New BCG and Women's Wear Daily (WWD) Report Reveals How Younger Consumers Are Reshaping Fashion Through AI, Social Influence, and New Definitions of Brand Loyalty
BOSTON, Oct. 29, 2025 -- Gen Z and Gen Alpha are projected to account for 40% of fashion spending within the next decade. These generations spend 7% more of their disposable income than previous generations on clothing and shoes. Fashion also serves as the entry point to AI for many young consumers, with 41% of Gen Z and Gen Alpha using AI weekly to shop for fashion items compared to 34% of older generations.
These are among the findings of a new report from Boston Consulting Group (BCG) in collaboration with Women's Wear Daily (WWD), titled How Gen Z and Gen Alpha Are Rewiring the Fashion Industry. The report explores cross-generational preferences and expectations, based on a survey of more than 9,000 US consumers and analysis of over 50,000 social media posts. The report's findings were presented at the WWD Apparel & Retail CEO Summit, coinciding with WWD's 115th anniversary.
"Younger consumers represent one of the most powerful spending forces in fashion, yet they are also the hardest to win and keep," says Mrin Nayak, a BCG managing director and partner, and a coauthor of the report. "Their shopping patterns are fluid and unpredictable, driven by a search for brands that reflect their values and identities while maintaining cultural relevance. Winning them over represents a defining opportunity for brands to build long-term loyalty."
"This is a defining moment of opportunity for brands to engage a new generation of consumers in more meaningful ways," says Amanda Smith, CEO of Fairchild Media Group (which includes WWD, Beauty Inc, Footwear News, and Sourcing Journal). "Gen Z and Gen Alpha are reshaping the fashion landscape through new expectations around authenticity, personalization, and digital innovation. WWD is proud to partner with BCG on this report to help the industry understand these shifts and translate insight into action and growth."
The Influence of Influencers
Young consumers are 1.5 times as likely as older generations to discover brands through social media. They also view digital creators and influencers as having the same status as celebrities. Micro-influencers, who have fewer than 100,000 followers, are nearly as influential as celebrities with over 1 million followers: 22% of young consumers use micro-influencers for brand discovery, and 27% use celebrities for this purpose.
Additionally, Gen Z and Gen Alpha are 1.3 times as likely as prior generations to cite high follower counts or social media engagement as a driver behind brand status, and 2.0 times as likely to cite influencer content as a reason for conversion.
Artificial Intelligence as a Co-Shopper
Across generations, millennials and older generations are slightly more likely to use AI weekly than Gen Z and Gen Alpha (58% vs. 51%). But younger generations are more likely to use AI to shop for fashion items (41% vs. 34%)—and high-spenders from Gen Z and Alpha are twice as likely to be frequent AI users.
With major platforms now offering AI agents and new in-chat commerce capabilities, younger shoppers are turning to AI to discover new trends, get style advice, visualize outfits, and compare prices across retailers—making AI a trusted co-shopper.
A New Era for Brand Loyalty
Gen Z and Gen Alpha are proving to be product-loyal, not brand-loyal. They are 20 percentage points less likely than older generations to buy the same brand consistently, instead seeking out distinctive products that are unique and emotionally resonant. Further, nearly 50% of young consumers expect personalized attention and tailored product recommendations from brands.
Download the report here:
https://www.bcg.com/publications/2025/how-gen-z-gen-alpha-rewiring-fashion-industry
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