future: Indulgence issue

Older Americans may hold more spending power than younger ones — but in an age of Gen Z HENRYs (“High Earners, Not Rich Yet”) and DINKs (“Dual Income, No Kids”), age and tax bracket exert a strong influence on the ways people shop.

Gen Z’s growing economic influence has clear implications for brands. Those seeking broad appeal should keep tabs on the luxuries that all ages care about: small indulgences. Those catering to Gen Zers, on the other hand, should note that the youngest shoppers, at least for the time being, put a premium on experiential luxury and brands that reflect their values.

These profiles are likely to change. The cohort’s values may persist, while attitudes based on life stage might recede as Gen Zers age into their careers and families. To tease out those shifts, brand leaders and marketers must avoid “vibes-based” narratives and seek out rigorous data that accounts for the social and economic complexity of generational values and behaviors.

For further reading

• Affluent Americans more likely to have increased their net worth this year
• Loving or loathing: Understanding affluents’ relationship with luxury
• What the Future: Shopping