Gen Z isn't letting the economy keep them from living their most luxurious lives. They're just buying stuff secondhand instead. (2024)

FAQs

Why are Gen Z buying second hand? ›

Coupled with the cost-of-living crisis, Gen Z will continue to power the thrift movement in search of more affordable alternatives in the year ahead. In this blog, we explore the drivers behind Gen Z's resale purchase habits and where the next big secondhand opportunity lies for 2024.

Gen Zers face greater obstacles to financial success

Not only are their wages lower than their parents' earnings when they were in their 20s and 30s, but they are also carrying larger student loan balances.

Gen Z Struggles With Mental Health

According to McKinsey, over half (55%) of Gen Zers report having either been diagnosed or receiving treatment for a mental health condition, compared to 31% of people aged 55 to 64, who have had decades longer to seek and get treatment.

Gen Z members (born between 1997 and 2012) have been hit harder by inflation than all other age groups, and the effects could cast a shadow over their financial health for years to come, according to studies by Moody's Analytics and TransUnion, the credit reporting agency.

Online sales give young people access to brands: Gen Z is making luxury purchases at a younger age than previous generations largely because they have easy access to brands in the palm of their hands. Online luxury fashion brands and other luxury companies' websites and social media pages are big with Gen Z.

Some of this growth can be attributed to Gen Z and their affinity for thrifting and secondhand shopping. The rise of thrifting has disrupted the traditional retail model, highlighting Gen Z's love for affordable, unique, and sustainable fashion.

From increasing economic challenges to job market competition and stagnant wages, there are many obstacles in modern life. Three women from Generation X have told Newsweek why they believe Generation Z has it worse. There is no longer classes—there is just the elite, then everyone else.

Only the oldest Generation Z members have joined the workforce, and nearly two-thirds (65.5%) of them live paycheck to paycheck. A total of 64.44% of Gen Zers struggle with high monthly bills. Low income poses a problem for 57.78% of them, and unexpected emergencies derail nearly half (48.89%) of Gen Z budgets.

Gen-Z feels substantial anxiety and stress about jobs, long-term financial stability and major life steps, such as buying a home and starting a family. The current economy and job market are primary sources of uncertainty for this generation, according to EY's 2023 Gen-Z Segmentation Study.

What is Gen Z most stressed about? ›

From issues like discrimination and human rights to personal safety and violence, it's all stressful to younger Americans. But, like their older counterparts, health- and finance-related concerns topped the list of stressors.

1 thing that influences Gen Z's happiness is having a purpose. One of the most significant findings of the survey is that what influences the happiness of Gen Zers the most is “their sense of purpose at work or school.”

Prior research suggests that inflation hits low-income households hardest for several reasons. They spend more of their income on necessities such as food, gas and rent—categories with greater-than-average inflation rates—leaving few ways to reduce spending .

The Silent generation describes adults born from 1928 through 1945. Children of the Great Depression and World War II, their “Silent” label refers to their conformist and civic instincts. It also makes for a nice contrast with the noisy ways of the anti-establishment Boomers.

Inflation Impacts Lower-Income Consumers

But earners with lower income spend a relatively large proportion of their weekly or monthly household budgets on food and energy, commodities that are hard to substitute or go without when prices spike.

ThredUp estimates that the U.S. secondhand market will reach $73 billion by 2028, increasing an average of 11% annually. Globally, ThredUp predicts that the secondhand apparel market will reach $350 billion by 2028, up from $197 billion in 2023 and $141 billion in 2021.

Gen Z spending habits show they care the most about fashion, makeup and beauty products, technology, and their pets. This is perhaps due to their young age and few major bills.

In the first quarter of 2023, a third of surveyed consumers indicated engaging in secondhand shopping. Among the respondents, Gen Z constituted the highest percentage at 42 percent, followed closely by Millennials at 39 percent.

3 They are less likely than other generations to be brand loyal as traditionally defined. If brands are slow to engage or break their promises, then Gen Zers will quickly switch to a competitor. Brand loyalty and brand enthusiasm are often incorrectly used interchangeably.