Generation Z now represents a quarter of the Asia-Pacific consumer market, prompting strategic adaptation across the retail sector. WGSN’s ‘Asia Pacific Gen Z Priorities 25/26’ report provides a detailed analysis of key market trends and recommended engagement strategies for this economically significant generation. Asia’s new mainstream: A shift in cultural dominance According to the trend forecasting company, Gen Z in 2025 displays greater self-assurance and independence. Their
Their purchasing habits now gravitate towards region-specific interests, specialised hobbies and experiential activities.
“Gen Z in Asia Pacific will start organising their lives around their niche hobbies and interests,
from the niche sports boom and cult of cute to gaming and music,” the report said.
This shift signals a move away from traditional Western cultural dominance, with regional tastemakers setting new standards for mainstream consumption. South Korea’s Hallyu (K-wave) remains a strong influence, but younger consumers are equally eager to embrace Thai pop, C-pop, Bollywood and other intra-Asian cultural products. The mainstream is now being shaped by local stories, regionally relevant experiences and hyper-personalised engagements.
WGSN unveiled two key strategies for retailers:
Experiential retail: Making a compelling case for going out
Unexpected collaborations and locations: Brands should host pop-ups in unconventional spaces such as street-food markets, cultural enclaves and lesser-known hotspots, ensuring their activities feel fresh and unique.
Beyond-retail experiences: Physical stores must transform into interactive spaces for learning, entertainment and community-building.
Travelling retail formats: Capitalising on Gen Z’s love for local travel, brands can experiment with mobile retail concepts across hyperlocal destinations in China, Japan, South Korea and Southeast Asian cities like Jakarta, Kuala Lumpur, Hanoi and Bangkok.
The value-driven consumer: Rethinking brand propositions
According to the report, as Gen Z consumers become increasingly selective, mass-market brands must rethink their value propositions to remain competitive. In Asia Pacific’s developed markets, where value-conscious shopping is on the rise, brands need to strike a balance between quality and pricing by maintaining high production standards while optimising costs.
However, differentiation cannot rely on price alone, compelling brand narratives, strategic partnerships and a refined identity are essential to standing out. Additionally, enhancing loyalty and ownership models through optimised rewards programs, subscription offerings and fractional ownership opportunities can make spending feel like a more meaningful and strategic choice.
Slow luxury: Redefining status and wealth
For Gen Z, luxury is no longer about flaunting wealth through material possessions. Instead, it revolves around cultural fluency, exclusive experiences and the freedom to embrace a slower, more intentional lifestyle. Traditional status symbols like Rolex watches and Chanel bags are losing their aspirational edge in certain circles, giving way to experiences that feel personal, rare and deeply meaningful.
For affluent Gen Z consumers, luxury is about:
Cultural capital: Attending exclusive fitness classes, choosing unique boutique hotels, or experiencing destinations before they become mainstream.
Luxury travel and hospitality: Chinese female travellers, in particular, are showing a strong preference for investing in travel and unique experiences over luxury goods.
Embracing the slow-life aesthetic
A slower, more intentional lifestyle is reshaping luxury experiences, and brands can leverage this trend in several ways. By implementing convenience-driven solutions, they can streamline consumers’ lives through intuitive digital experiences and thoughtfully curated products. Additionally, brands are embracing soft-selling approaches and offline escapism by partnering with slow-life creators, celebrating print media like zines and art books and fostering meaningful face-to-face connections.
Aligning with new luxury codes
According to WGSN, to cater to Gen Z’s evolving perception of luxury, brands should focus on creating meaningful experiences. This includes designing cultural calendars that incorporate immersive luxury experiences centered around slowness, mindfulness and education. Brands can also offer exclusive travel and wellness experiences, such as luxury train journeys, private yacht trips and holistic wellness retreats that incorporate traditional Asian healing practices. Additionally, exploring spiritual tourism partnerships that integrate spirituality, mindfulness and cultural depth can help brands connect with this value-driven generation.
Further reading: Decoding Chinese consumer spending behaviour in 2025.