Your Gen Z Strategy Might Be Missing the Vibe Shift
Holiday shopping forecasts tell a confusing story: Gen Z plans to spend less overall but still intends to treat themselves. PwC reports a 23 percent cut in planned holiday budgets alongside a rise in micro-luxury purchases — the $7 coffee, the limited-edition drop, the skincare upgrade. Between January and April 2025, Gen Z spending fell 13 percent, yet the same study found spikes in smaller, emotionally charged buys that deliver a sense of care, creativity, or belonging.
Gen Z is cutting back on what feels routine to make room for what feels rewarding. McKinsey’s consumer-sentiment data shows that three-quarters of Americans have traded down in at least one category, but younger shoppers remain more willing than any other group to splurge when something feels “worth it.”
If your brand still sees Gen Z as either thrifty or indulgent, you’re missing the behavior that’s really shaping their carts. They’ll skip what feels transactional to fund what feels expressive. They’ll trade down on staples and trade up on symbols. The middle ground, where affordability meets meaning, is where relevance now lives.
For older generations, “trading down” often signals caution or constraint. For Gen Z, it’s an act of design. They’re curating value with intent, deciding which categories deserve emotion and which don’t. PwC’s data shows only one in five Gen Z consumers regularly pays full price, yet half say they’ll pay a premium when a brand aligns with their identity or values.
Here Are 3 Things Marketers Can Do Now:
Think about your product tiers in terms of how they make people feel, not just what they cost. Is there a small, sensory upgrade that feels like a treat? A premium option that signals sustainability or individuality instead of excess? Those are the details that justify spend.
Revisit your messaging. Campaigns that shout affordability risk sounding cheap; those that lead with aspiration can feel out of touch. Gen Z wants language that captures self-control and self-expression: the pride of getting something that feels fancy without breaking the bank.
Ask the right questions. The answers will show where your brand fits into Gen Z’s value calculation and how you can help them navigate it. For example:
“What’s the last small thing you bought simply because it made you feel good?”
“Where did you consciously decide not to spend, and why?”
This holiday season will test how well brands understand what Gen Z really values. The opportunity lies between price and prestige — in designing products, experiences, and stories that help this generation feel both smart and special. They’re redefining what “worth it” looks like, one small indulgence at a time.
