What: Gen Z and Gen Alpha are reshaping the US fashion industry by prioritizing authenticity, digital engagement, and product value over traditional brand loyalty.

Why it is important: The rise of AI and social commerce among young shoppers is accelerating changes in retail strategy, echoing insights from the past year’s market analyses.

Gen Z and Gen Alpha are fundamentally changing the US fashion industry, with their influence projected to account for more than 40% of fashion spending in the coming decade. These generations are redefining what matters in retail, moving away from traditional brand loyalty and heritage in favor of authenticity, cultural relevance, and community-driven engagement. Their shopping journeys are increasingly digital, with social media evolving into a direct commerce platform and AI tools becoming central to product discovery and decision-making. Young consumers are more likely to seek inspiration from influencers and peers, value personalization, and expect seamless digital experiences. At the same time, they are highly price-conscious and focused on product quality, often mixing established and emerging brands to express their individuality. Retailers are being challenged to adapt quickly, embracing new technologies and strategies to remain relevant and competitive in a landscape where the pace of change is set by the next generation of shoppers. 

IADS Notes: The transformation led by Gen Z and Gen Alpha is clear, with these generations expected to drive more than 40% of US fashion spending in the next decade, fundamentally changing how brands connect with consumers, as shown in the BCG/WWD report from October 2025 and Retail Week in February 2025. Their growing influence and shifting priorities, highlighted by WWD in May 2025, are pushing retailers to rethink what truly matters to shoppers, with a stronger focus on personalization, convenience, and digital-first experiences. The traditional weight of brand heritage is giving way to authenticity and youth culture, a shift explored in LUXUS PLUS from December 2024 and March 2025, and Inside Retail in September 2025. The rapid rise of social media as a direct shopping platform is evident in Forbes and Supply Chain Movements from early 2025, while the widespread use of AI-powered shopping tools, as reported by Vogue Business and CB News in May and February 2025, is changing the way young consumers interact with brands. Finally, as seen in WWD in May 2025, BoF in January 2025, and Vogue Business in November 2024, young shoppers are making choices based on product quality and price rather than brand loyalty, prompting brands to deliver genuine value and stand out in a fast-moving, competitive landscape.

How Gen Z and Gen Alpha are rewiring the fashion industry- article

How Gen Z and Gen Alpha are rewiring the fashion industry- full report