Abstract:
Predicted to represent the majority of luxury spending in the coming years, Generation Z is redefining the meaning of luxury. It is generally acknowledged that luxury does not have a precise and unique definition as it depends on the individual perception of consumers, influenced by a multiplicity of factors. By taking into consideration the multifaceted elements influencing Gen Z, including socio-economic dynamics, sustainable and ethical concerns, and the substantial impact of social media and technology, this thesis is aimed at exploring the meaning of luxury for the Italian Generation Z. Besides illuminating the perception and definition of luxury and the main motivations behind the choice of a given brand according to this Italian cohort, the study additionally investigates the implications on branding and marketing strategies and the need for companies to adapt in order to remain sustainably competitive in the luxury market. Recently, there has been a vast expansion in the luxury landscape. While extensive literature about previous generations of consumers is present, little is known about the concept of luxury in relation to Generation Z, seen as a key driver for the future luxury market growth, especially considering the Italian landscape. In order to investigate the previously mentioned matters, an extensive literature review forms the foundation of the thesis, exploring the evolution of luxury from a historical perspective to its current state in the digital era. The perception of luxury is examined, highlighting the generational contrasts that delineate Generation Z’s perception of luxury from those preceding it. The characteristics and consumer behavior of this generation are analyzed with a particular lens on socio-economic, sustainable, and ethical concerns and on the influence of social media and technology. Emerging trends are further explored, leading to insights on authenticity, personalization and customization, and escapism as essential in defining Generation Z’s consumption patterns. Subsequently, the methodology chapter outlines the systematic approach employed in gathering and analyzing primary data, the findings of which will be further discussed, offering valuable insights to academia, industry, and society. Concluding the thesis, the final chapter summarizes the synthesized results, reflecting on the data to offer a perspective on how luxury brands must evolve to resonate with Generation Z. Recommendations for marketing strategies are offered to maintain relevance and engage this influential consumer segment effectively.
