What Brands Need to Know About Gen Alpha

Glenn Taylor
·7 min read

Anytime a new cohort of consumers enters the fold, fashion brands know they must stay ahead of the curve. After years of brands tweaking their messages, designs, and values to cater to millennials and Gen Z consumers, the cycle once again puts the spotlight on the newest kids in town: Generation Alpha.

Depending on who you ask, “Gen Alpha” roughly spans children born in the 15 years starting from 2010 onward. This demographic is the textbook definition of “digital natives,” with social media and mobile devices omnipresent throughout their everyday lives, further enhancing their need for convenience and personalization.

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But they also live in a more socially conscious world that is becoming more focused on inclusivity and sustainability—which the fashion industry has already started to address in recent years.

The demographic is growing rapidly, and as such is a massive growth opportunity for brands that understand this generation. Sociologist Mark McCrindle, who is credited with coining the term, says that an estimated 2.5 million Alphas are born into the world every week and are expected to number 2 billion by 2025.

The children’s wear market is already massive, reaching $260.6 billion in 2021, according to Imarc Group. This number is expected to grow to $352.4 billion by 2027. According to Imarc, the key factors driving the growth will be high-quality premium apparel as shoppers ensure the optimum comfort and safety for their children. The report also points to emerging trends including children’s styles that match their parents, or in some cases, mini versions of dresses that emulate those worn by celebrities.

Meta Meets Alpha

Regardless of the trend, how exactly is Gen Alpha going to make an impact on fashion retail, especially if they are years away from having any purchasing power? Even though they don’t have direct buying power, they certainly have an influence on cultural norms.

Although older generations may still exhale a sigh at the concept, the popularity of digital platforms like Roblox and games such Minecraft and Fortnite have led many a retailer to throw their hat in the metaverse.

This pool of retailers and consumers getting into virtualized worlds is only expected to grow, as everyone from Walmart to Nike to Tommy Hilfiger to Vans now has a Roblox presence. The platform presents major growth potential for the fashion industry in a different way, with the company saying that 67 percent of users are under the age of 16 as of 2021.

Morgan Stanley is bullish on the idea of digital fashion gaining prominence and influencing fashion trends, saying it could reach approximately $50 billion by 2030. These virtual clothes could have plenty of runway, especially as Gen Alpha consumers age along with the current platforms they use.

Forever 21, for example, is taking advantage of ways that could benefit both the digital and physical realms. Users and creators can create their own storefronts on Roblox where they can buy and sell physical and virtual merchandise and participate in monthly drops.

While the fast-fashion retailer sold 1 million units of its virtual Forever Beanie, further illustrating the platform’s ability to generate positive fashion buzz, it also now has a potential funnel for more ideas for real-world apparel.

“Then the question for us is, ‘Should there be a real Forever Beanie? And how do we collaborate further with creators on these great ideas?” said CEO Winnie Park at the Retail Influencer CEO Forum in September.

Taking Action

Gen Alpha also has an altruistic side. According to Wunderman Thompson Commerce, Gen Alpha is seeking to make a difference in the world, and their favorite brands reflect that. Of the 4,000 children aged six to 16 it interviewed, two-thirds (66 percent) said they want to buy from brands that have a positive impact on the world.

“Of all the issues that could inform the values of today’s children, environment and sustainability loom the largest,” said Hugh Fletcher, global marketing director, Wunderman Thompson Commerce. “The generation of Greta Thunberg and school climate strikes is already telling their sometimes-bemused elders loudly and clearly—the environment matters to us, and we demand action to safeguard its future.”

Education about climate change in elementary schools has certainly raised awareness, putting retailers in a role where they need to look ahead when it comes to sourcing eco-friendly materials and implementing more sustainable production practices such as regenerative agriculture. According to McCrindle, 81 percent of parents say their Generation Alpha children have influenced their actions or consumption decisions, making them more environmentally aware.

“The most important message is much deeper than trumpeting your green credentials to appeal to kids,” Fletcher said. “It means that Alphas want to be engaged with on issues that matter to them. Sustainability is certainly part and parcel of that, but the bigger picture is that Alphas are unlikely to view the things they buy as simple commodities and the places they buy from as commercial production lines. The indications are that they will want to know the stories behind what they buy and engage on a deeper level.”

No Boundaries

If Gen Alpha’s elders are any indication, the future of fashion may be gender-neutral.

In October 2021, California became the first U.S. state to require retailers with more than 500 in-state employees to maintain a gender-neutral section for childcare items and toys. Set to go into effect in 2024, this law does not cover children’s clothing. But it does illustrate the mindset shift that is occurring and its impact on commerce trends and what consumers are demanding.

California’s own PacSun launched a gender-neutral children’s clothing brand, PacSun Kids, that same year. The kids’ collection ranges in sizes from 4 to 14 and carries everything from graphic tees to fleece sweats to outerwear to swimwear. Last November, the lifestyle apparel retailer launched its first gender-free kids’ clothing store in further illustration of its commitment.

“The kids’ market is saturated in brands that cater and market specifically to either boys or girls, but very few brands explicitly design, dress, and market with an emphasis towards ‘gender free’ dressing and a ‘fully inclusive mindset,’” said Brieane Olson, president of PacSun, in a statement upon the launch. “This is at the heart of why we chose to start PacSun Kids now. We want children to have the freedom to express themselves as individuals, dress how they feel most empowered, and be their true unique [selves].”

In Canada, outdoor lifestyle brand Roots has sought to cover ground across genders and sizes with its One Collection, which crowdsourced consumer preferences and based the line on the try-on experiences of 50 consumers, all of whom varied in size and gender.

“When we think about the omnichannel concept of wherever, however, whenever you want to shop, that should also apply to the products that you want to shop for,” said Meghan Roach, CEO and president of Roots. “In our research, we found that we had a lot of female customers shopping in the men’s section. We also had a lot of nonbinary and transgender customers who were shopping with us.”

Inclusivity in general is becoming more of a need within the kids’ apparel space, with consumer insights platform Getwizer reporting that only 50 percent of parents would label their kids’ size as “regular.” The other half of parents define their children as either tall (24 percent), short/petite (13 percent) or plus-size (11 percent).

“Children are facing a lot of different things when they go to school. How do I make friends? How do I deal with social media?” Roach said. “We want them to feel comfortable in their own skin and comfortable in the clothing we’re offering them.”