The New State of Apparel Shopping: What Gen Z and Millennials Mean for Brands.

Apparel shopping is more than a reflection of fashion preferences. It is a window into how consumers make decisions, allocate budgets, and express cultural identity. Insights from a Morning Consult Report show how shopping habits are being reshaped by inflationary pressure and how generational dynamics, particularly among Gen Z and Millennials, are rewriting the rules of loyalty and retail engagement.

For apparel brands themselves, these findings carry weight. Clothing is a high-frequency, highly emotional category, and the way people shop for it today reveals what they expect in the fashion marketplace tomorrow.

Why Value Perceptions Are Being Redefined

The report highlights that price sensitivity remains one of the most powerful forces in apparel shopping. Average spending in the category fell from $90.08 in January 2024 to $84.14 in December, a decline most notable among Gen Z adults and Millennials. Even modest inflation and new tariffs shaped consumer psychology, leading many shoppers to reallocate their dollars away from apparel.

For younger consumers, this is not only about affordability but also about fairness. When fast-fashion players like Shein normalize ultra-low prices, expectations shift. Consumers begin to perceive higher-priced products as unjustified unless they deliver clear added value. This recalibration of value is influencing not just fashion, but groceries, household goods, and personal care products as well.

Brands that want to hold ground in this environment need more than intuition. Rigorous quantitative research becomes essential to uncover what consumers believe constitutes a “fair” price and to identify the thresholds where shoppers will walk away. For example, surveys that track willingness to pay across demographic segments can reveal whether Gen Z and Millennials are more willing to pay a premium for sustainability claims, or whether novelty and low price win out. By combining these insights with generational expertise, brands can adapt their pricing and messaging before consumer trust is lost.

Gen Z Loyalty Is Earned, Not Given

The study makes clear that Gen Z is the least brand-loyal generation in apparel. While 59% of U.S. adults prefer to buy from the same brands repeatedly, that figure drops to only 46% for Gen Z adults. For this group, novelty is not an exception but the norm. Their shopping journey is fueled by discovery, especially on social platforms. Around 35% of Gen Zers say TikTok is their favorite channel for following fashion influencers, compared to just 23% of Millennials.

This fragmented discovery process creates a difficult challenge for brands. Securing a first purchase is hard enough, but retaining Gen Z attention requires ongoing relevance. Their loyalty is conditional and must be constantly reinforced.

Consumer brands in other categories are already encountering the same dynamic. A beverage company might win Gen Z with an innovative flavor launch, only to lose them to a competitor weeks later. In this environment, relying on one-off campaigns is not sustainable. Instead, brands need strategies rooted in generational expertise. Understanding the unique values, media habits, and decision drivers of Gen Z allows companies to craft experiences that resonate repeatedly, not sporadically.

Data from quantitative tracking studies can help identify the triggers that drive repeat engagement versus one-time trial. Combined with generational insight, these findings enable brands to build personalized strategies that move beyond promotions and discounts, creating sustained relevance in the eyes of young consumers.

Millennials Balance Nostalgia and Disruption

While Gen Z gravitates toward novelty, millennials are fueling an unexpected revival of early 2000s mall brands. Abercrombie & Fitch, Gap, and J.Crew have modernized their practices and regained traction with the very audience that grew up with them. For Millennials, the combination of nostalgia and updated identity provides a sense of continuity while still feeling relevant.

Yet this revival exists alongside the enduring dominance of Shein. Despite controversies over labor practices and intellectual property, Shein consistently outperforms mall brands in purchase consideration among both millennials and Gen Z. Its appeal lies in speed, affordability, and novelty, offering an endless stream of fresh products at a fraction of the cost.

The tension between heritage brands and fast fashion illustrates a broader pattern. Across industries, nostalgia-driven revivals are possible, but they succeed only if they blend authentic roots with modern expectations. For example, a food brand might reintroduce a heritage recipe but must adapt the packaging and messaging to resonate with today’s Millennial parents who demand convenience and transparency.

Here again, quantitative research paired with generational expertise provides clarity. Surveys segmented by age groups can reveal whether nostalgia resonates strongly enough to drive purchasing, or whether affordability and novelty take priority. With this knowledge, brands can confidently decide whether to lean into revival strategies or compete on disruption.

The Physical Store Still Holds Power

Despite a digital-first world, the majority of apparel shoppers still prefer physical stores. Nearly two-thirds of respondents across generations said they would rather buy clothing in person, primarily due to challenges with fit and sizing. Even advanced sizing tools have failed to convince consumers. While Gen Z and urban Millennials use same-day delivery and in-store pickup for convenience, the reliance on physical touchpoints remains strong.

This insight reinforces findings we highlighted in How U.S. Shoppers Navigate Grocery Aisles. In the article, we mention that even digitally savvy consumers depend on physical cues, packaging, and in-store experiences to finalize decisions.

For brands across categories, the message is clear: digital cannot fully replace the reassurance of in-person engagement. Trust is still built in the aisle, at the shelf, or through direct product interaction. Generational expertise allows companies to anticipate how different age groups balance online and offline habits, while quantitative research reveals the exact scenarios where physical experiences matter most. By integrating both, brands can design hybrid strategies that provide convenience without sacrificing trust.

Beyond Apparel Signals for All Consumer Brands

The apparel category highlights how consumer behavior is being reshaped by price perceptions, generational dynamics, and hybrid retail expectations. For Gen Z, loyalty is conditional and discovery is constant. For Millennials, nostalgia and disruption coexist as they navigate familiar brands and fast-fashion newcomers. Across both groups, price sensitivity defines decision-making, and in-person experiences remain indispensable.

These signals extend far beyond apparel. They foreshadow what brands in food, beverages, personal care, and household products will face in the coming years. Consumers are recalibrating what they value, balancing price with meaning, and demanding experiences that match their generational expectations.

At DataSense, we help brands make sense of these shifts. By combining quantitative research with generational expertise, we translate complex consumer data into clear, actionable strategies. From tracking how Gen Z responds to new product launches to analyzing how Millennials balance nostalgia with innovation, our work ensures that brands can adapt with confidence.

Let's talk about how DataSense can help your brand uncover the generational and behavioral drivers shaping today’s consumers.

Sources:

The State of Apparel Shopping - Morning Consult, 2025