Picture a boardroom. There is a slide that’s called “Decoding Gen Z.” There’s a 23-year-old consultant whose job it is to explain what “aura” means, and he’s being paid an incredibly lecherously high day rate to do so. This campaign has a lowercased tagline and a creator dancing. For years brands have been observing us like a rare species of frog.
But still, in 2027 we’re in the throes of a new brand battle with Gen Z to get them to spend – which is keeping marketing directors awake at night. We’ve done all the research, all the consulting, and we’re still closing the tab at check out. Then what’s the problem? Take a bite, as I feel this is very satisfying.
The Receipts: Who Is Actually Losing Us
First, context. PwC looked at almost a million transactions and discovered that Gen Z reduced its spending by 13% in early 2025, primarily on clothing, accessories and electronics. This is the same generation that will be projected to have $12 trillion in spending power by 2030. The money exists. But it’s not going where brands expected it to go.
Lululemon’s Legging Problem
Lululemon is the big cautionary tale of 2026. The Americas’ comparable sales fell 12%, leggings sales reportedly shrank by around 20% and the company now anticipates a revenue decline for the full year. Piper Sandler saw it coming when teen survey data revealed a decrease in the number of teen girls calling Lululemon their favorite fashion trend, from 41% to 27% in one year.
Converse, Nike and the Luxury Wobble
The unofficial shoe of every teenager with a playlist, Converse has seen revenue drop by 31% for Nike in 2026 fiscal year. In the last quarter of the same year, Nike’s own digital sales fell by 12%. And luxury? As reported by the Wall Street Journal, luxury sales to Gen Z dropped by 7% in 2024, which amounts to about $5.7 billion. Not everything is our responsibility, but we’re definitely in the picture,
Why the Old Marketing Playbook Is Dead
Brands are losing customers to Gen Z because they continue to push their products at a generation with a ‘skip’ button.
Ad Blindness Is Our Superpower
We’ve been exiled from our children since we were able to hold an iPad. According to Attest, Gen Z watches fewer ads than any other generation, with approximately one-third of us actively deterred by AI-created ads. This “hello, fellow kids” campaign can be smelt from 3 scrolls away.
Sponsored Content Has a Trust Problem
Nearly three quarters of Gen Z say TikTok content now seems performative, and 41% wish it was less branded in the past, according to a Harris Poll this year. Translation: I guess the feed became a shopping channel, and we noticed.
The Attention Economy Is Brutal
This number is one that would make anyone with a marketing budget shudder. According to a study from Yahoo and OMD, Gen Z gives up their attention to an ad after 1.3 seconds. It’s no more than a flash.
And our attention is not only short, it’s scattered. The group chat is buzzing, a show is playing on TV and a podcast to listen to later. Only about 12% of us focus on the TV 100%.Only about 1 in 8 of us watch TV 100% attentively. It used to be that there was one place where everyone would be, and brands were able to speak to everyone in a single room. But no more.The days of one place to reach everyone are gone and brands now end up talking to a dozen rooms at once.
Deinfluencing Made Us Immune
Recall the time when deinfluencing was merely a trendy TikTok thing? It became a characteristic of the personality. With the rise of “don’t buy this” blogs, this is the blog that I listen to the most.
It was a feature only of one generation. Millennials got hauls. We were told “save your money, it bobbles after two washes. Remembering to ask “do I actually need this?” is difficult to forget.
The Values Mismatch
We hope that brands stand for what they represent when it comes to sustainability, diversity and social issues. Research indicates that approximately 62% of Gen Z are likely to buy sustainable brands, while 58% are skeptical of claims made to be sustainable without any evidence. If not in receipt, then not.
Target is the example you can’t miss. It reversed its diversity policy in early 2025, and was then boycotted and was suffering from a downward trend in foot traffic and sales. Although you may be a Democrat or Republican, the message is clear: to make it look like you never had any values at all, you must flip-flop with them.
The Impossible Brief
Now, for the shoelace part. We are looking for quality, ethics and good design and we are cash poor. Rent is rude. Groceries are ruder. PwC discovered Gen Z would reduce holiday spending by 23% in 2025.
Brands receive a brief that reads: Make it sustainable, Make it last, pay workers fairly and make it less expensive than a takeaway. I do have some sympathy. This is one of the main reasons that brands are struggling to retain Gen Z spend. In the absence of cash, there is a “nice to have,” and then there’s an “actually worth it” and “nice to have” will always lose.
Secondhand and Dupes Are Eating Their Lunch
The twist in the tale: We are not deterred from shopping, we are just looked elsewhere when shopping. According to ThredUp’s 2026 Resale Report, 58% of Gen Z now makes secondhand clothing their first option as opposed to new clothes, while 62% purchased secondhand clothes last year. Better yet, 67% take the resale value of an item into account prior to purchasing.
There are also dupes. 41% of Gen Z would be happy to use a private-label brand that is not as expensive. When the budget version performs the same function as the one that costs 5 times more, the loyalty goes out of the chatt.
So What Actually Works?
Community Over Campaigns
Look at Corteiz. This is not a normal advertising campaign, this is private Instagram, password protected drops and it started in a bedroom in west London. It doesn’t run away from us. It allows it to be discovered and makes people feel like they are part of the group and not an object of attack.
Real Creators and Products That Deliver
A creator trust study by Modash revealed that visibility of sponsorships leads to higher trust, while a lack of fit causes it to decrease in 2026. So: honest relationships with users of the thing. Brands such as On and Ugg, however, have been courting younger customers in more traditional ways, with items that people are willing to wear.
The itismandystyle Take
Let me be honest: here’s the last reason why brands are faltering at retaining spending from Gen Z. We don’t need any more convincing. There is a need for improved information.
This is what I’m going to attempt to do here. I’d prefer to tell you which jeans last 50 washes, what’s a bad viral buy and how to create a wardrobe that you adore on a budget that makes sense. When people share honest fashion content that will make you smarter about how to spend your money, it’s worth more than any campaign—it’s on your side.
Brands, if you’re reading: don’t study us, respect us. Do good, do fair, do true. That’s a wild idea I know,
