In Depth: Gen Z projected to spend £1.2 billion on fashion in the next six months

Gen Z’s UK fashion spend is projected to total £1.2 billion over the next six months, with 99% set to spend an average of £150 on clothing, footwear and accessories.

That’s according to the latest ‘Fashion Report’ from UNiDAYS, the Student Affinity Network that enables students and graduates to discover savings, in conjunction with QuMind, which surveyed 1,600 UK students on their buying habits.

The report says that Gen Z "will buy more fashion items than any other generation", with two-thirds set to spend between £76 and £500 each.

Reinforcing previous findings, the latest report highlights Gen Z’s preference for a varied wardrobe "that fits their range of specific motivators and key moments in the student calendar" as driving purchasing behaviours.

Topping the list of the most popular reasons for Gen Z to buy new items are working out, spring holidays, "staying on trend", interviews or jobs, and festivals.

Unlike older demographics, according to the findings, students show a unique preference for in-store shopping, with the majority indicating they would rather browse physical stores than online sites across the majority of fashion categories.

Driving that preference is a desire to ‘try-before-you-buy’ (73%), avoid delivery wait times (61%), and the convenience of having multiple shops in one location (54%).

Other key insights are:

• 66% of Gen Z discover new trends and products while browsing in-store, more than both millennials (56%) and Gen X (62%).
• 38% say physical ads are a top source of discovery, meaning there’s a massive opportunity for brands to advertise in public spaces with high student footfall, like bus stops, along commuter routes, and on campus.
• Gen Z are digital natives, so uncover new trends, products, and brands via social media sites like Instagram, TikTok, and YouTube, primarily through peer and influencer content, including reviews and paid collaborations.
• Professional ads still influence 47% of Gen Z when searching online, more than any other factor or generation, "underscoring the continued relevance of professional advertising in reaching and engaging young consumers".

Key factors impacting purchasing decisions and loyalty include price, as well as online and in-store student discounts.

Brand choice is "notably fluid" in the younger demographic, with only 3% expressing strong brand loyalty that prevents them from buying elsewhere. UNiDAYS says that openness to trying new labels "presents a significant market opportunity for brands to lock in a lifetime of loyalty now".

UNiDAYS Category Lead Fashion, Gonzaga Alonso, said: "Fashion is a massive contributor to individualism, which is a huge part of Gen Z identities. It’s one of the ways young people can stand out from the crowd and show they’re following their own path, so it’s no wonder we see more brand fluidity and openness to try new labels.

"What is more striking is students’ willingness to forego the convenience of online shopping for the instant gratification of buying in-store. All this means brands need to step up a gear when it comes to seamless and consistent experiences and start prioritising youth demands, meeting them where they’re at during key moments on the student calendar."

Footwear is the category Gen Z will spend the most on over the next six months, with a total projected spend to hit £579 million. Despite a lower disposable income and millennials' penchant for more exclusive footwear, students are willing to spend on average £71.60 per pair, almost the same as millennials (£72.88) and 37% more than the mean spend of £49.41 by older shoppers.

Casual trainers are very much "part of Gen Z’s culture" and are the preferred footwear for nine in 10 compared with millennials (64%), Gen X (74%), and baby boomers (68%), explaining why 85% indicate they’ll buy at least one pair in the coming months.

The young demographic "takes trainers seriously as both a hobby and lifestyle choice", with a quarter indicating they are an important part of popular culture, hence their willingness to pay accordingly.

When it comes to trainers, brand loyalty is also high compared to other fashion items. The top three brands students are planning to buy from are Nike (65%), Adidas (51%), and New Balance (41%). Those brands are "all meeting the youth demand for affordable and functional footwear that can take them from study halls to nights out and weekend fun", with popular silhouettes including Adidas Samba, New Balance 530, and Nike Cortez.

With a projected total spend of £509 million, and an average individual spend of £62.94, jewellery is the next category Gen Z will spend the most on over the next six months.

However, unlike older generations who prefer more dainty pieces, young consumers will buy bold, contemporary looks "from more ethical brands that responsibly source gems, give back to communities, and operate sustainably".

In accessories, bags are a major focus and will reportedly see an average spend of £51.39 per student – totalling a potential £416 million.

Gen Z will also have an average spend of £37.98 on jeans, totalling £307 million. Six in 10 students buy their jeans in-store directly from their brand of choice compared to a third of millennials.

Additionally, the total potential spend by students on gym wear in the coming months is expected to reach £236 million, with an average individual spend of £29.21. Among Gen Z, that is the only category where purchasing digitally is marginally more popular than in-store.

Where older generations prefer to buy underwear and lingerie at department stores, two-thirds of Gen Z shoppers buy in-store directly from their favourite brands. Over the coming months, the total potential spend of students is projected to hit £188 million in that category - an average individual spend of £23.33.

The UNiDAYS report is in stark contrast to another Gen Z buying habits report published yesterday by Pion, described as a "leading authority" in the consumer habits of Gen Z, which surveyed 4,000 people for its Youth Trends Report 2024.

It said that the ‘under consumption’ trend, as well as more awareness around the environmental impact of overproduction and waste, combined with the need to reduce carbon footprints, means that 66% of Gen Z shoppers are prioritising second-hand shopping. Pion also found that 83% of Gen Z have actually cut down on non-essential spending this year.