Increasing costs, high levels of inflation and economic uncertainty are impacting the retail and fashion sector worldwide.
And while McKinsey reports a cyclical slowdown, their 2025 ‘State of Fashion report’ also highlights an increase in ethical purchasing habits, more consumer awareness and a change in company’s sustainability efforts.
Julie Holt, Global Business and Exhibitions Director for the International Expo Group and organiser of the Global Sourcing Expo highlights the research, adding that shifts in retail buying behaviour and preferences can be seen across prominent purchasing regions.
“While marginal year-on-year growth has been observed in major markets such as the US and Europe – in both the luxury and non-luxury categories – the slowdown from a peak in 2021 is blatantly evident. China, on the other hand, is seeing marginal growth in the non-luxury category and negative growth in the luxury sector.”
Attributed to slowing economic confidence and overseas purchases, Bain & Company reports that China’s luxury fashion sector plummeted by 18-20% in 2024.
To appeal to consumers in a challenging environment, Holt says that it’s important for retailers, buyers and marketing teams to understand what each generation wants and how best to appeal to them.
What the Generations Want
The Silver Generation/ Baby Boomers (aged 52-plus): The silver generation currently spends more on fashion than their younger counterparts. These financially stable, affluent buyers are loyal shoppers, still prefer in-person experiences and are willing to pay for quality.
Reports in 2023 also showed that over-65s were spending more on airline tickets, holiday accommodation and cruises as interest rates boosted their incomes. Holt goes on to note that there is a shift towards digital technologies, which if applied correctly can appeal to this audience. “User-friendly platforms must be prioritised.”
Generation X (aged 45 to 60): Often dubbed ‘hybrid shoppers’, Gen X is driven by convenience and value for money (including loyalty programs). There is also clear research showing that they enjoy both online and in-person shopping and will purchase sustainably produced items (if the price is right).
Millennials (aged 28 to 43): “This tech-driven generation prefers experiences over possessions. In this case, setting up exclusive shopping centres in iconic locations would be a good option.”
Research shows that millennials are often influenced by reviews, peer opinions and influencer recommendations. They also enjoy making use of subscription services such as meal kits, fashion rental, streaming services etc.
Generation Z (aged 13 to 28): This social media-driven generation tends to engage and be influenced by platforms like TikTok, Instagram and Snapchat. They opt for convenience services such as express shipping and free returns, and tend to do most of their shopping from their mobile phones.
“Research shows that this generation is not particularly brand loyal, and that price, service and quality will drive their decision making process.”
Another interesting fact is that Gen Z enjoys thrifting. “The idea of preserving the environment – at an affordable price – really appeals to them. They also enjoy clothing items that are unique and will last for a really long time.”
Looking ahead, Holt believes that increased industry collaboration will help address gaps and bolster the industry’s performance. “Events like the Global Sourcing Expo exist to connect the industry. It’s the ideal platform to share information and knowledge, and lived experience which may positively affect your peers. We are excited for another year of collaboration, problem solving and developing deeper industry connections.”
