Digital Subcultures Are the New Lever of Commerce: How Gen Z Is Shaping the Future of Brands

Generation Z is rapidly taking over as the world's leading trendsetter, and their digital subcultures are setting the pace of fashion and pop culture. What does this mean? Brands that want to survive must learn to read young consumers.

For decades, young generations have set the pace of social and cultural change. They were behind the hippie wave of the 1960s , the graffiti culture of the 1980s , and the skateboarding rebellion of the 1990s . It's no coincidence that " youth is the future of the world ." Today, however, this future is playing out primarily online , in digital subcultures that shape not only tastes but also the way brands communicate with consumers .

Generation Z, born practically "with a smartphone in hand," knows no boundaries between the real and digital worlds. This gives their voice the power to create trends on a global scale, and instantly. Brands recognize the potential and are increasingly trying not only to follow Gen Z's lead but also to commercialize their virtual world .

Person browsing social media, Instagram account. License: Nathana Reboucas / Unsplash

While millennials built their identities in clubs, concerts, and the streets, Gen Z does so on TikTok, Instagram, and Discord. Their subcultures emerge overnight and just as quickly become mainstream. Cottagecore , the Y2K aesthetic , and Castlecore —they sound exotic to older generations, but for Gen Z, they're everyday occurrences.

Importantly, these trends aren't just fashion. They're a manifestation of values: caring for the planet ( slow fashion and second-hand ), inclusivity (wide ranges of foundations, larger sizes), and concern for mental health, which Gen Z is openly discussing.

Brands are actively monitoring social media to keep up with the younger generation. For example, Asics resurrected sneakers inspired by the Y2K aesthetic, Fenty Beauty redefines inclusivity with countless foundation shades, and Louis Vuitton created its own Labubu . When former LOEWE creative director Jonathan Anderson saw a surprising comment under a photo of a juicy tomato on the X platform, he decided to capitalize on the media buzz and transform the meme into a handbag .

In addition to brands intensely observing the virtual world, they're also entering it themselves. The fastest way to announce a new drop? With an Instagram post. How to wow with a campaign? With reels, as Jacquemus has been doing for a while now, serving us "postcards" from Capri and Courchevel.

Although de-influencers reigned supreme on TikTok for a while, the statistics don't lie. Traackr data from March 2025 indicates that 63% of consumers are willing to buy something recommended by a trusted influencer. What do luxury fashion houses have to say? They're inviting influencers and celebrities beloved by Gen Z to collaborate.

Not every campaign, even those on social media, is a success. Campaigns teetering on the edge of good taste or classic greenwashing demonstrate that brands often lose their way when translating Gen Z language into advertising . The younger generation has a keen radar for falsehoods and marketing pretenses. For example, American Eagle and the Sydney Sweeney campaign demonstrated that loud hype doesn't always equal success. Meanwhile, when Balenciaga operates on the edge of "reason," Gen Z delights.

The bottom line? Gen Z doesn't need scandals, but rather honesty and brand consistency with the products it offers. This generation no longer buys just clothes or cosmetics. They buy stories and ideas they want to identify with. If brands want to survive, they must understand this. The sooner, the better.