(Instagram/Tiffany
Many millennial women might remember receiving their first Tiffany & Co. bracelets.
This gift might have been bestowed unto them around the holidays or around major birthdays.
But it appears that Gen Z isn't as enamored with luxury goods as millennials were.
Proof? Tiffany & Co. announced that its comparable sales dipped -5% this past holiday season, a time marked by gifting.
It's arguable that young people could potentially be a catalyst for this shift, even if their parents are the ones with the ostensible spending power. Experts who study millennials and the mind-blogging teen generation ("Gen Z" or "iGen") say that young people don't want luxurious, splashy gifts in the first place — hence the dramatic shift.
"For Gen Z, gifting is an occasion that mirrors the more conservative behavior of Gen Z: they are practical, frugal, and prefer to blend in, not standing out with glitzy items," Nancy Nessel, Generation Z expert, wrote in an email to Business Insider. "Gen Z is very practical — financially and behaviorally — about how they attain, earn, save and spend their money, and this practical mentality applies to gifts. Gen Z is more likely to save their money, saving money gifts and earnings to put towards their savings for a car, or for college tuition."
"Gen Z, especially the 98%, is so practical that they are fine with receiving knock offs of luxury items, such as fake Rolexes bought on the streets of NYC. Gifts are exchanged such as Avalanche, the Target line of Patagonia or other minimalist lines."
But what about teens who are privy to a more comfortable financial situation?
"While the more affluent Gen Z might request luxury item gifts, most of Gen Z wants a very different kind of luxury item today. If Gen Z wants a luxury item, it's going to be more practical than jewelry from Tiffany or an old traditional brand. They want items like a Patagonia vest (to wear year round), Vera Bradley set of luggage (they can use for many years ahead), Vineyard Vines clothing (a practical luxury item), or new top of the line sports gear (something they need in a more upscale presentation). Gen Z will do the research and legwork to be financially practical when it comes to gifts - affordable or expensive items."
(iStock)
Jason Dorsey, teen and millennial expert, told Business Insider that young people would prefer to spend their money on experiences or technology. Better yet — they want the sweet combination of both.
"Our interviews with teens, we call them iGen, as well as millennials shows that they prefer to spend money on experiences rather than stuff. They specifically want experiences they can broadcast on social media. We see this more important than ever as our new study showed that 42% of iGen say social media has a direct impact on their happiness—which is more than 10% points higher than millennials," Dorsey wrote in a note to Business Insider.