Gen Z in Indonesia and Luxury Fashion: Who Drives Their Consumption?

Santi Rimadias; Lediana Sufina

doi:10.55927/ijbae.v4i3.139

Authors

Santi Rimadias STIE Indonesia Banking School
Lediana Sufina STIE Indonesia Banking School

DOI:

https://doi.org/10.55927/ijbae.v4i3.139

Keywords:

Gen Z, Luxury Fashion, Consumption Behavior

Abstract

Luxury fashion consumption among Generation Z in Indonesia is influenced by various social factors, one of which is through social media interactions. This study aims to identify the main parties that drive Gen Z's luxury fashion consumption behavior, focusing on social media activities. Data were collected through an online questionnaire distributed to Gen Z respondents who are employed, earn above the Regional Minimum Wage, and have purchased luxury fashion items. Data collection took place over three months, namely May–July 2024, resulting in 99 valid responses, which were analyzed using Partial Least Squares - Structural Equation Modeling (PLS-SEM 4.0). The study findings revealed that friends and peers have the strongest influence on Gen Z's luxury fashion consumption, followed by advertisers and opinion leaders. Celebrities were not found to have any influence on their purchasing behavior. These insights contribute to a deeper understanding of social influence in luxury fashion marketing and provide strategic implications for brands targeting Gen Z consumers in Indonesia.

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