Future of Luxury Retail: Gen Z, Culture, and the Next 10 Years
Role: Service Designer & Strategist
Timeline: Winter 2024
Partnered with SCADpro and a luxury brand context (Ferragamo / Aime Leon Dore) to explore how luxury retail must adapt over the next decade from a Gen Z perspective, focusing on belonging, cultural capital, and new forms of luxury. The project used 10 weeks of research to reframe luxury from “extravagant comfort” to multi‑sensory, emotionally resonant experiences rooted in belonging and cultural connection.
Challenge & strategic opportunity
Challenge:
Industry fear: “50% of luxury brands will disappear in 10 years.”
Traditional definition of luxury (“state of great comfort and extravagant living”) no longer resonates with Gen Z.
Opportunity:
Reframe luxury around belonging, cultural capital, and transcendent experiences.
Help legacy brands adapt before they “adapt or die,” using Gen Z values as a lens.
How Might We's
How might we help luxury brands evolve from ego‑driven exclusivity to inclusive, emotionally rich belonging?
How might we translate Gen Z’s values into concrete retail experiences and business decisions?
Methods
Secondary research (industry articles, Statista market data, literature reviews, expert talks).
Primary research (Gen Z surveys, interviews, in‑store observations, scenario planning, workshop discussions).
Time frame: 8 weeks of research and analysis.
Key data points:
Luxury market growth from 84 billion (1997) to 368 billion (2024), projecting 419 billion by 2028.
Gen Z’s economic power projected to reach 33 trillion and surpass Millennials by early 2030s.
Demographic and cultural shaping events: 9/11, recession, COVID, BLM, Conflict in Middle East, climate anxiety, digital saturation.
Core insights:
Gen Z looks “beyond the product” to values, ethics, and behavior.
They feel excluded in traditional luxury spaces (guard gaze, not feeling welcome).
Luxury as your team defines it: multi‑sensory, dreamlike, emotionally resonant; a source of connection and solace, not just status.
Together, these 12 Values form a roadmap for how luxury brands can evolve their retail experiences over 3, 6, and 9 years.”
12 Values:
Distinctive & consistent brand identity
Captivating storytelling
Cross‑generational respect
Inclusive luxury
Authenticity in craftsmanship
Sustainable practices
Collaborative innovation
Opportunity‑driven approach
Empowered talent
Emotional appeal
Strategic risk‑taking
Exclusivity through artistic expression
Concept & service blueprint (Culture Room / Culture Club)
Core concept:
Culture Room (near‑term) and Culture Club (long‑term) as physical + digital spaces where luxury brands become cultural homes, not just stores.
Designed to embody the 12 Values in real experiences: storytelling, cross‑generational events, local culture, immersive environments, and communities.
Elements to highlight:
Multi‑sensory environments (scent, sound, materials).
Programming: masterclasses, artist talks, wellness, collaborations.
Localized design tied to architecture and heritage.
Blueprint/journey:
Before → During → After flow for a Gen Z visitor (anticipation, immersion, elevation).
Emotional goals: “I feel anticipation, I feel immersed, I feel elevated.”
Scenario planning, risk & resilience
Environmental (Paris Accord pulled forward, manufacturing disruption, border friction).
Scandals (ethics, data, greenwashing).
Technology (cyber attacks, quantum hacking, data loss).
Solutions:
Localized manufacturing, contingency budgeting, transparency, redesign, cyber investments, clear communication strategies.
Culture Room / Club as both a brand lab and sensing mechanism for future shifts.
Renee Morales
Service Designer & Strategist
