Generation Z increasingly couldn't care less about luxury brands

The market for luxury brands like Gucci and Burberry continues to shrink.

Transcript

00:00I'm Conway Gittens reporting from New York.

00:01Here's what we're watching on the street today.

00:04Wall Street had a down day Thursday in a speech.

00:06Federal Reserve Chairman Jerome Powell

00:08said the Fed does not have to be in a rush

00:11to lower interest rates.

00:12Meanwhile, Walt Disney topped quarterly forecasts,

00:15due in large part to success on the big screen

00:17and with its streaming business.

00:20All eyes now turn to Friday's retail sales report.

00:24Sticking with retail, 2024 is not likely to be a great year

00:28for high-end consumer product brands.

00:31The market for global luxury products

00:33such as Gucci, Louis Vuitton, and Burberry

00:36is on track for an annual 2% drop.

00:39That would make this the worst year

00:40since the global financial crisis back in 2008,

00:43excluding the year of the pandemic lockdown.

00:46According to Bain & Company's annual luxury report,

00:49demand is lackluster due to global unease

00:52and changing tastes within a specific age group.

00:56Quote, this trend, particularly acute among Generation Z,

01:01whose advocacy for luxury brands continues to decline,

01:05has led to a shrinking luxury customer base

01:08by a magnitude of about 50 million over the last two years.

01:12The findings were backed up by dismal results

01:15out of Burberry.

01:16The fashion house posted a 20% drop in sales

01:19for the second straight quarter.

01:22But it's not all doom and gloom out there in luxury world.

01:25Small luxuries such as beauty products,

01:27luxury perfumes, pricey eyewear, and jewelry

01:31are still holding strong in the U.S. and Europe.

01:35That'll do it for your daily briefing from New York City.

01:38I'm Conway Gittins with The Street.