Luxury Brands Face Major Challenge: Understanding Gen Z
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 19 2025
0mins
Source: Reuters
Gen Z's Influence on Luxury Spending: Gen Z, projected to account for 25% of global luxury spending by 2030, is challenging traditional luxury brands with their preference for originality and sustainability, often mixing established brands with trendier labels.
Shifts in Brand Strategies: Brands like Coach and Ralph Lauren are successfully attracting Gen Z by leveraging influencers and focusing on personalization and sustainability, while luxury giants like Gucci are struggling, facing significant sales declines and losing relevance among younger consumers.
Emergence of New Players: Smaller and newer brands, such as Collina Strada and Miu Miu, are gaining traction with Gen Z by offering affordable luxury items that resonate with their values, including sustainability and community engagement.
Market Dynamics and Future Trends: The luxury market is witnessing a divide between successful brands that adapt to Gen Z's preferences and those that fail to innovate, with potential new leaders emerging from the Chinese market due to their digital fluency and cultural relevance.
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Analyst Views on TPR
Wall Street analysts forecast TPR stock price to fall
15 Analyst Rating
13 Buy
2 Hold
0 Sell
Strong Buy
Current: 144.350
Low
120.00
Averages
136.57
High
155.00
Current: 144.350
Low
120.00
Averages
136.57
High
155.00
About TPR
Tapestry, Inc. is a house of accessories and lifestyle brands. The Company's global house of brands include Coach and kate spade new york. Coach brand is a global fashion house of accessories and lifestyle collections. Kate Spade New York is a global lifestyle brand that designs things for the everyday, delivering seasonal collections of handbags, ready-to-wear, jewelry, footwear, gifts, home decor and more. Its products include women's handbags, women's accessories, men's and other products. Women's accessories include small leather goods which include mini and micro handbags, money pieces, wristlets, pouches and cosmetic cases. Men's includes bag collections, small leather goods, footwear, watches, sunglasses, and ready-to-wear items. Its products are sold to customers through its direct-to-consumer (DTC), wholesale and licensing businesses. Its DTC business includes retail and outlet stores, branded e-commerce sites as well as concession shop-in-shops.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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