Why Gen Z Buys Luxury Differently: Insights from Hitha Herzog | Emily Blumenthal & Hitha Herzog

What drives a generation to skip credit card debt yet confidently spend on a vintage Balenciaga or a Fendi Baguette? In this episode, Hitha Herzog, Chief Research Officer at H Squared Research, breaks down the economic and cultural forces shaping how Gen Z shops today. From the rise of resale and the circular economy to the growing popularity of buy-now-pay-later services, Hitha explains how younger consumers balance aspiration with caution. She also unpacks the concept of the K-shaped economy, revealing why two shoppers can experience the same market in completely different ways—and how that impacts luxury, fashion, and consumer behavior.

Key Takeaways:

• Gen Z defines luxury differently — Resale, vintage, and experiences often matter more than traditional status symbols.
 • Economics shape behavior — The K-shaped economy creates vastly different spending realities among consumers.
 • The experience is part of the product — Packaging, unboxing, and storytelling influence purchasing decisions as much as the item itself.

🎧 Listen now for a fascinating look at the psychology, economics, and future of luxury shopping.

Our Guest:
 Hitha Herzog is the Chief Research Officer at H Squared Research, where she analyzes consumer behavior, retail trends, and the economic forces shaping how people spend. A respected commentator on business, retail, and culture, Hitha helps brands understand the evolving relationship between consumers, technology, and purchasing decisions in a rapidly changing marketplace.

Host Emily Blumenthal is a handbag industry expert, author of Handbag Designer 101, and founder of The Handbag Awards. Known as the “Handbag Fairy Godmother,” Emily also teaches entrepreneurship at the Fashion Institute of Technology. She is dedicated to celebrating creativity, craftsmanship, and the art of building iconic handbag brands.

Find Handbag Designer 101 Merch, HBD101 Masterclass, one-on-one sessions, and opportunities to book Emily Blumenthal as a speaker at emilyblumenthal.com. 

Transcript

Branding That Grows With Fans

SPEAKER_02 0:00

It's not a new concept to get in with a younger generation and have that generation grow with your brand. I think the best example of that, and don't laugh when I say this, but Taylor Swift. Oh yeah. Taylor Swift really did a great job growing with her demographic because you have 44-year-old women who started listening to her 20 years ago. And the memories and the words and the and that brand, you know, they are diehard Swifties. They will do whatever and buy whatever. And I mean, she really that branding, you know, she nailed that branding. And I think that retailers, specifically in brands, have taken a page from that playbook.

Meet Retail Researcher Heetha Herzog

SPEAKER_01 0:50

Hi, and welcome to Handbag Designer 101, the podcast with your host, Emily Blumenthal, handbag industry expert, and the handbag parry godmother. Each week we uncover the stories behind the handbags we love, from the iconic brands and top designers, the creativity, craftsmanship, and culture that define the handbag world. Whether you're a designer, collector, or simply passionate about handbags, this is your front row deep to it all. Welcome, Miss Keith Herzog, Chief Research Officer at H Squared Research. And I say that with my inflection going up, only because you do many hundred million other things that, including a bookabag counterfeit handbags, as your friend reminded you about at the lunch. So welcome to Handbag Designer 101 the podcast. I am selfishly so happy to finally get you on. I'm happy I tracked you down for us to finally do this. What people don't know is that we have had a storied history.

SPEAKER_02 1:59

And also thank you for having me on. This is gonna be so exciting. But yes, before we got on this podcast, we were talking about all of our the days of your in the 90s. Oh my god, we had.

SPEAKER_01 2:12

But it's more like the days of lore now.

SPEAKER_02 2:14

So it is a lore. Yes. The lore of the 90s.

SPEAKER_01 2:20

Yeah, you are lore. I at this point everything rhymes. That's the way it needs to go. But Heatha, you you are a very smart person and very, very educated and very good at research. So, not to minimize, but like there's a lot of good stuff you impart other than being a Parsons professor, other than being like the go-to for everything retail research, which again, so much good nuggets are gonna come from this, even though we've said nothing. Talk to me, because you know, this is a podcast that is fluency mostly about handbags, but can we just kind of gloss over what's going on in retail, circular economy?

The K-Shaped Economy In Shopping

SPEAKER_01 3:03

You and I spoke about yesterday about Gen Z and coach. There's so much to just just dive in and I'm gonna interrupt you because I'm good at that too. So just start, just just start driving. I'm I'm with you.

SPEAKER_02 3:15

This is what I want. I want that clip of you calling me very smart. I'm gonna send that to my mom because my mom is still in disbelief that I even have a job or I know what I'm doing. So same. So thank you for saying all of that. Thank you. Shout out to my Indian mom. And um Hey, we, you know, it's interesting. You mentioned the circular economy, but I want to take a couple steps back and talk about, you know, yes, circularity, but also, and there's so many things that we can sort of frame as the economy, but we've been hearing a lot about the K-shaped economy and not to throw too many things at your listener base and everyone who is potentially watching this or and or listening, but the K-shaped economy is something that everyone in in it's hot, it's hot, yeah. Economists, people who are watching the markets are talking about because it is irrelevant at by the in the way that people are shopping. And so I'm gonna explain just very briefly, I'll give you a TLDR on what the K-shape means in case anyone wants to know. But if you think of a K, right, the top half of the K is the spenders that are price agnostic. They put things on their credit card, they pay it off monthly. Price of strawberries go up to $12 a bucket. They're like, oh, that's weird. Okay, they'll pay it. Really doesn't matter if a trip to Europe costs $4,000 or $5,000 because the, you know, the exchange rate is is different. It doesn't matter to them because they're the top half of the spenders of the economy. Now, the bottom half, i.e., where I sit, is the bottom of the K. And that are those are people that see a box of strawberries at $12 and bulk and say, oh my gosh, that is way too expensive. Kids don't eat too much. Or you really have to watch pricing at the grocery store or really think about the next vacation that they're taking. And while I pay off my credit cards every month, there are those in the bottom half of the K-shaped economy that that probably hold those balances and see that interest rate increase.

SPEAKER_01 5:23

So when we talk about inelastic versus elastic, essentially.

SPEAKER_02 5:28

Yeah, or discretionary versus non-discretionary. And so when you talk about luxury items specifically with handbags, we are seeing that K really that that that becomes more prominent. We've always talked about the aspirational shopper, but where does that aspiration, where's that inflection lie when you have the aspirational shopper really in some instances on that bottom part of the K-shaped economy?

SPEAKER_01 5:58

Yeah.

Gen Z Luxury Spending And Vintage Bags

SPEAKER_01 5:59

And the funny thing is that twofold, that the Gen Z customer will spend their money or somebody else's money on a used, as I just saw at Manhattan Vintage, where I just did a trend story on that on my Substack. The amount uh bounciaga bags, Gucci bags, Fendi bags, like oh, the baguette, seeing the people who look like, you know, they have no need for any kind of plastic surgery, buying these products that clearly are either still in college or just recently graduated, absolutely do not have that kind of money coming in, going to buy those kinds of bags. And yet, my mom or somebody who'd be significantly older who has amassed real wealth would go to Old Navy and buy a bag because it's on sale, because it makes no sense to spend that kind of money on a product like that. It's like I want to say it's like K tipped upside down because it's you know confusing, because it doesn't make sense. Because back in the day, you know, vintage times, and I remember having this conversation with the fashion director, Bloomingdales that when she got her job, she would buy a Rebecca Minkoff bag in its prime. She would get a Minkoff bag, she'd get a morning after bag or one of those. And as soon as she got her first bump, she would buy a an original Chanel flat bag, not a used, god forbid, oi baby, a Chanel flat bag. And that was it. It was like one straight to the other, but everything now has changed tremendously. It's crazy.

SPEAKER_02 7:47

Well, there are a couple layers to this, and I can explain what is happening. So when we talk about the luxury consumer, right? And maybe this is a question for you and your listeners, but overall, who do you think is the one that's buying all the luxury items? And let's let's take this back a second, because it's 2026 right now. Let's start with around the pandemic. Who do you think was the largest consumer of luxury from 2020 to let's just say 2024?

SPEAKER_01 8:19

Yeah. How old were they?

SPEAKER_02 8:21

How old were they?

SPEAKER_01 8:22

Exactly. Oh, under 30.

SPEAKER_02 8:26

Under 30. How about if I told you they were between 18 and 24 because especially Gen Z, they were living at home. Yeah. All of that income was that they were making, right? From either working remote or, you know, in some cases, maybe they went to their jobs, but they were living at home. They had no overhead. So where was that money being spent? Oh, yeah. Um, brand new Gucci.

unknown 8:51

Yeah.

SPEAKER_02 8:52

And brand new Fendi. And, you know, in some cases, you know, now we have uh the rise of a circular economy, and people are wanting to be a little bit more conscious and environmentally friendly, which is great. But in that time frame, we saw huge spending coming from Gen Z, luxury spending, because they did not have the overhead. They didn't have bills. They their bill was to pay off their credit card after they bought a $5,000 handbag. They were the one paying for it. You're yeah, yeah. And I mean, I guess the idea is that they took all of that money that they were making and you know, maybe they saved it, but then they maybe they treated themselves and and and bought something. And so you're right when you say that pathway to aspiration is really changed. I was talking to Cynthia Rowley the other day, and you remember she had that book Swell, yeah, and it was my Bible. I loved it.

SPEAKER_01 9:42

Um she did it with someone else.

SPEAKER_02 9:44

Yeah, um, Eileen uh Rosenwood. Yes, Eileen. And and so the two of them, it was so great. And I was telling Cynthia that when when I was interning in in New York, and I I don't want to date myself, but back in the 90s, the late 90s, my treat myself moment was when I bought myself a Kate Spade tote handbag and a Cynthia Raleigh jacket. And you know, if I price them out now, those two together combined, I think was $400. And back then it was a lot of money for me. But now $400 is like a dinner of, you know, yeah, Balthazar.

SPEAKER_01 10:19

I know, oh my God. You know, I it's a fun fact about Balthazar, just to like go back. I used to go with my friend Tamu McPherson, as I was saying, of all the pretty birds, we would go there and have bread because the bread was free and water, and people would buy us drinks. So it was a very efficient night. And actually, one of the hosts from there are one of the owners of Jack's wife Freedos. So, you know, yeah, so because that's that's another story.

The It-Bag Playbook And Brand DNA

SPEAKER_01 10:49

But it's funny because I know when Balance Yaga took a dip, my students all had Balance Yaga bags. They all had that city bag, which I I tell I'm writing about in my next book as the textbook case study on how to create an it bag that has iterations that will have family members. Like this bag looks like a cousin, this one looks like an auntie, this looks like a baby, and keeping that DNA is really trying to incentivize people to want to buy more, buy more, buy more. So this way the iterations aren't so like, oh, look, I've got the whole collection. And then when the brand semi went upside down because of the designer, who supposedly may or may not was pushing some negative things with his messaging. People said they sold them, but no one sold their bags, they still held on to them because they knew. I mean, they knew it was coming back.

SPEAKER_02 11:46

Look at this. Look, like as as you're talking about this. Hello, and there you go. It's fully falling apart too. Look at this. Oh my gosh, this is oh no, I've got it.

SPEAKER_01 11:56

Is showing us a city bag, bouncy alga. It's 20 years old. Yeah, looks good.

SPEAKER_02 12:03

It does. I wear it all the time. It is it is one of my favorites.

SPEAKER_01 12:07

But you know, I it's East West bags are really trending, so you know it's it's something.

SPEAKER_02 12:12

What's old is new

Buy Now Pay Later And What They Buy

SPEAKER_02 12:13

again. You were talking about Gen Z, and I wanted to give you some statistics on this. So, you know, this is really interesting and like how they are managing their funds, right? Especially when it comes to buy now, pay later. So I was doing some research with After Pay Cash App, and we were deep diving into how Gen Z spends and their apprehension of, I don't want to say apprehension, but the credit cards in general. I think there's really just a distrust with Gen Z. They don't really trust credit cards. They think it's sort of, you know, like, ah, you know, well, they also drink a whole lot less.

SPEAKER_01 12:52

I mean, so yeah, they don't like they they don't spend on what we would believe to be worth spending. Or they don't drink, they don't go out to eat. It's very, very like it's not the same.

SPEAKER_02 13:04

And and tacking on, you know, with all of the added charges that credit cards may potentially give. And again, it's not a bag on credit cards, credit is driving the economy, right? We know that uh the Federal Reserve Bank of New York and Boston came out with this report and said that, you know, so much of like that, especially on the upper K is the one that is putting major purchases on their credit card, paying it off. And that's what's driving the economy forward, despite the fact that consumer sentiment that was just reported out, reported out today is at an all-time low again. Yeah, um, people do not feel good about the economy. But with that said, so you have this buy now pay later. People are really leaning on that, and I should say Gen Z especially, because it's a methodology that they can kind of pay for things and then hold on to it, pay at their at their leisure or you know, when it's due. But look what they're spending on. So I got some data from Afterpay. Um, thank you. I love data. This is really interesting. So uh between Gen Z, like there's strong sales growth in home improvement, furnishing, and baby products. So there are a lot of life transitions. Gen Z, aka Gen Z is getting a little older now, where they need this payment flexibility. So purchases of things like chairs, for example, up 126% when it comes to some of their data on buy now, pay later. Animal and pet supplies up 180%. Oh, I was just gonna say that's a lot. Yeah. Yeah. And here's one thing that's really interesting too. Event ticket sales up 14% and hotel accommodations up 36%.

SPEAKER_01 14:46

So we're so much I mean, I can like I'm already understanding. Like, okay, they've moved out of their parents' house for the very first time. They need chairs. That's a first investment on where they're gonna sit. Pets, okay, they finally get to have their own ownership. They don't need to commit to having a baby, they get their first dog, like all, and they don't want to Airbnb because that to them signifies I don't have money. I want to stay in a hotel, I want to be treat, I want to treat myself. So I mean, yeah, this is another crazy look.

SPEAKER_02 15:17

Listen to this statistic. So people want to look cool in airports, to your point, accessorizing, right? Yes, matching tracksuits, okay. Total growth is up 235%. And like, could you imagine matching a tracksuit like with your husband in an airport? That's hilarious. I do not want to do that with Seth, but apparently Gen Z loves that individually. But you know why? Because that's social media 623.

SPEAKER_01 15:44

Yeah, that's social media. Like we're traveling, here we go.

Social Storytelling Versus Real Etiquette

SPEAKER_01 15:48

And I had this conversation with my students about, and I always have my students write thank you notes. It's part of their grade. I'm BCC'd on everything. I need to see them, and it's it's part of the growth that I believe that is lacking with the understanding of human interaction because Gen Z is the most fired demographic to date, right? They don't know, they haven't had that one I'm on experience, they haven't been forced to the grit, the five-day week in office. But I said it's an interesting juxtaposition to not know how to write a thank you note, but you know how to do a front-facing video about get ready with me. And I I we've discussed that. And I said, listen, I can write a thank you note that could, you know, that's worthy of being framed, but I still struggle with front-facing camera. And they all said we had this very deep conversation of that's natural to us because we grew up as storytellers. So without, you know, I need that matching tracksuit because here I am storytelling. Like that's part of it.

SPEAKER_02 16:52

That makes complete sense. You know, I think the two of us are used to doing storytelling via written word, and clearly we're looking at a camera right now, not front-facing necessarily, but well, I guess this is front-facing, but would this be considered front-facing or would your phone?

SPEAKER_01 17:08

No, because you're with because you're with me. So I'm not alone. So it's like the it's it's taken off me. But it's kind of like when people go on social media and write this homage to their child. Happy birthday, the love of my life, my best friend. And this kid is three years old. And I'm thinking, do they, you know, are you expecting them to write back, you know, like, do they all know? You know what I'm saying? So it's this need for and to this day, they still watch the light count. And if the light count doesn't hurt hit a certain amount by a certain minute, they'll take it down, they'll archive it the whole thing because being your own best brand publicist really speaks to something. And I think, you know, taking that a step further, if we go back to bags, I want a storytelling. And if I want to storytell, I want you to see that I have a Fendi bag. It may or may not be a new one, but damn it, I have a baguette. Like, oh, it's a baguette. I get to say that and put the sound effect to go with it.

Handbag Designer 101 Masterclass Offer

SPEAKER_01 18:09

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SPEAKER_00 19:01

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SPEAKER_01 19:08

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SPEAKER_02 19:48

Mostly because, to your point, I have old baguettes that I had when I bought in 1998 and 1999. They're sitting in my closet. I was going to get rid of them. The reissue happened, and I'm like, oh, baby, we're back. I'm not getting rid of these. In fact, I might just wear them again.

SPEAKER_01 20:07

This is incredible.

SPEAKER_02 20:09

Incredible.

SPEAKER_01 20:10

Well, you got twins. Give them both of them. I'm sure it'll fit them perfectly. There are seven. It's it's just right on par.

SPEAKER_02 20:16

It's like, you know, I you would you could understand this. I bought actually, I think my father bought this for me. A Fendi. I guess, I guess it's a baguette, but it's um it's camel haired with leather. Oh my god. Beautiful. I didn't really wear it, so it's a really good condition, but I bought it because I was so influenced by Carolyn Bassett Kennedy's style. And I thought that it would just be so perfect. Yeah. Like an all-black outfit and like this beautiful camel bag. And I'm I I pulled it out and I said, what an interesting choice that I decided to buy this handbag. And I'm like, oh, I know why. Because I, you know, me being the an Indian woman so influenced by her style. I'm like, I can maybe even get like a sliver of her style incorporated into my own style. And I just I never even bothered. I kept that.

SPEAKER_01 21:05

No, her hips were got, you know, rest in peace, but her hips were way too narrow for anything I could ever aspire to. I'm like, I never look good in a pencil jean. It's just, you know, I had to move on. It was she was shining. It's funny, but I think I told you before, like, I spoke to Todd Khan in a drive-by. He was in a car, and I was talking to him about a potential project. And he said, we are so laser focused on this Gen Z girl that we opened up coach coffee in the outlets, and we knew that it would increase not only the spending time, the spending power, but the time spent by the family in store that we know that's going to be part of our home run. And I had this guest speaker, this really incredible guy who has a great Substack. I got to check his name because I don't want. Say it wrong because he's got a first name, middle name, last name. But he worked for Nike for years and he told this really awesome story about how they really wanted to get in with the high school junior. And the high school junior is the official influencer because he she they are still making choices, they're not going off to college. Their mindset is still very much being the best version of themselves, the best publicist they can be in-house, and that's school. So getting in with them then and growing with them was the lowest hanging fruit that they could find. Absolutely.

SPEAKER_02 22:41

It's interesting with that demographic and that generation, because I think, and we've heard this before, and I'm I'm gonna pull up some more research. I hope you don't mind me doing this in no, no.

SPEAKER_01 22:54

Oh, Jeffrey Allen Henderson, yes, find his sub stack. I love him. What is it, Jeffrey Allen Henderson? Henderson, yes, he's awesome, he's great.

SPEAKER_02 23:03

It's interesting, and it's not it's not a new concept to get in with a younger generation and have that generation grow with your brand. I think the best example of that, and don't laugh when I say this, but Taylor Swift. Oh yeah. Taylor Swift really did a great job growing with her demographic because you have 44-year-old women who started listening to her 20 years ago. And the memories and the words and the and that brand, you know, they are diehard Swifties, they will do whatever and buy whatever. And I mean, she really that branding, you know, she nailed that branding. And I think that retailers, specifically in brands, have taken a page from that playbook in in a in a real way. They always have. Martha Stewart did the same thing too. She really wanted you to start using Martha Stewart products like the second you became an adult. And you know, you you sort of grew with her on that. I don't know how well that played out for some people, but but Ralph Lauren, same thing. And so it doesn't, it doesn't surprise me that coach wanted to do that.

SPEAKER_01 24:15

Yeah, it's really, really funny. And we have this really amazing footprint at New York now with curated, I hate that word, but curated of 10 designers from around the world that we picked that all carry a unique DNA. And before the show, I meet with all of the designers one-on-one just to review their assortment, to talk about pricing, sizing, updating the bags, just to make them the best, the most sellable versions, like crossbody strap, make sure that there is one, making sure that if you're gonna have a shoulder handle, make sure the drop is long enough, the drop beaning from the top of the handle to the center zipper, making sure it's enough to at least go over an armpit, cold weather, skinny girl, not skinny. You know, there's all these intricacies. And then seeing in terms of trends, like how someone in Sweden versus someone in Colombia versus someone in Thailand and how they're also influenced on the same thing to make sure that they all have east-west bags, they all have a mini-mini bag to make sure, they all have an oversized bag to carry a laptop, but in terms of how it's made and structurally, it's just all really interesting, but like all these key points as to why these things are 100% making a comeback.

SPEAKER_02 25:39

Oh, completely. I almost want to send you this report, it's so fascinating. We should do like a whole other segment on just how Gen Z shops and what their perspective is on this. Um, you know, they it's even in the way that they want things

Unboxing And Packaging As The Product

SPEAKER_02 25:59

delivered. And I gotta tell you, I see it with my girls. I know you have older children, but I got both. That's right, you have both. That's right. You do have both. So I'm sure you see this with the littles and even your your younger children or your older children, how when the packages come from Amazon, it's like holiday morning. Yes. It's like, oh my God. It's the surprise and delight of opening up those boxes. Where when I was growing up, the surprise and delight came from going through racks and finding that awesome piece. So even in the way that product is discovered and the delight that comes from it, it has to do with packaging. Who would have ever thought that a box would cause so much excitement? A corrugated cardboard box. So I think when you look at Gen Z, and this is for any, you know, any audience that's part of the industry, we keep hearing data and statistics and and insights about, oh, how is a Gen Z shopping and what can stores do differently? But I don't hear a lot about packaging. And I think that is going to be the next frontier is how things are packaged because the younger generations, and I mean, quite frankly, all of us are getting programmed to get things like immediately or being sent in the mail. And, you know, while in-store experiences are really relevant and important, there's also something to be said about getting those packages delivered to us. So I think, as I said, the next frontier is going to be about how packages look and how that's delivered and that experience there, which I haven't heard seen a lot about. Maybe this is a reason why I need to do insights on that.

SPEAKER_01 27:40

Well, like that demographic grew up with unboxing. And that was part of their YouTube experience. And like going back to where opportunities lie, the first thing people will say is what's going on with your TikTok and what's going on with your YouTube channel. So unboxing isn't as sexy, you know, like a slime is sexy, no, but people still do it, people still play with it. It's never gonna go away. Right. Right. Or Rainbow Loom bracelets. Like once your kids age out of it, you think no one needs it, no one wants it, but it still sells. So it still sells, it still sells. And honestly, prior to COVID, even as a handbag designer who used to ship out product, I would send it in an envelope. I would hand write the label. I'd put a little thank you note inside on a note card. I was so less concerned with the experience of how they took it out, as so much more as I want to make sure you know how to wear it. I want you to know what you can put inside it. I want to make sure your experience with the product aligns with why I created it. What you do in terms of like how it got to you, I could have given two shits. And to see one of the people I was working with at the time who was not that much younger than me, but she was going on and on about like how a brand and the tissue paper and how it was wrapped and how it was taped and all of that. And I'm like, who cares? And she said, Yes, but it aligns with the experience of me feeling like I got my money's worth for what I paid for because of opening. And and there's a funny story, and I spoke about this because I just had one of the former owners a big drop on my podcast, and we spoke about the boutiques of the heyday, and one of them was Verve. And that was way back, it was on Blick, I became really good friends. Ironically, it was like becoming friends with the school principal after the fact, with Steve and Wendy, who were the owners. And the lore is, but I have to ask Rebecca Minkoff if this is true, but I've retold the story so many times, so it has to be at this point. Where she shipped, Rebecca shipped her order to to Steve to Verve. And it was one of those, like, you need to be there in order to be validated. It was like Verb, big drop, and like two other stores, Barney's at the time. And Steve called Rebecca up or Becky and said, You need to see this. So she came down and he said, I need you to see how you shipped the bags to me. This is not that. This is how you pack, this is how you ship. And she's like, Okay. And then he handed it back to her and said, Now reship it to me and then I'll pay you.

SPEAKER_02 30:41

So uh it's it's one of those things. I mean, it's always been uh obviously important. And I think you have some, especially, you know, the D2C smaller brands that are shipping and you know, they're really trying to make this whole thing. They they focus more. I don't want to say they focus more, but they really put an emphasis on that experience of that unboxing. But again, it hasn't been part of like the retail ethos in a major way. When Amazon starts doing interesting things with their packaging, that's when we know that unboxing has become like we're here, like this is happening. Like, you know, because right now I get Amazon packages and you know, like I love it. I buy Amazon. Yes, I don't think I could be the mom that I am without the Amazon. I mean, I I fully admitted between Whole Foods delivery and a Amazon uh loyalist. And but I don't think too much about that packaging. And even though my my like I said, my daughters love opening the corrugated cardboard. But could could you imagine if that package actually was personalized or how much exactly incredible, right? I mean, like, you know, really like hello, you know, yeah, my daughter's names like on that, or hey Heatha, like, you know, like I fun fact and some fun, you know, weird fact that I want to know about. Like, I think that is the horizon, and that's sort of where the future is

The Cultural Codes Shaping Spending

SPEAKER_02 32:04

going. Emily, I just pulled up the the the study that I wanted to kind of tell you about briefly. Um, again, I can send this to you too, but if if you know the audience wants to listen to this. Let's go. But this is a this is a the spring sort of report that Afterpay did, and it's called The Cultural Codes Driving Spring and Summer Spending. So it really talks about the identity of Gen Z. And it broke down the different types of identities that Gen Z, because you know, Gen Z, like with anything, no one is a monolith, but they broke it down into four different sections. And it was the wellness junkie, the analog revivalist, the 2016 nostalgia speaker. Why anyone wants to go back to 2016 is beyond me. That was the worst year of my life. David Bowie died in January, and it just started a whole like a downhill spiral for me. So don't know why anyone wants to go back to 2026 or 2016, I should say, but you know, well, there you go. I do not want to go back to that year. No, thank you.

SPEAKER_01 33:04

And the main character I gave birth on November 8th on election day. So fun fact to that. Oh wow.

SPEAKER_02 33:10

Well, I and you know what? Yeah, yeah, that I will never, oh my gosh, that that that's another story. That whole November was horrible because also my cat passed away. And it was just, it was a mess. But so main character and the comfort curator for our purposes. This is so crazy. They so they analyze again, like for per spending data for the main character, right? The person who's just sort of embracing, you know, like whatever high-end main character energy, faux fur coats, spending on faux fur coats is up 218%, and statement earrings up 164%. So this sort of emphasis on me, we were talking about the circular economy too, but I think there is this aspect of, you know, this is heightened, at least for this sort of branch of Gen Z spender, a real sort of focus on higher end things, whether or not they can afford it at the rate that the K at the top of the K is spending is a different story. But people want that and they want to be able to experience that in any sort of way that they can, whether they're buying vintage or they're buying, you know, full price, but faux fur coats.

SPEAKER_01 34:23

Oh, well, I was in London with my daughter last year, and she bought a vintage fur coat, and it's okay because it was vintage. Yeah. But I wanna just point out one thing, and then we'll wrap up because I know you and I could we could talk till the cows come home.

Analog Revival In An AI World

SPEAKER_01 34:40

All of the things that you have pointed out are very much human experience and not AI driven. Not a single one, not one. It was seafield touch, how it makes me feel, human experience. I want someone to see me doing that. And in order for me to do that, I need to be around people. And everything goes back to making a mark, which is tied to making a memory, which also goes back to you know, hoarding, which we won't talk about.

SPEAKER_02 35:15

Wow. That's that's again another episode, but yes. But you're absolutely correct. And I think there is an element, and we're starting to see a lot of research on that too. And honestly, I'm experiencing it personally. I have stopped binge watching television to start reading again. Can you believe that? I'm back to the literature books again.

SPEAKER_01 35:38

It is uh bookstores are such a hot place now. It's such a nice I'm like, hello, it's like seeing an old friend.

SPEAKER_02 35:45

I'm like, I used to like to do reading. Yeah, I used to like to read as a favorite pastime. And so I think, you know, not just reading, but you are seeing a lot of this generation and just in in general, a move to sort of declutter from the technology to turn it off, to do a lot more analog hobbies, like knitting and reading. And how about interacting with people and going to concerts and and traveling and and having experiences together? While I am again, I think AI is a great tool. I am very I'm a proponent of AI. I like using it as a tool. It helps me in my business. I think there is something to be said to embracing those analog interests again, like running. I ran a half marathon last weekend.

SPEAKER_01 36:34

Oh my god. No, it was your hips and your knee.

SPEAKER_02 36:39

Knees. Oh my god. Hips are okay. My lower back sort of hurt. It was in Brooklyn, and I have to tell you, and this is not a diss on the New York Roadrunners or anyone else that was that was running it, but there is six miles where you're just running down Ocean Avenue to Coney Island, and you think because it's sort of downhill, you're like, oh, this will be easy. Six miles, do it. No, friend. It's like, holy crap. Wow. Anyway, one of these days we'll have to talk about um running accessories and how that is changing, yeah, that's next.

SPEAKER_01 37:13

Okay, well, HIFA, clearly we're having you back. This is like selfishly. I I say selfishly a lot just because I am blessed to have a podcast that people listen to about things that all revolve around handbags and people love a handbag, but I get to have really awesome people on like yourself, where we can have just really cool conversations that don't suck. And I have been guests on podcasts where they ask the same stock questions over and over. And while that's wonderful, I think being part of an authentic dialogue where it's just you never know what nuggets are gonna come out, just they just make

Where To Follow Heetha And Her Book

SPEAKER_01 37:52

all that worth it. So, Heetha, how can we find you? Follow you, learn more about H2H Squared research and everything, um, everything Herzog from your side, not your host.

SPEAKER_02 38:04

You can you can follow me on Instagram. Actually, that's a personal account, so you might see a lot of kid stuff. So it's a Herzog. And obviously, you could follow me on LinkedIn at Heatha Herzog on LinkedIn. And if you are interested in reading about my book called Black Market Billions, where I tracked the sale of counterfeit and stolen bags and how that funded a terrace cell in Latin America. Please, you could find it on Audible and you can also find it on, I think you can find it on Amazon as well. So oh my God, I need to, I need to get my hands on that. No, it was a crazy, it was a crazy experience. And one of these days we'll have to have a discussion about it. It was it was a real interesting 10 months of my life where I was embedded with ice and the LAPD, and we were tracking these counterfeit rings that were selling counterfeit handbags, and it was beyond. It was a very interesting. I did not have kids at the time, and I think I was able to do some stuff like that and not be like, hey, let's track some back. Let's put ourselves in the front face of danger. So just in case, like, yeah, I would not do that, probably.

SPEAKER_01 39:08

Listen, the things I did in Russia to get real caviar, like the places I went just to bring some stuff back from my dad, like you know, yeah, like, oh yeah, black market, go behind an alley, go into a bag, you know, like you just like, oh yeah, why not? It's a story.

SPEAKER_02 39:23

It's wild. It was, it's it was a wild experience. Oh my gosh. He follow me there, find my book. Happy to be here, Emily. It's like talking to an old friend. You are yes, um, you yes, we've had such history, and everyone that's listening, it's you you just basically we're privy to a FaceTime call just now.

SPEAKER_01 39:40

Oh my god, 100%. He that we're coming, we're you're coming back. I don't even know what we're gonna talk about next, but thank you, thank you, thank you. Tune into Miss Heatha for a Zog. Thank you.

SPEAKER_00 39:50

Thanks for listening.

Final Thanks And Listener Request

SPEAKER_00 39:51

Don't forget to rate and review and follow us on every single platform at Handbag Designer. Thanks so much. See you next time.