A new report by Boston Consulting Group (BCG) and Women’s Wear Daily (WWD) has found that Gen Z and Gen Alpha are on track to drive 40% of total fashion spending by 2035, reshaping the global apparel market through new values, digital habits, and brand expectations.
According to the study, titled How Gen Z and Gen Alpha Are Rewiring the Fashion Industry, the two younger generations spend 7% more of their disposable income on clothing and footwear than older age groups. The findings are based on a survey of more than 9,000 US consumers and an analysis of 50,000 social media posts, presented during the WWD Apparel & Retail CEO Summit, held alongside WWD’s 115th anniversary.
The report also highlights that fashion serves as an entry point to artificial intelligence (AI) for younger consumers. 41% of Gen Z and Gen Alpha report using AI tools weekly to shop for fashion products, compared with 34% of older generations.
“Younger consumers represent one of the most powerful spending forces in fashion, yet they are also the hardest to win and keep,” said Mrin Nayak, Managing Director and Partner at BCG, and co-author of the report. “Their shopping patterns are fluid and unpredictable, driven by a search for brands that reflect their values and identities while maintaining cultural relevance. Winning them over represents a defining opportunity for brands to build long-term loyalty.”
“This is a defining moment of opportunity for brands to engage a new generation of consumers in more meaningful ways,” says Amanda Smith, CEO of Fairchild Media Group (which includes WWD, Beauty Inc, Footwear News, and Sourcing Journal). “Gen Z and Gen Alpha are reshaping the fashion landscape through new expectations around authenticity, personalization, and digital innovation. WWD is proud to partner with BCG on this report to help the industry understand these shifts and translate insight into action and growth.”
The research shows that young consumers are 1.5 times more likely than older shoppers to discover new brands through social media. They view digital creators and influencers as holding the same level of influence as traditional celebrities. Interestingly, micro-influencers with under 100,000 followers are almost as impactful as high-profile figures with over 1 million followers, 22% of young consumers use micro-influencers for brand discovery, compared with 27% for celebrity influencers.
Gen Z and Gen Alpha are also 1.3 times more likely to associate a brand’s prestige with its social media engagement and twice as likely (2.0x) to make purchases based on influencer content.
While millennials and older generations are slightly ahead in overall AI use (58% vs. 51%), Gen Z and Gen Alpha are more inclined to use AI specifically for fashion shopping. The report shows 41% of younger consumers rely on AI tools to explore new styles, seek fashion advice, visualize outfits, or compare prices, compared with 34% of older consumers.
High-spending Gen Z and Alpha consumers are also twice as likely to use AI regularly. As e-commerce platforms introduce AI-powered chat agents and in-chat shopping features, the technology is becoming a trusted co-shopper for younger audiences.
Unlike previous generations, Gen Z and Gen Alpha are product-loyal rather than brand-loyal, the report found. They are 20 percentage points less likely to repeatedly buy from the same brand, instead seeking out items that are unique and emotionally resonant. Nearly half of young consumers (around 50%) expect personalized shopping experiences and recommendations tailored to their preferences.
The report concludes that as Gen Z and Gen Alpha gain spending power, fashion brands must adapt to a landscape shaped by digital engagement, personalization, and social influence, or risk losing relevance in one of the world’s most rapidly evolving markets.
