According to the latest estimates, the luxury footwear market is expected to grow from its current value of $36.8 billion to nearly $68 billion by 2033. In this scenario, Italy stands out as the undisputed global leader, thanks to the recognized value of Made in Italy, a symbol of excellence, quality and prestige worldwide.
However, over 50% of the market share is held by minor or niche brands, which differ from the established leaders in the industry. These players intensify competition and contribute to the sector’s high fragmentation. This dynamic provides new entrants with significant opportunities to carve out their own space by developing targeted positioning strategies.
How can a new brand, then, emerge in such a context? Which positioning and segmentation strategies are most effective in capturing the demanding Italian Generation Z? A comprehensive study sought to answer these crucial questions by exploring the drivers influencing younger consumers’ choices and identifying market opportunities for distinctive positioning. Generation Z, selected as the study’s primary target, represents the most promising future clientele for luxury products due to its growing purchasing power and strong global influence on key sectors of the fashion industry.
Review of existing literature
Analyzing the dynamics that influence the purchasing decisions of this consumer segment, two pivotal studies have emerged as foundational to formulating the research hypotheses.
The first one, conducted at the Bandung Institute of Technology in Indonesia, identified five key factors that positively impact Generation Z’s decision-making when purchasing luxury footwear:
The influence of social media creators.
The brands’ focus on sustainability.
Collaborations with other brands, designers or artists.
The hedonistic value, that is the pleasure derived from purchasing a luxury product.
The perceived quality.
The second study, a report published by the First Insight platform, further highlighted that 60% of these young consumers prefer to buy from eco-friendly brands, and 75% are even willing to pay a premium price for products made with sustainable materials.
By adapting these findings to the Italian context and applying them specifically to the luxury footwear sector, the research formulated hypotheses that guided the investigation. Specifically, the study aimed to verify whether the five drivers identified by the Indonesian study are equally relevant for the Italian Generation Z. Additionally, it hypothesized that sustainability could justify a premium price in Italy and that distinct subgroups exist within Generation Z, each characterized by specific preferences tied to these drivers.
Research methodology
The research adopted an integrated methodological approach, combining qualitative and quantitative phases to ensure a comprehensive analysis of the consumption dynamics of this generational group.
In the first phase, face-to-face interviews were conducted, each lasting approximately 30 minutes, involving six young people belonging to the chosen target group and an expert in the sector, a sales manager of a footwear company. The goal was to deeply explore the consumers’ purchasing behavior and preferences.
These interviews provided valuable qualitative insights, which were then used to develop an online questionnaire, distributed primarily via Instagram. The survey collected 328 responses, 200 of which were deemed valid. The data collected were then processed using advanced statistical analysis techniques, including univariate, bivariate and multivariate analysis, to address the research questions and test the formulated hypotheses.
In order to identify the main drivers influencing the purchasing decisions of Italian Generation Z consumers, participants were asked to evaluate 16 distinct attributes on a scale from 1 to 9, including the five key factors identified in the Indonesian study. Initial results from univariate analysis showed that design and aesthetics, comfort and perceived quality are the most relevant factors for this cohort.
In order to deepen the analysis, the original 16 attributes were processed using a factor analysis, which synthesized them into six key macro-factors.
These factors were then used as input for a cluster analysis, which made it possible to segment the market into four groups – internally homogenous but distinct from each other – described as follows:
The Sophisticates, lovers of exclusive and refined luxury; they value uniqueness combined with aesthetic and emotional pleasure.
The Trend Followers, the largest cluster, as can be seen from the pie chart, attracted by brand popularity, fashion trends and exclusive collaborations.
The Luxury Collectors, representing 32% of the sample, who seek a balance between prestige, sustainability, craftsmanship and comfort.
The Customizers, fascinated by the ability to personalize products, they are strongly influenced by content shared on social media.
This segmentation provides a deep understanding of consumer priorities, uncovering the diverse motivations behind their purchasing decisions. The findings not only highlight the preferences of Generation Z, but also serve as a strategic guide for new brands aiming to establish a distinctive position within the highly competitive luxury footwear market.
To further analyze the preferences of the Italian Generation Z, respondents were provided with eight luxury shoe brand profiles, which were to be rated on a scale from 1 to 9 according to their propensity to purchase. This phase of the research, conducted through a conjoint analysis, allowed real purchase situations to be simulated, offering an in-depth view of consumer priorities.
The results obtained demonstrated that price is the most influential attribute, carrying a weight of 41%. Consumers showed a clear preference for more affordable options, as evidenced by the progressive decrease in perceived utility as price increased. However, sustainability also emerged as a salient factor, with consumers favoring brands that demonstrate a genuine commitment to sustainable practices.
In order to provide a more comprehensive exploration of the role of sustainability, a comparison was made between the results of the conjoint analysis and a direct question included in the survey. In the quantitative phase, participants were asked to explicitly indicate the percentage of premium they would be willing to pay for a luxury shoe made of sustainable materials. The analysis of the data revealed a significant discrepancy between the two approaches: while respondents declared a willingness to pay an average premium of 8.15%, the conjoint analysis of implicit preferences revealed an actual premium of only 0.21% attributed to sustainability. This divergence between ideal statements and actual choices highlights that, although consumers recognize the value of sustainability, they tend to assign it less importance in practical decision-making contexts, where price remains the dominant driver.
Finally, an analysis of correspondences was conducted to examine the positioning of major brands in the luxury footwear market. This analysis led to the creation of a positioning map, which revealed that the attributes “trendy” and “sustainability” currently lack explicit association with any brand. This finding uncovers competitive spaces in the market that remain untapped, presenting significant opportunities for differentiation.
The analysis thus reveals two highly promising positioning opportunities for a new brand that wants to differentiate itself from its competitors.
The first one combines exclusivity and sustainability, an ideal match for attracting consumers oriented toward responsible luxury – a segment of growing relevance in today’s market.
The second opportunity merges modern design and ethical values, a perfect fit for capturing young consumers who prioritize trends and environmental responsibility.
Conclusions and managerial implications
The research successfully verified the formulated hypotheses and addressed the initial research questions, yielding results with significant managerial and academic implications.
The first hypothesis was found to be partially confirmed, as only two of the five drivers identified in the Indonesian study – perceived quality and hedonistic value – proved to be relevant for the Italian Generation Z consumers, too. The second hypothesis, concerning consumers’ willingness to pay a premium for sustainable products, was validated with limitations, highlighting a discrepancy between stated intentions and actual purchasing behavior. Finally, the third hypothesis was fully confirmed, demonstrating the existence of distinct subgroups within Generation Z, such as Luxury collectors and Trend followers, which emerged as strategic targets for tailored marketing initiatives.
These findings underscore that the success of a new brand hinges on its ability to balance sustainability, innovation and a competitive price, while addressing the specific needs of the most promising Generation Z segments.
From a purely managerial perspective, these results suggest that emerging brands should embrace sustainability as a core element of their positioning, supported by transparent communication and balanced pricing strategies. They should also develop customized campaigns and offers that are tailored to the preferences of the identified segments.
From an academic standpoint, this study offers an innovative contribution by applying quantitative methodologies to the luxury footwear sector – a niche still underexplored in existing literature. This approach has illuminated key factors in purchase decisions, shedding light on dynamics that previous research had overlooked, and providing a solid foundation for future studies and strategies.
Research limitations and future developments
The study, however, presents some significant limitations, notably the limited representativeness of the sample analyzed and its exclusive focus on the national context.
Regarding the sample, there is an overrepresentation of women compared to the actual composition of Italian Generation Z, where males slightly predominate (52%). Similarly, the age distribution does not fully reflect reality, with participants born around the year 2000 being significantly more numerous than the average, while younger participants, born between 2003 and 2006, are present to a lesser extent. This discrepancy is likely linked to the method of questionnaire distribution, which relied on Instagram and the researcher’s personal network.
In addition, the exclusive focus on the Italian context limits the ability to capture the international dynamics of a sector with a strong global footprint, such as fashion, where cultural differences play a crucial role in shaping consumer choices.
While these aspects represent limitations, they also lay the groundwork for further research. Future studies should focus on expanding the sample to ensure a more balanced distribution in terms of gender and age, as well as extending the investigation to an international scale. These improvements would enable the generation of more accurate results, providing valuable insights for designing effective marketing strategies that are applicable on a global scale.
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