Gen Z’s Pursuit of Novelty Presents a Challenge for Brands
Key Takeaways
About 2 in 5 (39%) Gen Zers say they “usually make an effort to try new brands” in the apparel category.
Gen Z’s bias toward trying new brands is apparent across categories, posing a challenge for all brands. Keeping up with a shifting consumer landscape means not resting on laurels when it comes to customer relevance.
Forever 21’s latest bankruptcy is in part due to stiff price competition enabled by tariff exemptions for foreign e-commerce companies, but a lackluster store experience and difficulty keeping up with trend cycles also diminished the brand’s relevance among young consumers.
Data Downloads
Pro+ subscribers are able to download the datasets that underpin Morning Consult Pro's reports and analysis. Contact us to get access.
Sign up to get the latest global brand, media and marketing news and analysis delivered to your inbox every morning.
Forever 21’s second bankruptcy and U.S. store liquidation is the latest entry in a long line of brand deaths caused by upstart competitors who can offer a cheaper, faster or shinier version of the same thing. Forever 21 blames Shein and Temu (and their de minimis exemption advantage) for creating an environment where they just cannot compete. This is, of course, true, but also ignores the realities of a declining store experience compounded by their difficulty keeping up with rapid trend cycles.
Much like the taxi industry versus Uber, championing regulatory changes that offer a competitive advantage is one part of the puzzle. Even if laws did support legacy players, putting off opportunities to improve the user experience leaves brands vulnerable to anyone with an idea of how to do it better. Gen Zers are always looking for the next best thing, even more so than previous generations, so brands can’t afford to let their customer experience become stale.
Gen Z’s bias to novelty presents a challenge for brand loyalty
Maintaining relevance with consumers for decades is a challenge for all brands, and in particular for those aligned with trend-driven youth culture. Gen Zers have a notable preference for novel brands. They’re consistently more likely to say that they make an effort to try new brands across categories, as opposed to buying products from the same brands over and over.
Gen Z seeks out novel brands more than most shoppers
This propensity for novelty left the door open for a new competitor to take on fast-fashion leader Forever 21. Enter Shein, a Chinese fast fashion giant able to deliver very low cost clothing, fast. That value proposition has helped the brand explode in popularity among American Gen Zers, and allow the company to capture their significant apparel spending. Meanwhile, Forever 21’s lackluster store experience of late failed to draw in customers who still overall enjoy shopping in person. Even a 2023 partnership between the brands couldn’t turn the tide for Forever 21.
Social media helped drive Shein’s appeal as a cheaper, faster Forever 21
One area that should have helped set Forever 21 apart from Shein were their stores. In the early 2000s, they were a destination for youthful shoppers in search of cheap going out clothes to be captured via digital camera and posted to Facebook albums. More than half (55%) of Gen Zers prefer to shop for apparel in stores (36% prefer online), so the in-person experience can still be a differentiator for young consumers.
Shein was built for the TikTok era, with an ability to shorten manufacturing cycles to stay on top of rapidly changing trend cycles. At present, the brands have nearly identical awareness among Gen Zers, but Shein wins on usage and purchasing consideration.
Shein usurped Forever 21’s position as a go-to inexpensive apparel option for young people
Notably, Forever 21 has stronger net favorability than Shein among Gen Zers, and near equal net trust, indicating that young adults still like the brick-and-mortar brand well enough. Shein has more negative sentiment on some metrics, likely due to ethical criticism about the brand’s practices, but that isn’t sufficient to deter most customers from their low prices and trend cycles.
Forever 21 fares somewhat better with millennials, those who spent more time in their stores in their youthful heyday, but hasn’t been able to recapture momentum and attention the way Abercrombie & Fitch has.
A strong consumer insights function helps brands stay on top of cultural shifts
Forever 21’s second bankruptcy is an important case study for all brands seeking to stay relevant with youth culture. The challenges faced by the company are not exclusive to apparel, or even retail in general. Gen Zers’ loyalty takes shape differently than older generations. Morning Consult’s research into travel and restaurant loyalty programs shows muted engagement and prioritization of a different reward mix. Failure to keep these programs, and the overall customer experience, relevant for a shifting target audience means risking being the next domino to fall.
