Forget flex culture: Gen Z embraces ‘lo-fi’ luxury in Asia

Asia’s Gen Z priorities are changing, and brands need to be in the know. In 2025, Gen Z will make up a quarter of APAC’s consumer base, wielding more disposable income than ever. No longer just seeking self-definition, this cohort is embracing its niche passions, reshaping mainstream culture, and prioritizing slow, intentional luxury. “In Asia, a middle-class boom combined with rampant flex culture online has led to a mass democratisation of luxury, driving the rise of new luxury codes rooted in experience, leisure and cultural fluency,” says Alison Ho, Consumer Strategist at trend forecasting and market analysis firm WGSN. “Luxury brands looking to maintain cultural relevance and an air of prestige will have to pivot towards hard-to-fake slow luxury touchpoints, which are underpinned by hyper-exclusive ‘beyond money’ experiences, wellness and hospitality extensions.” In its latest report, “Asia Gen Z Priorities 25/26,” WGSN breaks down the demographic’s values, spending habits, and cultural drivers — and how brands can tap into their evolving mindset. We dissect the key insights below. Fandom as a cultural powerhouse Gen Z consumers in APAC are structuring their lives around niche interests, from gaming and anime to K-pop and local music scenes. No longer reliant on Western cultural imports, they are championing homegrown movements like Thai pop, C-pop, and Bollywood. Take China’s booming “guzi” economy and Nezha 2’s historic ascent as prime examples. Local luxury malls are now stocking guzi merchandise to tap into the country’s expanding AGC culture, which is rapidly evolving from a niche interest into a mainstream commercial force. Brands that embed themselves within these fandoms stand to win big. “To successfully tap into fandoms, brands will have to demonstrate fandom fluency and signal that they have insider knowledge about a particular fandom,” Ho says. “To do this, brands will have to embark on partnerships with entertainment companies, sports teams, anime, gaming franchises and art-toy brands and illustrators to co-create merchandise and fan experiences.” Strategies for brands: Collaborate with entertainment giants, gaming franchises, and anime creators to develop exclusive merchandise and collectibles that act as status symbols. Create experiential spaces where fans can engage with their favorite fantasy worlds — whether through immersive retail, pop-ups, or travel experiences linked to entertainment. Move beyond traditional brand marketing — adopt the mindset of an entertainment production house, offering content, storytelling, and interactive engagement. The rise of lo-fi luxury: Experiences over possessions For Gen Z, luxury is no longer defined by owning iconic pieces — it’s about curating experiences that are harder to replicate. Ho points to Miu Miu as a great example of successful localization in Asia. “For [Miu Miu’s] global ‘Women’s Tales’ film anthology, the brand commissioned tales offering nuanced perspectives on contemporary Chinese life (like Tan Chui Mui’s exploration of Chinese-Malaysian diaspora in I Am the Beauty of Your Beauty, I am the Fear of Your Fear),” says Ho. “In this aspect, it also acted as a cultural broker for the Chinese film industry by hosting roundtable discussions about female narratives in Chinese cinema and is able to weave itself into the zeitgeist respectfully and naturally.” High-end hospitality, cultural immersion, and rare, under-the-radar excursions are the new status symbols — evident in China’s growing trend of sacred temple visits among urbanites seeking spiritual experiences to enhance their prospects and well-being. Moreover, as the cohort’s spending power shifts from material goods to “it” experiences, exclusive offerings such as luxury train travel, private diving trips, and bespoke wellness retreats are gaining traction. Ho highlights China’s Aranya as a coastal cultural resort community that has thrived by embracing a modern spiritual ethos — blending culture, community, nature, and mindfulness. Strategies for brands: Offer a seamless digital experience that helps consumers make time for what matters — think curated itineraries, exclusive event access, and AI-driven concierge services. Align with slow-life creators and soft-selling formats to reinforce a sense of exclusivity without overt marketing. Integrate traditional Asian wellness concepts like Ayurveda and traditional Chinese medicine into product development and experiential offerings, catering to Gen Z’s increasing focus on holistic well-being. Regional identity over global trends APAC’s Gen Z is pushing back on Western influence, turning instead to celebrate regional identity and local creativity. Trends such as South Korea’s “hallyu” wave remain dominant, but younger consumers are also looking inward, embracing their own cultural narratives and supporting local brands. This mindset change was particularly evident in this year’s approach to Chinese New Year, where several brands, including Charlotte Tilbury and Prada, tapped into the country’s growing spiritual and mysticism craze, which includes astrology, fortune-telling, and divination, for the festive season. While the rise in spirituality is a global trend driven by growing feelings of confusion and uncertainty amid the breakdown of traditional economic, social, and political institutions, Ho notes that Asian youths stand apart. “They have a rich base of existing and home-grown Eastern spiritual philosophies that they gravitate towards,” she says. “So, while horoscopes and astrology are popular, so are metaphysical concepts such as neo-Taoism (xuanxue) in China, the Four Pillars of Destiny (bazi in Chinese and saju in Korea), or the practice of spiritual charms known as mutelu in Thailand.” Strategies for brands: Instead of imposing global aesthetics, collaborate with local artists, designers, and businesses to create region-specific campaigns and products. Unearth local myths, folk stories, and traditional craftsmanship to weave into branding, storytelling, and product design. Foster partnerships across APAC markets to amplify regional culture, from Southeast Asian streetwear to South Asian indie music. As Gen Z consumers’ priorities evolve, brands that authentically integrate into their niche passions, embrace slow luxury, and champion regional creativity will be best positioned to thrive this year and beyond.

Forget flex culture: Gen Z embraces ‘lo-fi’ luxury in Asia

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Published February 24, 2025

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Forget flex culture: Gen Z embraces ‘lo-fi’ luxury in Asia