Legacy brands look to Generation Z as the population’s purchasing power grows, but businesses need to learn how these shoppers think differently about luxury. The fashion marketplace and resale platform StockX, on which 70% of users are under 35 years of age, has been observing how their consumption habits develop since 2016 – and is making changes easier. StockX started out as a place for sneakerheads to buy and sell infrequent kicks. Since then, the company has expanded its focus to include designer bags, clothing, accessories, and even trading cards.
Designer collaborations are big in the world of luxury resale as younger buyers view these limited edition goods as assets. According to StockX’s new big facts report, the company has seen a 200 percent increase in designer collabs traded on its platform over the past two years.
- “[Designer collabs are] partly desirable because they are rare limited editions. It’s not that a very similar version of this product will hit the market next year, which may be the case with other releases. It’s creating hype, ”Deena Bahri, CMO of StockX, told Retail Brew.
The hype is real: Investors are getting younger. See the rise of Robinhood and #stonk Memes as further evidence. “Be cost-conscious and committed [securing] Shaping their financial future as early as possible, combined with the opportunities a digital world has opened up, Gen Z shows a keen sense of entrepreneurship and an interest in creating multiple sources of income, ”said Hana Ben-Shabat, founder of the research company Gen Z Planet, told us.
- “Platforms like StockX give them this opportunity to buy and sell products. By reselling an item, you can cover part of the acquisition costs or even make a profit on luxury goods. “
A recent Harris poll shows that 23% of US adults have bought or plan to buy limited edition sneakers this year. 37% of them see shoes as an investment opportunity. In 2020, StockX enabled over 7.5 million trades while the number of active buyers grew more than 90% year over year. StockX generated $ 1.8 billion in gross product value (GMV) in 2020.
“Our consumers have a very strong interest in having more investment offerings,” Bahri from StockX told us. “That can be digital assets, that can be a partial participation in the purchase of assets. The line between goods and assets is blurring and the whole space is very fertile. “
Kaws x Uniqlo Tees investors have returned 82% on their portfolio over the past two years, according to StockX data. Meanwhile, searches for collabs on StockX are increasing.
- The search queries for “Bape x Coach” increased by 1,680% year-on-year.
- Crocs is up 430% year over year after partnering with celebs like Justin Bieber, Bad Bunny and Post Malone.
- The search queries for “Birkenstocks” increased by 610% year-on-year. The company recently worked with designers like Jil Sander and Rick Owens.
All eyes on the next generation: Gen Z leads the trends and doesn’t follow them. StockX is seeing new growth in the population over 45 this year. “It speaks to the influence of Gen Z and young millennials on the older set, while historically it has been the opposite,” Bahri told us. “The rest of us follow this next generation.”—JG