Generation Alpha: How fashion players can target tomorrow’s consumers

Generation Alpha refers to individuals born from 2010 onward. As the first generation to be fully born in the 21st century, they are growing up in a world marked by rapid technological advancements, social changes, and environmental consciousness. While they do not yet earn their own money, they’re already very influential on their parents’ spending decisions and by 2040, they will become the largest generation of active consumers.

Connecting with these younger consumers becomes therefore a strategic decision to ensure one’s business future. Countries like India, China, the US, Indonesia, and Nigeria, with their large Generation Alpha populations, present huge opportunities with Gen Alpha consumers, in particular.

It goes without saying that such a large group of individuals across very diverse markets will have a wide range of needs, attitudes and behaviours, and Gen Alphas should not be seen as a homogenous group. However, we have identified a few characteristics that fashion companies need to consider when developing strategies to expand their reach toward these demographics.

Interactive experiences and gamification will be prerequisites to engage with Gen Alphas

Digital platforms are a must to engage with Generation Alpha, a cohort known for its seamless integration with technology and who learns about money through online video games currencies such as Robux which allows you to purchase upgrades for your Roblox avatar. In fact, increased use of social media and the growth of gaming platforms such as Roblox, Minecraft or Fortnite give opportunities for Gen Alpha to connect with those with similar interests to them, shaping their sense of community. But rather than passively consuming content, they rather want to actively co-create and give their opinion. This will shape their preference for brands that invest in technology like AR/VR and AI and create games and content that entertain them and tell them about their products and brand values through interactive experiences. This is why we have seen a flurry of brands experimenting with this, such as Spanish retailer Mango launching a virtual store filled with its Mango Teen products in Roblox's Outfit Shopping Mall, a digital meeting point where the platform’s users can try on and purchase digital garments, in early 2024.

Customization and personalization will become a must

Gen Alpha’s affinity for tech and the acceptance of it to get a better, faster service also sets expectations among this cohort that brands should get to know them individually, personalise their services and offer them products that allow self-expression. The ability to create unique fashion items will appeal to this generation who grows up using filters on social media and interacting with avatars and digital characters they can style as they wish.

his creates a tremendous opportunity for the fashion industry to innovate with products and services allowing customisation and creativity. A great example of this is the success of the Jibbitz - the small charms that can be pinned to Crocs shoes, allowing young consumers to customise their sandals and change their style regularly - that account for nearly 10% of the Crocs brand’s sales nowadays. In future, we can also imagine Alphas’ appetite for tech and personalisation will drive demand for smart clothing such as apparel embedded with sensors that track the wearer’s health metrics, adjust temperature, or even change colours based on user’s mood or environment.

Not buying sustainable products yet, but very environmentally aware

Even if Gen Alphas might not currently be able to afford sustainable products with their pocket money, it is becoming impossible for them to ignore the pressing issues facing the planet. We can expect that as they grow older, the environmental emergency will shape their purchasing decisions (and educational and career aspirations). All the more since regulation, in particular in the EU, will likely force business across industries to be more circular and reduce their negative impact. Generation Alpha has been exposed to discussions about climate change and environmental degradation since their early years. Schools are increasingly integrating topics on sustainability, ensuring that children understand the implications of their actions on the environment early on. Moreover, digital platforms and social media have not only disseminated information about the climate crisis, but also represented diverse ethnicities and body shapes, while fostering a sense of global community and shared responsibility among this consumer group. In fact, the older Gen Alphas are already very aware they face the direct consequences of climate change within their lifetime and expect brands to take action to ensure their quality of life in the years to come, while reflecting their diverse and multifaceted world - through inclusive sizing, gender-neutral clothing, and showcasing diverse ethnicities, body types, and identities in their campaigns. In this context, brands need to be more transparent, develop more circular business models, reduce their water and carbon footprints, and promote fair trade practices to appeal to these young consumers. In anticipation of this shifting mindset, and changing regulation, some fashion brands are already taking steps to be ready for this. For example, Reformation has partnered with technology platform FibreTrace to launch an AI-driven blockchain SAAS platform that allows real-time verification of products through the global supply chain.

To conclude…

The market potential for Generation Alpha is immense, and fashion companies should engage with them today to establish a connection early on and foster loyalty among tomorrow’s largest population of consumers. If Generation Alpha is a large group of individuals with various needs and wants, embracing interactive and immersive digital platforms, prioritising diversity and sustainability, offering customisation and gamification will be essential to engage with the first generation to be fully born in the 21st century.