Rcih Hollander - Gen Z lux brands

LUXURY BRANDS SAG AS GEN Z’S ‘NO-BUY 2025’ TREND SPREADS

Consumers have kept the economy humming, but inflation fatigue has taken a toll. The new big idea is austerity, and it’s hitting luxury retail hardest.  A sea change in the spending habits of the world’s consumer-driven economies appears to be gathering momentum, presenting an ominous challenge for the retail industry, most recently in the luxury space. The Gen Z “underconsumption” trend we discussed here last summer has expanded into this year’s broader social media meme—“No Buy 2025.”  Younger consumers, especially in the U.S., have been embracing this burgeoning movement which encourages people to buy as little new merchandise as possible. Just the essentials.  What this will mean for the overall retail industry in the long haul is uncertain. For now, it is the marquee high-end brands that are feeling the pinch, with some analysts warning of an extended downturn or, more dramatically, a basic change in consumer culture.

One of America's foremost retail experts. He is a former VP at Radio Shack, President at Cash America, President at Rent-a-tire, VP at Mastercard, and is currently a Managing Partner at Axcelor, a consulting firm with a network of more than 40 retail executives RICH HOLLANDER