Latest news with #GenerationZ
India Today
2 hours ago
- Business
- India Today
62% of Gen Z workers skeptical about AI's promise: Report
As AI tools become more common in classrooms and offices, a surprising trend has emerged: Generation Z is questioning their value. According to GoTo's Pulse of Work 2025 report, 62% of Gen Z workers believe AI is overhyped. That's not just a passing complaint -- it's a cultural shift from enthusiasm to healthy SAVVY, NOT GULLIBLEDespite growing up online, Gen Z isn't against technology -- they're wary of overpromises. Having seen the crypto crash and the metaverse fizzle, they aren't easily convinced by when it comes to AI, they aren't impressed by flashy claims. They ask serious questions: Is it reliable? Does it understand real-world context? Can it truly replace human judgment? Often, the answer is no. As a result, they're cautious, cross-checking AI outputs rather than accepting them at face TOOLS, UNMET POTENTIAL Despite high interest, AI tools aren't being fully utilised. Across all age groups, 86% admit they're not using AI to its full potential -- Gen Z is only at 78%.Many young professionals can use ChatGPT or Zapier for basic tasks like editing and email drafting, but struggle to apply AI to strategic or analytical put, they have the tools, but not yet the use-cases or training to make them work HIDDEN COST OF LOW ADOPTIONadvertisementThe report highlights a staggering opportunity cost: workers spend about 2.6 hours per day -- 13 hours a week-- on tasks AI could handle, translating to $2.9 trillion in annual gains in the US Gen Z remains cautious. They're not afraid of AI, they're demanding it earn its place by solving real problems, not just boosting TRAINING AND TARGETED USEso reserved? For one, training is lacking. Nearly 82% of workers don't feel confident applying AI in everyday work, and 87% say they haven't received proper in worries over accuracy, 86% of employees doubt AI's outputs, and the result is a trust most current AI applications target repetitive tasks, while Gen Z is often asking for help with more complex challenges like decision-making and conflict DOUBT INTO DIRECTIONThe Gen Z response isn't rejection, t's a call to action. They want companies to match AI tools with real roles, not want clear policies, proper training, and access to advanced AI. And they're ready to choose tech tools over perks: 61% say they'd prefer access to AI tools over traditional workplace benefits.A SMARTER TECH FUTUREGen Z's stance on AI isn't anti-tech, it's pro-transparency. Their standard isn't blind adoption, it's than stopping AI's momentum, they're steering it toward practical, human-centered outcomes. In their hands, the future of AI may be less about hype and more about real benefit, and that's exactly what smart companies should aim for.
Fashion Value Chain
2 hours ago
- Business
- Fashion Value Chain
Strategic Location Analysis and Marketing Approaches for New Retail Standalone
Nagarbhavi EasyBuy Store Srinidhi Rajadurai PG Scholar, Master of Fashion Management, NIFT Daman Dr Rahul Kushwaha, Assistant Professor – FMS, National Institute of Fashion Technology, Daman Introduction The retail landscape is continuously evolving, prompting businesses to seek strategic locations that maximise customer reach and enhance brand visibility. This research focuses on the strategic location analysis and marketing approaches for the proposed Nargarbhavi EasyBuy Store, aiming to provide insights into the viability of establishing a new standalone store in Nagarbhavi. Nagarbhavi, a densely populated suburb in Bangalore, presents a great opportunity for retail expansion due to its growing middle-class population and increasing consumer spending power. Marketing strategies are essential for any brand as they encompass the plans and tactics employed to promote products or services to target audiences. These strategies not only help in attracting new customers but also play a crucial role in retaining existing ones by fostering brand loyalty and awareness. For EasyBuy, a brand known for its commitment to providing quality products at competitive prices, effective marketing strategies are vital. They ensure that the brand not only stands out in a crowded marketplace but also resonates with the local community, thereby driving foot traffic to the new store. Through this research, the aim is to provide valuable insights into the strategic planning of retail operations, ultimately enhancing the competitive edge of the EasyBuy Store in Nagarbhavi within a rapidly changing retail environment. Objectives To assess the demographic profile and purchasing behaviour of residents in Nagarbhavi. To conduct a competitive analysis and identify EasyBuy's market positioning potential. To recommend localised marketing strategies to maximise store visibility, footfall, and conversion. Literature Review The research paper on a case study on Zudio by B Govil examines brand awareness, focusing on Zudio, a retail clothing brand. Which aimed to investigate Zudio's strategies to create and maintain brand awareness, along with their effectiveness. Respondents view Zudio products positively, linking their quality to marketing promises, with advertisements and social media playing a significant role in shaping consumer preferences and choices. Zudio's marketing and celebrity endorsements are influential, and its loyalty programs encourage repeat purchases. The study offers valuable insights for marketing professionals and helps understand brand awareness dynamics in the fast-fashion industry, guiding future strategies for Zudio and similar businesses. Karta N & Dhita P describe how the digital world has made it complex to drive marketing strategies for a brand due to the impact of Generation Z, a significant consumer group born between the mid-1990s and the early 2010s. This research paper aims to analyse Generation Z's consumer preferences and effective marketing strategies for building sustainable relationships with them. It uncovers recurring patterns, emerging trends, and socio-cultural influences shaping Generation Z's consumer behaviour, as well as their shift towards experiences over physical products, and their preference for brands prioritising social values, environmental concerns, and sustainability. The insights from this research are expected to provide valuable guidance for companies looking to engage and resonate with Generation Z and remain competitive in the consumer market. Research Methodology The study combined both descriptive and exploratory methodologies. The descriptive aspect focused on evaluating the potential of the Nagarbhavi location through the analysis of customer accessibility, demographic profiles, and market demand, while the exploratory aspect sought to gain insights into local market trends, customer preferences, and the competitive landscape. Primary data was collected from residents of Nagarbhavi, including students and staff from nearby colleges and schools. A total of 180 people were approached, with 100 responses collected, and after filtering for accuracy and completeness, 87 valid responses were used in the analysis. Convenience sampling was utilised for participant selection. Additionally, interviews were conducted with the Business Development team to understand the site selection criteria and strategic planning for new stores. Secondary data was gathered through an on-ground catchment and competition study in Nagarbhavi, analysing key competitors such as Zudio, Style Union, and Trends, along with their product offerings, pricing, and promotional strategies. A SWOT analysis of these competitors was conducted, and historical performance data from previous EasyBuy locations was reviewed with input from the Business Development and Marketing teams. Geographic and demographic analysis was also performed using Google Maps to study the 3 km radius surrounding the proposed store, with supplementary data collected from online sources on population density, age distribution, and income levels. Data analysis was conducted using SPSS and Excel. SPSS was utilised to identify correlations between key variables related to customer preferences, while cross-tabulation and bar graphs were employed to examine purchase behaviours segmented by age and average family income. This comprehensive analysis of customer demographics and purchasing patterns provided critical insights into the viability and potential success of the proposed EasyBuy store in Nagarbhavi. About Nagarbhavi Nagarbhavi is strategically located between Mysore Road and Magadi Road in West Bangalore. It is well-serviced by public infrastructure and has a mix of educational, residential, and commercial establishments. Known for its cultural vibrancy and middle-class population, Nagarbhavi is ideal for a value fashion brand like EasyBuy. Demographics Snapshot Demographic Category Details Age Group Distribution 0–14 years: 30% 15–24 years: 25% 25–54 years: 35% 55+ years: 10% Income Levels Low: 20% Middle: 60% High: 20% Gender Distribution Male: 52% Female: 48% Languages Spoken Kannada, Telugu, English, Hindi, Tulu, Konkani Competitive Landscape Competitors within 750 Meters Brand Distance from EasyBuy Store Layout Style Union 250 meters Ground + 3 floors Trends 270 meters Ground + 2 floors Zudio 300 meters Ground floor Avantra 450 meters Ground + 2 floors Pantaloons 500 meters Ground + 3 floors There are also non-competing brands nearby like Croma, Jockey, W, Go Colors, and Puma. Their presence helps in clustering benefits, boosting overall footfall. Catchment Study of Nagarbhavi (2020 Data) Catchment Study Of Nagarbhavi In the catchment study of Nagarbhavi, conducted through site visits and secondary information collected online, the following key observations were made in 2020: The total population was 123,649, with 65,260 males and 58,389 females. The 25-29 years age group appeared to be the largest segment of the population, followed by the 20-24 years age group, which also represented a significant portion. The 65 years and above category appeared to be the smallest segment, alongside other smaller segments, including the 60-64 years, 55-59 years, and 50-54 years age groups. In most age groups, the male population slightly outnumbered the female population, but there were a few exceptions where the female population appeared to be slightly higher. The data above shows various establishments within a 3 km radius of Nagarbhavi as recorded during a my site visit & with the help of Google Maps. These establishments have been categorised into different sectors such as retail, banking, entertainment, healthcare, etc., to provide a better understanding of the Nagarbhavi neighbourhood. The area boasts a significant number of fashion retail stores (35) and dining places (50), indicating a potential market for a variety of consumer goods and food services. The presence of multiple shopping chains, malls, and departmental stores suggests a well-developed commercial infrastructure. The availability of banks, ATMs, and fuel stations further supports this. A considerable number of dining places, multiplexes, clubs, parks, and gyms indicate a focus on leisure and entertainment. The area also caters to educational needs with colleges and schools, while healthcare services are provided through clinics and hospitals. EasyBuy Internal Insights Factor Insight from BD Team Catchment Analysis Family-centric & student-heavy area Relocation Strategy Moving from older Unlimited store to higher visibility zone Market Health Competitor stores lack modern appeal Customer Behaviour Preference for nearby, accessible retail stores Financial Viability Projected ROI meets EasyBuy's retail benchmarks Clustering Strategy Retail synergy due to proximity with non-competing brands Store Design Modern, open layout to differentiate from competitors SWOT Analysis Strengths Weaknesses High foot traffic due to nearby schools, colleges, and residences Style Union is next door and has strong brand equity Enhanced visibility with EasyBuy Totem signage Zudio and Pantaloons already have a market share Accessibility and convenience from 80 Feet Road Cluttered fashion retail market Opportunities Threats Offline shopping preference of locals Non-branded local markets offering cheaper options Proximity to leisure destinations Risk of customer churn without differentiated value Customer Survey Highlights Demographics of Respondents (n=87) Age Group Percentage Under 18 4% 18–24 23% 25–34 41% 35–44 31% 45+ 1% Gender Percentage Female 74% Male 24% Prefer not to say 2% Interpretation In the survey, 87 people participated, and the findings and analysis are based on the collected responses. The age distribution of respondents was as follows: 23% were aged 18 to 24, 41% were aged 25 to 34, 31% were aged 35 to 44, 1% were over 45, and 4% were under 18. Regarding gender, 74% of the respondents were female, 24% were male, and 2% preferred not to disclose their gender. Frequently Visited Stores vs Income Group Store ₹2L–₹5L ₹5L–₹10L ₹10L+ Zudio High Very High Moderate Style Union Moderate High High EasyBuy High High Moderate Pantaloons Moderate Moderate Moderate Max, Intune Low Low Low Interpretation Zudio has a strong presence across all income groups, with a significant number of customers in the ₹5,00,000 to ₹10,00,000 income bracket. Style Union also has a presence across income groups but shows a stronger inclination towards the higher income bracket (₹5,00,000 to ₹10,00,000 and more than ₹10,00,000). EasyBuy, Max, Trends, and Pantaloons seem to have a more balanced customer base across income groups, with a slightly higher concentration in the middle income brackets (₹2,00,000 to ₹10,00,000). On the other hand, Intune, Styleup, Local Shop, and Jack n Jones have a very limited customer base and don't show a clear pattern in terms of income distribution. When asked about their preferences, 36.8% of the respondents valued product quality the most, followed by 31% for affordable prices and 23% for a wide range of products. Trendy styles, good customer service, attractive promotions, and discounts received lower preferences. Brand Awareness & Marketing Influence Metric Result EasyBuy Brand Awareness 75.9% aware Have Shopped at EasyBuy 39.1% Discounts & Offers as Shopping Driver 64% respondents Social Media Campaigns & Contests 68% influenced Influencer Promotions 59% influenced In-store Visual Appeal 64.4% influenced SMS Notifications 44.8% effective INTERPRETATION Out of 87 respondents, 75.9% are aware of the brand EasyBuy, while 24.1% are not familiar with it. Among those who are aware of the brand, 39.1% have shopped at EasyBuy before, indicating that there is a significant portion of respondents who are familiar with the brand but haven't made a purchase yet. This suggests potential for increasing the customer base by converting those aware into actual customers. Marketing Strategies Factors Which Encourage More Interpretation Discounts and offers – A Significant majority, 64%, indicated that the presence of discounts and offers would serve as a strong incentive to visit the store. This suggests that nearly two-thirds of the participants are highly motivated by promotional activities when deciding whether to shop in-store. Special interactive events – Are highly effective in attracting customers to the store, as suggested by 54% of respondents. These events can significantly increase customer footfall, leading to enhanced engagement and sales opportunities. Influencer appearance and promotions & social media campaigns and contest – Out of 87 respondents, 51 (59%) are influenced by influencer promotions, while 59 (68%) are swayed by social media campaigns and contests becoming the second most popular marketing strategies that respondents prefer and encourages them to visit a new fashion store. This indicates that influencer promotions effectively build trust and credibility, whereas social media campaigns and contests are highly engaging and drive immediate participation. Attractive window display and in-store decorations – these two elements play a crucial role in drawing customers to a new store. This is supported by the fact that 56 respondents, constituting approximately 64.4% of participants, indicated that these elements would significantly encourage them to visit. Short Message Service (SMS) Notifications – Out of 87 participants, 39 believe that SMS notifications about store openings would encourage them to visit the store. In contrast, 19 participants are neutral on this matter, while 28 feel that SMS notifications are unlikely to influence their decision to visit. Challenges And Solutions Throughout the project, I faced several challenges. Finding a focus group that accurately represents EasyBuy's target audience was initially difficult, but involving a group of 15-20 interns within the target age range and with diverse backgrounds proved effective. Coordinating with multiple department personnel and ensuring timely approvals and project completion by Friday was demanding. To address this, I maintained an organised checklist of all processes and conducted regular follow-ups. Ensuring clear and consistent communication across various departments was also challenging. Using a detailed checklist and regular follow-ups helped keep the process organised and on track. Coordinating data collection from multiple sources and ensuring accuracy and completeness was another significant challenge. Implementing structured communication and systematic tracking streamlined data collection and presentation. Finding And Feedback The coordination among store managers could have been better anticipated to attract more participants. In addition, errors in saving participant information by the store after the gameplay resulted in the loss of half the data, leading to more gameplay than captured leads. The discount voucher offered to all the participants is a positive step. It could incentivise people to participate in future games and potentially convert them into customers of the EasyBuy store. References Your one-stop clothing store for men, Women & Kids. Easybuy. (2024, July 30). Brand Awareness: A Case Study on Zudio. ResearchGate, 2024, Gen-Z Marketing Strategies: Understanding Consumer Preferences and Building Sustainable Relationships.' ResearchGate , 2024, . About Landmark Group, files/About%20Landmark%20Group_2.pdf. About Us. Landmark Group, Landmark Group, Easybuy: Revolutionising Neo India's Fashion Retail. Images Retail, Magzter, Accessed 19 Aug. 2024. EasyBuy India Posts. LinkedIn, EasyBuy: Acing India's Clothing Market. TopPan Digital, Khan, M. N., & Khan, M. A. 'Role of Marketing Strategies to Generation Z in Emerging Markets.' ResearchGate, 2023, DOI:10.51659/josi.21.166[ Kumar, A., & Sharma, R. 'Measuring Marketing Strategies Used by Generation Z in Indian Market.' 2023, pp. 1-10, ( Nagarbhavi Overview Report.'GeoIQ, 2020, ( HSBC Staff Annual Party 2020, ( Experiential Marketing in the Fashion Industry.'Marketing Life, ( Fashion Brands Using Experiential Marketing for Studio, ( Fashion Experiential Marketing Trends Changing Retail. Cercone Brown, Experiential Fashion: 20 Examples of Brands Using Unique Hunter, Hernandez, J. C. 'Influencer Marketing and its Impact on the Fashion Industry.' Lund University, 2022,
Yahoo
19 hours ago
- Business
- Yahoo
Tinder unveils major update that changes how users date
Tinder is set to introduce a new double date feature in the UK from mid-July, targeting Gen Z and young women seeking less intense dating scenarios. The dating app's new function allows users to team up with up to three friends, creating a pair that can then "swipe right" on other pairs. A match is made when just one like is registered from each pair, leading to the creation of a group chat where the two pairs can message each other and coordinate a date. After testing the feature in several international markets for months, Tinder reports it has been successful in attracting young people and women who are looking for a more relaxed and social approach to meeting new people. According to its internal data, nearly 90 per cent of double date profiles came from users under the age of 29. Generation Z – which is typically defined as those born between 1997 and 2012 – make up more than half of Tinder's global user base. The platform has been ramping up efforts to retain women and Gen Z users following the Covid pandemic, growing safety concerns and a broader shift in the way younger people approach dating. This has included rolling out additional safety features such as ID verification and 'share my date' – which allows users to share details of their date, including the time, place, and a photo of their match, with friends and family. Tinder, which launched in 2012, helped bring online dating into the mainstream and is now the world's most-used app with about 50 million users per month. The Los Angeles-based company is owned by Match Group, which owns a raft of dating platforms including Hinge and OkCupid. Data from the testing stage showed women were three times more likely to like a pair than they were individual profiles, and match rates have been significantly higher for those using the feature. Furthermore, Tinder said it was helping attract new and returning users to the app – with nearly 15% of those who accepted a double date invite either new to the platform or had recently reactivated their profile.
Time of India
a day ago
- Business
- Time of India
Artificial intelligence or inflated illusion? Why 62% of Gen Z are not buying the AI dream
Artificial Intelligence, often sobriqueted as a magic wand in the tech world and a saviour technology, is facing an identity crisis. Long billed as the crown jewel of 21st-century innovation, its shine is waning, especially among Generation Z. The generation known for growing up on screens and swiping through knowledge is now casting a skeptical eye on the current, emerging definition of the "future of work." According to GoTo's Pulse of Work 2025 report, 62% of Gen Z workers believe AI is significantly overhyped. That's not a passing complaint, it's a cultural reckoning. In an age where tech solutions are expected to be both omnipresent and omnipotent, AI's reality hasn't lived up to its relentless publicity. But why is the so-called "AI native" generation, who feeds excessively on a digital diet, crying wolf on AI? The answer resides not in ignorance, but in critical scrutiny. Gen Z is not anti-tech, they're anti-hype Is Generation Z, the most tech-prowess generation apprehensive of the potential of Artificial Intelligence? No. As the headlines have often dominated and well-labelled the current generation to be the most rebellious, continuously challenging the status quo. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Memperdagangkan CFD Emas dengan salah satu spread terendah? IC Markets Mendaftar Undo It is slightly unbelievable on their part to be afraid of a technology that helps them become more productive. T his generation has seen the full lifecycle of tech trends, from meteoric rises to embarrassing crashes. From the crypto bubble to the metaverse misfires, Gen Z has learned that not all that glitters in tech is gold. So when it comes to AI, they're not mesmerized by the buzz, they're asking the hard questions. Is AI error-free? Not quite. Does it understand context? Rarely. Can it replace human empathy or judgment? Certainly not. And so, instead of blindly keeping machines over humans, Gen Z workers are taking a beat. They are cross-checking AI results, validating claims, and challenging assumptions. It is this instinct to 'trust, but verify' that is demarcating them from older generations who may view AI as a turnkey solution. According to the GoTo report, 68% of workers believe AI is misrepresented as flawless and infallible, while 64% say it's wrongly touted as a one-size-fits-all fix. Gen Z is not falling into the trap. They have learnt it better not to place blind faith in an algorithm with a knowledge cutoff and no conscience. AI isn't delivering on the ground With all of the AI talking, there is another interesting revelation in the report. And, here's the catch: 86% of employees across generations admit they're not using AI to its full potential, with Gen Z clocking in at a surprising 78%. The reasons are as compelling as troubling. For freshers, 74% of Gen Z workers have agreed they are not very conversant with the practical applications of AI in their own roles. While they know how to generate content using ChatGPT or automate a workflow with Zapier, they grapple to marry these tools to measurable business outcomes. Many are simply utilising AI for surface-level tasks, like, emails, edits, maybe a bit of ideation, but for not for high-impact work like strategic planning or analytical decision-making. So yes, the toolbox is there. Is it gathering dust? Not literally. However, as the saying goes, "having the keys to the kingdom means nothing if you don't know which door to open.' Underutilization: A missed opportunity worth trillions The cost of this underutilization is staggering. According to GoTo, employees waste 2.6 hours per day—13 hours per week—on tasks AI could easily handle, amounting to a potential $2.9 trillion in annual productivity gains for U.S. businesses alone. That's not just a dent in efficiency, it's a canyon-sized crater. Yet, even with a different picture that is presented, the Generation Z remains unconvinced. It is not the fact that they are treating AI as the scapegoat. However, they are not absolutely fanatical about its potential. The reason? They are weighing AI by not its theoretical promises but its practica traction. According to them, the reality meeting the hype is a far cry. Why Gen Z isn't putting AI to work (yet) The Generation that is often labelled as 'lazy' and unwilling to work is apprehensive of putting AI to work. Is this an ingrained psyche, or does the stance carry weight? Here are a few reasons that substantiate the reason young workforce is not trusting the bots. Lack of contextual training Even the most intuitive AI tool is only as effective as the person operating it. The report reveals that 82% of employees aren't confident in applying AI to everyday work scenarios, and 87% say they haven't received proper training. Yes, Generation Z is tech prowess but it is a false belief that they do not need training. They need guidance, not just to access, but to make AI work for them. Trust deficit While AI is the talk of the town, its famous anecdotes of inaccuracy and errors is not completely unheard of. Hence, 86% of employees aren't confident in the accuracy and reliability of AI tools. Gen Z, in particular, has seen AI hallucinate answers, spread misinformation, and struggle with nuance. They'd rather do the legwork themselves than gamble on flawed outputs. Misaligned use cases AI has taken birth to automate repetitive tasks, many Gen Z users are experimenting with it in emotionally sensitive or ethically grey areas, like conflict resolution or strategic planning where it is deemed to falter. This mismatch further reinforces their belief that AI is not all it is cracked up to be. Bridging the chasm: Turning skepticism into strategy The ordeal is not that Gen Z doesn't believe in AI; it is that they are screaming no to using it blindly. With the apprehension of AI replacing humans floating around, they know it is a shallow stance. And perhaps, that is a clarion call for the corporate world. To unlock AI's full potential, companies must meet Gen Z where they are: Provide targeted training that's tailored to roles, not generic toolkits. Craft smart policies that offer clarity, not just control. Democratize access to advanced tools, especially in smaller organizations where the adoption gap is steep. With 61% of workers stating they'd prefer advanced AI tools over office perks, the message is clear: If companies want buy-in, they need to invest not just in tech, but in trust, training, and transparency. A generation that demands more than hype Gen Z's skepticism is not a roadblock; it is a much-needed reality check. As the first generation to truly grow up alongside technology, they are uniquely positioned to ask the right questions: What does this tool actually solve? And at what cost? Their critical lens is not an indictment of technology, but a call to use it wisely. Rather than clapping for every algorithmic advance, these digital natives are urging both technologists and employers to ensure that AI is transparent, trustworthy, and truly transformative. They are not shrugging off the presence or even potential of AI, they are raising the bar for it. In an era rushing headlong toward automation, Gen Z is not slamming the brakes. They are simply steering us toward a more thoughtful, human-centered future, where intelligence, artificial or otherwise, is held to account. Is your child ready for the careers of tomorrow? Enroll now and take advantage of our early bird offer! 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Yahoo
a day ago
- Business
- Yahoo
Luxury confronts slowdown amid economic headwinds and market disruptions, while industry resilience and strong fundamentals underpin future prospects
Turbulence set to be sector's new baseline for extended period as economic uncertainties and cultural shifts impact demand. But positive longer-term outlook requires brands to decode the new market rhythm and go back to fundamentals on brand value propositions MILAN, June 19, 2025 /PRNewswire/ -- The global luxury sector this year confronts its most far-reaching disruptions – and its biggest potential setbacks for at least 15 years – amid mounting economic turbulence, alongside complex social and cultural shifts, Bain & Company, in partnership with Altagamma, the Italian luxury goods industry association, reports today. Worldwide luxury spending, historically sensitive to uncertainty, is coming under intensified pressure as luxury consumers' confidence is eroded by current economic upheavals, geopolitical and trade tensions, currency fluctuations, and financial market volatility, today's report warns. This is despite a relatively upbeat end to 2024 for the luxury sector, bolstered by a double-digit rise in tax-free spending in Europe, as well as decreased US market volatility at the time. Heightened volatility for the luxury industry is being exacerbated by increasingly exposed cultural fractures for the sector, today's report cautions. Luxury brands are contending with not only weakening consumer sentiment but also a growing disillusionment with their offerings among younger generations, notably Generation Z. This trend is calling into question the luxury sector's long-standing price-to-value equilibrium as a growing group of younger consumers reassess their relationship with luxury. A series of further, critical stresses are also weighing on the luxury industry, Bain reports. Distribution channels – especially physical and digital multi-brand outlets – are grappling with financial pressures as industry players seek to stabilize debt and preserve liquidity, with some engaged in restructuring. Alongside, the industry's innovation engine appears to be losing momentum and appeal, while the creative leadership that is vital to the sector is under strain and rotating across brands. Supply chains are also under growing stress as geopolitical challenges grow and regulatory oversight increases. As these disruptive forces converge as headwinds for luxury businesses, the report cautions that turbulence may be luxury's new baseline for an extended period – and that the €1.5 trillion revenue industry faces its first slowdown since the global financial crisis of 2008-09, excluding the temporary shock of the Covid-19 pandemic. For the personal luxury goods segment, a potent post-pandemic rebound saw the market reach €369 billion in 2023. But this slipped last year to €364 billion, down 1% at current exchange rates (flat when adjusted for currency movements) and Q1 of this year is expected to have seen a further slide of between 1% and 3% at current exchange rates. Long-standing resilience buttresses future performance Yet despite volatility becoming 'business as usual', today's analysis underlines the luxury industry's long-standing resilience in the face of such challenges, as well as significant outperformance by some key segments and geographies. Bain urges the industry to respond to present disruptions by refocusing on the fundamentals of the luxury business, grounding value propositions in clear and differentiated brand identities, anchored in strong product quality and thoughtful price architectures. Brands should pursue efforts to nurture consumers' desire and shape clear and unique positioning towards their customers. "Although demand is easing in the short term, the luxury sector has consistently demonstrated an extraordinary resilience – buoyed by a growing global consumer base and deeply rooted emotional drivers," Claudia D'Arpizio, Bain & Company senior partner and global head of the firm's Fashion and Luxury practice, said. "Across generations, drivers linked with self-reward, status, personal identity, and the celebration of achievements will continue to drive engagement, reinforcing and building the lasting relevance of luxury within its consumers' lives." Federica Levato, Bain & Company senior partner and leader of the firm's Fashion & Luxury practice in EMEA, added: "As the industry faces an increasingly complex global landscape, luxury brands are entering a pivotal new chapter – one that demands sharper focus, greater cultural relevance, and growth rooted in purpose. At the heart of this transformation is a redefinition of value and meaning that resonates across all generations – with those shaping luxury today, and those who will define it tomorrow." Personal luxury goods likely set for a 'continued slip' With the personal luxury goods segment still confronting a deceleration this year despite the resilience of the industry, Bain maps out three possible scenarios for market this year. On what the report sees as the likeliest projection, of a "Continued Slip", it envisages a further, moderate decline for the market and a full-year contraction of between 2% and 5%. A more optimistic scenario, for an "In-year Rebound" – one that is not considered overly likely by Bain– would see 2025 end with the market somewhere between 2% smaller and 2% larger. On the report's most severe scenario, for a "Demand Dip", also not seen as the most likely, personal luxury goods would endure a prolonged downturn, with the market shrinking by 5% to 9%. Experiential goods lead the field as some segments outperform Despite the weaker outlook for luxury goods, some important luxury segments continue to outperform, the report highlights. In the first quarter of 2025, experiential luxury notably continued to outpace its tangible counterpart. Luxury hospitality remained especially buoyant in Q1, fueled by rising hotel occupancy rates and extended stays, reflecting consumers' appetite for personalized experiences. Luxury cruises, meanwhile, sustained interest in immersive, slower travel on smaller vessels, while private jets and yachts enjoyed solid order backlogs and growing charter demand. Gourmet food and fine dining capitalized on curated, restaurant-style offerings at home. But not all categories were spared setbacks. Fine wines and spirits suffered stagnating demand. Car sales became increasingly polarized, with the ultra-luxury segment thriving as aspirational segments faltered. The fine arts market began the year sluggishly, though signs of normalization have since emerged. The high-end furniture market showed early stabilization, thanks in part to the contract channel (mostly within the hospitality and residential segment). Polarization and divergence mark market evolution As luxury businesses grapple with the new uncertainties, Bain notes a widening performance gap between leaders and laggards in the industry. In the first quarter, this gap – measured by relative revenue growth of brands – widened to 1.5 times the size versus Q1, 2024. Top performing brands' growth rates remained steady versus last year, while a smaller group of laggards lost momentum. This divergence in performance is one important facet of growing polarization in the luxury industry also manifested by varied performance between geographies and in important generational shifts, Bain's report highlights. The global geography of luxury presents a complex landscape. Both the US and mainland China, two of the most important luxury markets, are undergoing a period of softened demand due to current economic turbulence. Tariff-induced volatility is affecting the US market and consumers' willingness to spend. In China, the country's key middle-class markets are in "wait-and-see" mode. Despite this, the report points to glimmers of hope for the medium-to-longer term, with American consumers signaling appetite for accessible luxury while high-spending customers remain resilient. Meanwhile, in China, consumer interest for 'new' local luxury brands is progressively picking up (although still small in absolute terms), while "essentials products" are outperforming the market average, and an outdoor craze is driving growth for experiences. In both Europe and Japan, markets are impacted by weakening tourism, but local demand is partly offsetting the decline. Europe is seeing continuing interest in jewelry and ready-to-wear clothing, particularly in destination markets and for value-driven formats. In Japan, limited editions and beauty products are driving momentum. Conversely, luxury markets in the Middle East, Latin America, and parts of Southeast Asia remain robust. Countries such as the UAE, Mexico, and Indonesia are benefiting from strong local demand as well as new tourist inflows. Generational complexities unfold amid age-driven trends Demographic divergence in consumer behavior across age groups amid softening luxury spending is another critical trend, the report observes. "Generation Z" is split between a perceived need for self-expression and a desire for conformity. These young consumers are seeking creativity, excitement, and emotional re-engagement. Millennials are, meanwhile, more cautious due to financial pressures but still responding to fresh brand engagement. Older consumers are prioritizing meaningful experiences over goods. Overall, engagement with brands across demographics has declined since 2022: brand-related searches are down for more than 40% of the brands, social media follower growth has plummeted 90%, and engagement rates are off by 40% –largely due to price fatigue and stagnant creativity, Bain concludes. In turn, brands have begun to pursue efforts to nurture consumers' desire through new, experiential formats, category diversification, "beyond product" experiences, and increasingly through a new wave of creative change. Within the personal luxury goods market, divergence is also apparent in varying performance across categories, the report notes. Jewelry, apparel, and eyewear remain strong, with positive performance for "uber-luxury" items, as well as in the aspirational segment. The fragrances market is benefiting from "premiumization", while the skincare market is holding steady but the makeup segment lags. Watches, leather goods, and footwear are facing headwinds unless backed by true innovation, the report says. Even if the price points continue growing by 2 to 3% on average, brands are subtly reinforcing entry-price strategies to broaden their appeal without eroding brand equity, with winning cases underpinned by combination of true newness and a unique brand point of view, Bain notes. Competition intensifies while channels evolve Amid these extensive shifts in global luxury, competitive forces are also changing fast, the report finds. Traditional brands, stuck in diluted identities and lookalike aesthetics targeting the same consumer pools, are losing ground to more agile, culturally-rooted luxury rivals. These insurgent brands are blending authenticity with modern strategy. In the West, newer players are gaining traction with strong value propositions and more accessible pricing, presenting a real opportunity for brands capable of redefining relevance in today's fragmenting market. Retail is also being reimagined. The multi-brand channel, long valued for discovery and curation by luxury brands, is under mounting pressure. Despite continued consumer interest, over 70% of luxury brands are pulling back volume from these retail platforms amid their financial struggles. To remain vital, multi-brand players must evolve – deepening customer engagement, supporting emerging brands, and delivering standout service across the journey, the report recommends. Profitability remains under pressure Profitability across the overall luxury industry remains under pressure. Despite the revenue peaks seen between 2018 and 2021, margins (defined by earnings before interest and tax, EBIT) have consistently lagged. From 2021 on, margins either stagnated or declined, even among top performers, highlighting the need for a more disciplined focus on performance improvement by the industry's players to sustain short-term results while enabling longer-term strategic investments. To guarantee future profitability and operational resilience for luxury businesses, technology – especially the use of AI – along with advanced clienteling, supply chain modernization, marketing technology, and more sophisticated pricing analytics, will be essential levers, Bain advises. Expanding markets map the road ahead Despite short-term volatility for the luxury industry at present, its long-term fundamentals and prospects remain strong, today's report concludes. Over the next five years, more than 300 million new consumers – over half of these in Generation Z or Generation Alpha – are expected to enter the market. Rising global incomes, generational wealth transfers, and a projected 20% increase in the number of high-net-worth individuals will further expand the pool of potential luxury buyers, Bain notes. But it cautions that realizing the potential growth of this expanding market will require action from the industry's players. Brands will need to rethink how they engage younger consumers, avoid over-reliance on top spenders, and build emotional connections that go beyond transactional loyalty. Claudia D'Arpizio commented: "To navigate today's uncertainty, brands must anchor themselves in their core strengths – prioritizing quality, creativity, and authenticity. Deepening consumer relationships is essential, shifting away from push marketing toward seamless, customer-centric experiences across every touchpoint." Federica Levato added: "At the heart of this shift lies a more fundamental question: who are we as a brand, and what do we stand for? Answering this with clarity and conviction will be critical for any brand aiming not just to endure, but to lead in this new era of transformation." 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