For legacy luxury brands to survive in India, they certainly need to evolve to meet Gen Z’s new definition and ideas of luxury. The question is: Will they be able to match up?
When Rory’s boyfriend Logan gifted her a pink bag in Gilmore Girls, my 13-year-old self couldn't exactly fathom why everyone was making a big fuss about it.
It took me all of the next decade to realise that it wasn’t just any pink bag — it was, in fact, a Hermés Birkin, exquisitely handcrafted, notoriously expensive and exclusive! Even the act of buying it sounded like a competition, requiring long waitlists and an invitation from the brand itself for one to be able to purchase it.
From The Devil Wears Prada to Meghan Trainor singing about “Gucci” and “Louis Vuitton,” references to luxury brands are ubiquitous in pop culture, turning a life of luxury into social currency.
Still, for Gen X (people born between the years of 1965 and 1980) and millennials (people born between the years of 1981 and 1996), who lived out a chunk of their lives in a pre-liberalized India, the understanding of luxury brands wasn’t immediately juxtaposed in their DNA.
Their fashion influences were likely derived from Bollywood blockbusters and fashion and lifestyle magazines, explaining the popularity of brands such as GAP. Since global styles weren't right at their fingertips growing up, it held a mysterious and exclusive allure for them, more of a seasonal indulgence than an all-year-round lifestyle.
But unlike millennials, the vocabulary of Birkin Bags and Air Force 1 Jordans has had a stronghold over the collective consciousness of Gen Z — the group of Indians born between 1997 and 2012 — since the moment they were born in a post-liberalized country.
For them, it’s both social currency and a status symbol, a marker of identity as well as individuality. In fact, a Bain & Co report finds that Gen Z is prone to buying luxury items around three to five years earlier than the preceding generations, possibly owing to early media exposure.
When I was introduced to the world of luxury bags years ago, the idea of luxury revolved around exclusivity, something that was aspirational because it was out of my reach and available to only a select group of financially mobile people.
But a pandemic later, the definition of luxury seems to have undergone a makeover.
“Luxury products must be accessible yet special while retaining their desirability”
– David Abraham of the design house Abraham & Thakore says in an interview to Vogue.
So really, has the idea of luxury evolved for the silver spoon-wielding Gen Z in a way that could threaten its very purpose?
Take 18-year-old Ken for instance, who wanted to buy a premium pair of sneakers because he had heard that people at his new college are known to wear good ones.
For the Kochi resident, Nike’s Air Force 1s were among the first choices to pop into his mind. This was Ken’s first luxury purchase, and by his own admission, the decision had everything to do with the cultural memory of iconic brands.
For him, sneakers were synonymous with Nike — nothing else came close.
“I just wanted a quality product that would last me a long time,”
– Ken says, admitting that he doesn’t think twice before buying premium products for a higher price when it guarantees a higher quality.
Even 20-year-old Ishika, a Mumbai resident, echoes this sentiment, underscoring that when she buys luxury bags, the priority is always to find something that she “can seamlessly incorporate” into her wardrobe.
The brand often doesn’t matter, effectively proving that although legacy brands reign supreme in Gen Z’s minds; they aren’t always as loyal to brands as previous generations who I suspect, were more prone to putting luxury brands on the pedestal.
Today, Gen Z is quick to point out the flaws even with the most elusive brands. Ishika tells me about stumbling upon YouTube videos that took a swing at Chanel’s product quality issues, which then deterred her from considering any future Chanel purchase.
Ken, too, admits that quality takes precedence before brand reputation for him. That is to say, Gen Z is arguably more intentional with their luxury purchases, demanding accountability from brands instead of being swayed by their branding.
Much of their unique perspective on luxury certainly stems from their increased proximity to the world of luxury coupled with a rise in their spending power.
It’s a known fact that Gen Z will generate disposable income at an earlier age than millennials, given their disinterest in spending on weddings, houses, or even children.
What that effectively means is that this is a section of population that will actually have the time and power to reimagine the very definition of luxury.
It’s perhaps for this reason that Gen Z has started finding overt dislays of luxury pretentious, opting to adopt a lifestyle choice popularly known as “quiet luxury.”
The idea of quiet luxury is about elusiveness rather than exclusivity, where the brand is unrecognisable to the general public but distinguishable only in the eyes of the generationally affluent.
As it entered pop-culture through movies, shows, celebrities, and fashion influencers, quiet luxury has become more about premium products that are minimal and well-made, eschewing flashy brand logos and identifiers. Think of it as living a life of luxury without explicitly announcing about it from the rooftops!
Given that quality matters more to Gen Z than the prestige of owning a luxury item, it’s not surprising that they love dupes, cheaper products that echo the aesthetics of luxury goods.
For them then, luxury brands aren’t only in competition with other luxury brands but are, in fact, compared to any and every brand that can promise the same kind of quality and design at an accessible price and venue.
That in itself is a worrying trend for legacy luxury brands, especially considering Gen-Z leads largely online lives and rely on the digital presence of brands for purchasing and cultivating brand familiarity.
Most legacy luxury brands, on the other hand, centre themselves around being an in-store luxury experience, which will certainly alienate a large demographic of younger consumers who have the spending power but just aren’t interested in shopping that way anymore.
To be able to counter the overnight virality of dupes, legacy luxury brands need to talk to Gen Z in their own language, that is, through an omnichannel presence that prioritises seamless brand communication and customer service across online and offline platforms.
Looking back, although Ken admits that buying that pair of sneakers — priced at ₹10,000 — was an impulsive decision, he still believes it as an accessible entry point into luxury for him.
That might be a clue for luxury brands looking to cater to younger consumers: instead of waiting for Gen Z to reach an age of financial security or depend on them to utilise parental wealth, they could perhaps, focus on creating inclusive price points that give their younger clientele enough of a reason to be loyal to them.
A prime example is the popularity of Indian streetwear among Gen Z, known for their affinity towards oversized and baggy clothing.
Gen Z has greater awareness of premium Indian streetwear brands like Jaywalking, Bluorng, and Almost Gods, primarily because it is the perfect amalgamation of aesthetics and economics. The design is sleek and the price of these brands, aspirational but not inaccessible.
In fact, this subculture of Indian streetwear was born and raised on Instagram, the dream haven for thrift stores and small businesses. And it is the spending habits of Gen Z that have single handedly turned Indian streetwear into a fashion statement.
That’s worth noting for brands looking to gain a foothold in the Indian luxury boom — the fact that Gen Z is not just an up-and-coming consumer base, but one that has already arrived all while imagining a new world order.
And unless luxury brands come up with an inclusive approach, they might just take their business elsewhere. It might not look so at first glance, but the Hermés Birkin bags need Gen Z more than they need it.
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