Marketing Strategies to Sell to Gen Z in America

To be competitive in the American market, international brands must bet on e-commerce and social media

The U.S. fashion and apparel sector is undergoing significant changes, and the driving force behind this shift is the younger consumers: it proves that Gen Z is the most influential segment of consumers in the American economic system.

If American brands like Y2K and Juicy Couture have made a comeback after years of struggling to stay competitive in a saturated market, it's because they have adopted digital marketing strategies (and more). The main business strategies that brands have developed to win back U.S. consumers include:

• Collaborations with other brands;
• New product categories;
• Development of e-commerce sites;
• Extensive presence on social media.

Digital-first and brand identity loyalty: how brands in America can acquire customers

Knowing intimately the lifestyle, tastes, trends, values, and purchasing patterns of the target consumers is essential to sell in the United States

Juicy Couture decided to undergo a strategic rebranding leveraging the popularity of one of its iconic pieces, the velour tracksuit. In recent years, the brand that made tracksuits glamorous has used its nostalgic appeal as a springboard to become relevant again in the U.S. market. The company has expanded into new product categories in the fashion sector like nightwear and has developed alternative versions of the velour tracksuit, in addition to launching runway lines, outerwear, and luxury tracksuits. After all, Juicy Couture's distinguishing element has always been velour, and straying too far from the brand's identity could have been counterproductive.

In 2020, the fashion market was also swept by the phenomenon of athleisure, which, along with the Y2K trend, made Juicy Couture one of the most successful brands in America. Products from Italian brands looking to internationalize their business in the United States must, therefore, evolve to appeal to new generations of consumers and align with market trends without straying from what the brand represents.

How to reach Gen Z consumers with your brand in America?

The purchasing behavior of American consumers is influenced by what they see on social media: in the case of Gen Z, companies need to market on Instagram and TikTok

The launch of Juicy Couture's e-commerce site increased the brand's online sales in the United States. What emerged was that the latent demand from American consumers was very high: people had never expressed a need to buy from Juicy Couture, yet when the company unveiled its new online presence, the conversion rate and loyalty in America soared.

This is clear evidence that what brands do online significantly influences sales volume in the American market, especially since this space is dominated by Millennials and Gen Z, who are habitual consumers of e-commerce platforms, always looking for online shopping experiences that truly let them get to know the brand.

Younger clients are also attracted to new payment methods spreading across all U.S. e-commerce: for instance, Americans looking to purchase Juicy Couture items can use the “Buy Now, Pay Later” (BNPL) service by Klarna, which currently contributes to over 16% of the site's sales in America.

Foreign companies need social media to sell to Gen Z in the USA

Brands like Juicy Couture have greatly benefited from developing their online presence. Social media and e-commerce sites are indeed a vital component for companies targeting Gen Z consumers because they offer countless ways to engage with the target audience and communicate the brand to the vast U.S. public.

Considering that more than 67 million Gen Z individuals live in the United States today, there's no need to further explain the importance of being online for Italian companies. The digital realm can offer European brands unique opportunities to make a name for themselves in America, and now more than ever, seizing the chance to reach so many consumers is truly advantageous not only in terms of popularity but also strategically: the case of Juicy Couture relaunched during the “Y2K Nostalgia” boom is just one example among many.