A new joint report from Boston Consulting Group (BCG) and Women’s Wear Daily (WWD) reveals that Gen Z and Gen Alpha will account for 40 percent of total fashion spending by 2035. These younger generations already dedicate about 7 percent more of their disposable income to clothing and footwear than older consumers, signaling a major cultural and economic shift in how fashion is consumed.
Fashion as a Gateway to Artificial Intelligence
Fashion has become one of the first industries where younger consumers are deeply integrating artificial intelligence into their shopping experience. According to the study, 41 percent of Gen Z and Gen Alpha use AI tools weekly when shopping, compared with 34 percent of older generations. Virtual try-ons, personalized recommendations, and AI-powered styling apps are becoming standard for these digital natives, who expect convenience and creativity at every stage.
Insights from the Report
The report, titled How Gen Z and Gen Alpha Are Rewiring the Fashion Industry, is based on a survey of more than 9,000 U.S. consumers and an analysis of 50,000 social-media posts. The findings were presented at the WWD Apparel & Retail CEO Summit, which also marked the 115th anniversary of WWD.
What Industry Leaders Say
Mrin Nayak, Managing Director and Partner at BCG and co-author of the report, noted that younger consumers are among the most powerful yet unpredictable audiences in fashion. Their shopping behavior is driven by identity, personal values, and cultural connection rather than traditional brand loyalty.
Amanda Smith, CEO of Fairchild Media Group, added that Gen Z and Gen Alpha are redefining expectations around authenticity, personalization, and digital innovation—creating both new challenges and unique opportunities for brands worldwide.
The Power of Social Influence
The study found that young consumers are 1.5 times more likely than older shoppers to discover brands through social media. Influencers and digital creators now hold the same level of trust and authority as celebrities, and collaborations with them often drive stronger engagement than traditional ads. In this new landscape, visual storytelling, peer validation, and authenticity have become the currencies of influence.
Redefining Loyalty and Brand Connection
For Gen Z and Gen Alpha, loyalty is fluid and values-based. They choose brands that align with their principles—sustainability, inclusivity, and transparency—but are quick to move on if relevance fades. Successful fashion companies will be those that continuously adapt, stay culturally aware, and maintain emotional connection through authentic communication.
The Future of Fashion Spending
By 2035, Gen Z and Gen Alpha together will shape nearly half of global fashion revenue. Their digital fluency, ethical expectations, and hunger for innovation will define the next decade of fashion. Brands that combine creativity, technology, and responsibility will be best positioned to thrive in this evolving marketplace.
