Table of Contents

1. Key Highlights
2. Introduction
3. Sneakers: Nike’s Waning Grip and the Rise of Boutique and Performance Labels
4. Apparel: Fast Fashion, Accessible Quality, and Lululemon’s Soft Spot Among Interns
5. Handbags: Luxury Returns as a Readily Visible Status Marker
6. Exercise and Wellness: Gyms as Community, Status, and Corporate Perk
7. Food and Drink: Chipotle Reigns, Coffee Choices Show Nuance
8. Cars and Mobility: Hybrid Preference, Premium Brands, and Robotaxi Openness
9. What These Preferences Reveal About Gen Z Values and Priorities
10. How Employers and Recruiters Can Read This Data
11. What Brands Should Do Next: Tactical Recommendations
12. Limitations of the Survey and How to Interpret the Findings
13. Looking Ahead: Signals to Monitor Over the Next Five Years
14. FAQ

Key Highlights

• A Morgan Stanley survey of 500+ North American summer interns shows shifting brand loyalties: Nike’s dominance is falling while On and other niche sneaker brands rise; Zara and Uniqlo lead apparel choices, and luxury handbags are gaining ground.
• Practical preferences point to lifestyle priorities: over half prefer indoor gyms, Chipotle dominates dining choices, and hybrids top electric vehicles among future finance professionals—while robotaxi preferences for Uber and Waymo indicate growing acceptance of autonomous mobility.
• These patterns illuminate how Gen Z values status signaling, convenience, and hybrid approaches to sustainability; marketers, automakers, and employer brands must adapt product, positioning, and workplace strategies accordingly.

Introduction

A snapshot of more than 500 Morgan Stanley summer interns offers a clear portrait of early-career consumers who will shape markets in the decade ahead. The survey asked about everyday decisions—what shoes they lace up, where they grab lunch, which bags and cars they prefer. Those answers reveal more than taste. They capture how a generation combines brand heritage, practicality, social signaling, and nascent sustainability preferences when making consumption choices.

Interns, most aged 21 or younger, ranked Nike as their top sneaker brand but with a markedly reduced share compared with previous years. Zara and the newly introduced Uniqlo tied for fashion relevance, while luxury handbags reclaimed prominence among female respondents. Chipotle towers over other fast-casual options; independent coffee shops nudge past Starbucks. Hybrid vehicles outrank fully electric models, and a sizable portion of interns favor Uber or Waymo when asked about robotaxi providers.

These preferences reflect cultural and economic forces shaping early-adult behavior: the search for recognizable status markers that remain practical, the premium placed on convenience and community, and cautious optimism about new mobility technologies. The results also offer advance warning to brands: what connects with today’s interns will likely scale as they move into higher-earning phases of their careers. The next sections unpack these findings, connect them to broader market dynamics, and outline practical steps brands and employers can take to stay relevant to this cohort.

Sneakers: Nike’s Waning Grip and the Rise of Boutique and Performance Labels

Nike remains the single most-cited sneaker of choice among Morgan Stanley interns, but the brand’s share has declined sharply—from 58% in 2021 to 28% in this year's survey. That erosion reflects intensified competition across price points and a more fragmented set of priorities among younger consumers.

Why Nike’s share has dropped Nike faces multiple headwinds. A string of product-cycle missteps, changing retail dynamics, and public relations misalignments have dented perception. Meanwhile, competitors have pushed hard on design narratives, technical advantages, and community-building. Nike’s historical strength—brand ubiquity and cultural cachet—no longer guarantees dominance among a generation that prizes novelty, niche status, and brands perceived as authentic.

Who’s winning the slack Swiss label On rose to second place at 13%, up from 8% the year before. Its appeal rests on lightweight performance engineering, minimalist design, and a premium-but-not-exorbitant price point. Hoka, known for maximalist cushioning and running-focused communities, also landed high on preference lists. These brands illustrate two trends: the influence of performance credibility and the premium consumers place on differentiated silhouettes.

Streetwear and collaborations still matter Streetwear culture sustains a market for limited-release drops and collaborations. Smaller brands and designer collaborations with established manufacturers allow younger buyers to access visible but less mainstream status markers. Nike retains relevance through selective collaborations, but consumers increasingly diversify their sneaker wardrobes—one pair for style, another for training, and a third for comfort or travel.

Implications for footwear makers Brands must balance broad appeal with targeted authenticity. Large incumbents should invest in micro-communities, drop culture, and performance narratives to reclaim younger spenders. Smaller brands can continue growing by combining superior product performance with storytelling and influencer-anchored marketing.

Real-world example Consider how On scaled beyond niche running circles through partnerships with design-forward influencers and retail placements in lifestyle stores. Its rise mirrors the success of other specialists that once served only athletes but now attract mainstream buyers because they deliver both function and fashion.

Apparel: Fast Fashion, Accessible Quality, and Lululemon’s Soft Spot Among Interns

Fashion preferences among the interns show a blend of affordability, functionality, and selective brand prestige. Zara leads with 22% preference, Uniqlo closely follows with 21% (its first year in the survey), and Lululemon, long a favorite for athleisure, slipped from 22% last year to 19% this year.

Zara and Uniqlo: two distinct models that resonate Zara’s continued strength highlights the enduring appeal of fast fashion’s rapid trend cycles and low-cost access to runway-inspired looks. Uniqlo’s near parity suggests interns value build quality, minimalist design, and functional apparel—qualities that align with student budgets and a preference for versatile wardrobes. Uniqlo’s expansion into tech-infused basics (Heattech, Airism, and collaboration lines) offers practical value without sacrificing image.

Lululemon’s softening appeal Lululemon’s drop reflects mounting competition and growing price sensitivity. The company’s premium pricing and recent public proxy disputes have impacted perception among younger buyers who balance brand allure with practical value. Nevertheless, Lululemon retains an edge for performance and workplace-casual apparel.

Rise of legacy brands and luxury signaling Ralph Lauren made notable gains, preferred by 18% of interns. That shift aligns with a broader movement: younger consumers are re-engaging with heritage and luxury brands as tools for status signaling. McKinsey research highlights that Gen Z and millennials increasingly view exclusivity as a reason to spend on luxury. Heritage names offering accessible entry points—silver-label items, logo reissues, or smart-second-tier lines—can capture new adopters.

Sustainability and resale’s influence on apparel choices Although Zara and Uniqlo lead, sustainability and secondhand markets also factor into purchasing behavior. Younger consumers balance the need for affordable, trendy items with an awareness of environmental costs. Brands that improve transparency, offer circular strategies (resale, repair, recycling), or position durable basics as sustainable alternatives can disrupt fast-fashion dominance.

Implications for retailers Brands should diversify product tiers: accessible entry-level lines for everyday use, premium offerings for status moments, and circular services that address sustainability concerns. Retailers that blend convenience (fast delivery, easy returns) with community-building (in-store events, loyalty programs) will retain young shoppers.

Handbags: Luxury Returns as a Readily Visible Status Marker

Handbag preferences shifted noticeably. Luxury brands reclaimed the top spot among female interns—20% now prefer high-end labels after a dip to 15% last year. Chanel and Dior emerged as favorites. Coach and Longchamp followed, while 34% reported no strong preference.

Why handbags matter more than shoes or shirts Handbags occupy an outsized position as visible status signals. A well-known bag conveys wealth and taste in a single, understandable package. For young professionals entering finance, law, or corporate roles the handbag functions as a durable, portable marker of belonging in certain social and professional circles.

Luxury’s strategic comeback Luxury houses have executed strategic changes to court younger consumers: smaller leather goods at lower price points, refreshed logo treatments, social media savvy, and collaborations with streetwear or pop culture figures. Many brands also invest in experiential retail and resale partnerships, allowing aspirational buyers entry points and preserving brand control over authenticity and desirability.

Secondhand and investment thinking Younger buyers increasingly view luxury bags as long-lived investments. The strong resale market reduces perceived cost by framing a purchase as asset-like: buy a classic piece today, resell later at a smaller net loss, or even at a premium. Platforms like The RealReal, Vestiaire Collective, and specialized store-in-store experiences have normalized this behavior.

Implications for luxury houses Luxury brands can accelerate growth by sustaining entry-level ranges, strengthening authenticity channels, and leveraging limited releases to stoke desirability. Younger buyers reward brands that signal heritage while offering modern relevance.

Real-world example Chanel’s classic flap and Dior’s Lady Dior continue to hold value on secondary markets. Brands that maintain scarcity, serviceability, and craftsmanship sustain long-term desirability among younger buyers who treat these purchases as status tokens and durable goods.

Exercise and Wellness: Gyms as Community, Status, and Corporate Perk

More than half of interns prefer working out at an indoor gym; 24% favor outdoor exercise; only 3% lack a preferred way to exercise. These patterns underline fitness as central to daily life for many early-career finance professionals.

Gyms as status and networking venues High-end gyms such as Equinox and Life Time function as places to see and be seen—networking hubs as much as fitness centers. Membership conveys disposable income and dedication to self-maintenance. Wall Street firms invest in on-site gyms and wellness facilities to compete for top talent and to reduce friction for employees seeking a work-life balance.

The role of convenience and employer benefits Corporate real estate in finance hubs often includes fitness amenities. Firms tout in-house gyms to attract interns and entry-level hires who value time efficiency. When commuting long hours or balancing demanding workloads, proximity to exercise facilities becomes a practical loyalty driver.

Digital fitness and hybrid models Though gyms dominate, at-home and virtual fitness options retain relevance. Younger consumers alternate between in-person classes for social and motivational advantages and digital sessions for convenience. Brands that blend both—on-demand classes, app-driven coaching, and integrated wearable data—satisfy this hybrid approach.

Implications for fitness brands and employers Fitness chains should position offerings as both lifestyle and networking platforms, adding social programming and partnerships with employers or local influencers. Employers must view fitness benefits not as perks only for senior hires but as recruiting differentiators for interns and early-career staff.

Real-world illustration Equinox’s premium pricing and curated classes make membership aspirational. Life Time’s family-focused campuses appeal to longer-term lifestyle commitments. Employers offering subsidized memberships or in-house classes reduce barriers for interns to join these communities.

Food and Drink: Chipotle Reigns, Coffee Choices Show Nuance

Dining and beverage preferences reflect a mixture of taste, convenience, and cultural identity. Chipotle leads overwhelmingly—57% named it their favorite restaurant chain—followed by Chick-fil-A (43%) and Cava (32%). For coffee, independent cafés narrowly beat Starbucks, 49% to 46%.

Chipotle: price, speed, and customization Chipotle’s dominance owes to accessible price points, consistent quality, and customization. Burrito bowls and guacamole have become staples in young professionals’ routines—portable, protein-forward, and fast. The chain’s digital ordering and loyalty infrastructure align with the convenience expectations of interns on tight schedules.

Independent coffee shops versus Starbucks Preference for independent coffee shops reflects both taste and social signaling. Independent cafés convey localism and authenticity; they often provide quieter work environments and a portfolio of specialty beans. Starbucks maintains high penetration, but the margins between brand loyalty and local preference narrow as younger consumers trade ubiquity for curated experiences.

Fast-casual competition and health considerations Cava’s place among top choices shows demand for Mediterranean-inspired, healthier fast-casual options. Chick-fil-A’s high ranking reflects the strength of convenience, service, and a product that consistently satisfies. Chains that combine speed, perceived healthfulness, and easy digital ordering excel.

Implications for restaurant chains Operators should invest in digital ordering, loyalty programs, and menu items that balance indulgence with perceived health. Smaller players can compete by emphasizing local sourcing, unique flavors, and comfortable spaces for remote work or study.

Market example Chipotle’s investment in digital infrastructure and loyalty rewards accelerated its growth through convenience-focused expansion. Meanwhile, local coffee shops in financial districts attract interns seeking quieter spaces for calls or focused work sessions, offering an adjacent revenue stream through daytime-focused foot traffic.

Cars and Mobility: Hybrid Preference, Premium Brands, and Robotaxi Openness

Automotive preferences among interns combine practicality with aspirational markers. Mercedes is the preferred brand, Tesla ranks lower, hybrids are the top drivetrain choice, and robotaxi interest favors Uber and Waymo in close measure.

Why Mercedes leads Mercedes-Benz carries legacy prestige and perceived craftsmanship—with entry models that still convey status. For young professionals, a Mercedes badge signals professional success while remaining recognizably aspirational.

EV adoption remains cautious Only 16% favored fully electric vehicles. More than 40% opted for hybrids. The moderate embrace of EVs reflects a balancing of environmental concerns, infrastructure realities, and cost considerations. Charging networks, range anxiety, and higher upfront prices remain barriers for many early-career buyers.

Robotaxis: openness to autonomous options When asked about robotaxi preference, 31% favored Uber and 29% selected Waymo—an increase from the previous year. This suggests rising comfort with autonomous mobility, especially as a supplement to vehicle ownership or urban commuting.

Contextual forces shaping car choices Urban residence, parking costs, and commuting patterns influence these preferences. Younger finance professionals in city centers may prioritize ride-hailing and car-sharing over ownership. Where car ownership matters, hybrids offer a perceived middle ground between sustainability and convenience.

Implications for automakers and mobility providers Automakers should accelerate hybrid offerings and expand affordable EV options with supportive infrastructure. Mobility providers can capitalize on rising robotaxi acceptance by improving accessibility, safety communication, and price competitiveness. Partnerships between automakers and ride-hail firms could create paths to wider acceptance.

Industry example Waymo’s measured rollout and emphasis on safety have increased public trust in autonomous vehicles. Uber’s legacy position as a one-stop mobility provider gives it broad appeal even as new entrants push autonomous technology. Automakers that present hybrids as transitional options and offer subscription-based access to vehicles can tap a generation not yet ready for full ownership.

What These Preferences Reveal About Gen Z Values and Priorities

The survey paints a consistent portrait: Gen Z consumers combine aspirational status signaling with pragmatic choices. They value visible markers—bags, badges, and sneakers—that confer social standing in professional environments. Simultaneously, they prioritize convenience, functionality, and flexible approaches to sustainability.

Status without conspicuous consumption Younger professionals favor accessible luxury and heritage brands over purely ostentatious displays. A Chanel bag or Mercedes badge sends a clear message; flashy logos across all purchases are less essential. That nuance shows a generation using selective consumption to express identity rather than pursuing uniform luxury.

Practicality guides many choices Chipotle for lunch, gyms for fitness, hybrids for cars—these choices emphasize daily utility. Interns juggle demanding schedules. Products and services that reduce friction—fast ordering, reliable performance, multi-use garments—gain preference.

Sustainability through moderation and circularity Rather than fully rejecting non-sustainable options, many interns apply hybrid strategies: choosing hybrids over full EVs, selecting long-lasting luxury bags, or buying secondhand. This behavior suggests a pragmatic route to sustainability that blends values with economic realities.

Community and authenticity Independent coffee shops and boutique fitness classes highlight the value of community. Brands that foster local, authentic experiences earn loyalty even when global chains offer convenience.

Implications for brand positioning Marketers should tell layered stories: product performance, social relevance, and practical benefits. Offerings that deliver on one or more of these will resonate. Brands should avoid assuming Gen Z behaves uniformly across categories; preferences vary by context and purpose.

How Employers and Recruiters Can Read This Data

For firms that recruit interns, these preferences offer a window into workplace expectations. Benefits like on-site fitness centers, convenient food options, and opportunities for social connection matter. Corporate culture that supports work-life balance and visible markers of professional identity—dress codes that accommodate aspirational brands, curated onboarding gifts, or flexible office spaces—can influence recruiting and retention.

Recruiting tools and perks

• Subsidized gym memberships, curated commuter benefits, and well-appointed cafeterias appeal to interns focused on convenience.
• Branded professional attire allowances or affordable wardrobe guidance can assist early-career hires navigating corporate dress norms.
• Local partnerships with coffee shops and restaurants can enhance campus culture and provide networking areas.

Employer branding example Firms that emphasize professional community—network events, mentorship circles, and wellness programming—make tangible investments in interns’ priorities. Those perks support longer-term retention by aligning workplace culture with the lifestyle values the interns already hold.

What Brands Should Do Next: Tactical Recommendations

1. Recalibrate product tiers and price points
   • Introduce accessible entry-level luxury items and smaller-ticket luxury-adjacent goods to capture aspirational buyers.
   • For footwear, offer multiple lines: flagship performance, lifestyle silhouettes, and limited drops.
2. Invest in digital convenience and community
   • Strengthen loyalty apps, quick ordering, and local community initiatives.
   • Combine digital commerce with experiential retail and events to deepen engagement.
3. Emphasize transparency and circularity
   • Offer buyback or resale programs, repair services, and clear sustainability reporting.
   • Position hybrid products—both in cars and apparel—as pragmatic sustainability options.
4. Communicate safety and reliability for new tech
   • Mobility providers must stress safety records and integrate human oversight for autonomous services.
   • Educational campaigns and transparent testing results build trust among younger users.
5. Leverage workplace partnerships
   • Brands can team with employers to offer employee discounts, curated pop-ups, or product trials in office settings.
6. Craft authentic storytelling, not just aspirational messaging
   • Highlight craftsmanship, community roots, and tangible product benefits.
   • Use user-generated content and local influencer partnerships rather than only macro-celeb campaigns.

Case example: a shoe brand playbook To replicate On’s growth, a larger brand might launch a focused performance line, partner with running clubs in city centers, and release limited drops that integrate technical innovation with sleek aesthetics. Simultaneously, offering trade-in or recycling programs can close the loop and appeal to eco-conscious buyers.

Limitations of the Survey and How to Interpret the Findings

The Morgan Stanley intern survey offers useful signals, but it is not a general population poll. Interpret the results with these caveats:

• Sample bias: Respondents are Morgan Stanley interns—primarily finance-oriented and likely more career-focused and potentially more urban than the broader Gen Z population.
• Geographic concentration: The survey targets North American interns; regional tastes vary significantly across countries and even within the US.
• Age distribution skew: Most respondents are 21 or younger, so preferences may shift as this cohort ages and income rises.
• Self-reporting limitations: Expressed preferences may differ from actual purchasing behavior once budgets and life circumstances change.

Use these findings as directional insights rather than definitive forecasts. The survey identifies trends among a particular subset of future professionals that brands should monitor alongside broader market research.

Looking Ahead: Signals to Monitor Over the Next Five Years

1. Luxury-as-investment dynamics
   • Watch resale price stability for luxury bags; sustained value retention will encourage more purchases as quasi-investments.
2. Sneaker market fragmentation
   • The split between performance-oriented and fashion-oriented sneakers will deepen. Teams that master both will capture greater market share.
3. EV adoption tipping points
   • Charging infrastructure expansion and cost reductions will determine whether hybrids remain the transitional choice or EVs become dominant.
4. Robotaxi normalization
   • Regulatory shifts and safety milestones will accelerate adoption. Urban interns who rely on ride-hailing may drive demand for autonomous services as a primary commute option.
5. Workplace benefit evolution
   • Firms that institutionalize lifestyle benefits—fitness, food partnerships, and flexible hours—will be more competitive in recruiting early-career talent.
6. Circular economy integration
   • More brands will introduce buyback, resell, and repair options as standard offerings rather than experimental features.

Brands that watch these shifts and design adaptive strategies will gain early advantages as this cohort moves into higher-earning life stages.

FAQ

Q: Who participated in the survey and how representative is it? A: The survey polled over 500 Morgan Stanley North American summer interns, most aged 21 or younger. It reflects preferences among interns at a major financial firm and should be viewed as indicative of early-career finance professionals rather than the entire Gen Z cohort.

Q: Why did Nike’s preference drop so markedly? A: Nike’s decline in this survey stems from increased competition, shifting cultural dynamics, and a proliferation of brands that meet specific needs—performance, comfort, or stylistic novelty. Competitors have gained traction by targeting niche needs and leveraging community-driven marketing.

Q: How should luxury brands interpret the return of handbags? A: Luxury houses should view this as an opportunity. Younger consumers are using bags as visible status markers and investment-like purchases. Brands can expand accessible entry points, ensure scarcity where needed, and strengthen secondary-market authenticity to capture this audience.

Q: Does the preference for hybrids mean EVs won’t grow? A: Not necessarily. Hybrids currently represent a pragmatic choice balancing cost and infrastructure concerns. Broader EV adoption depends on charging availability, total cost of ownership improvements, and continued price declines. Hybrids may be a transitional dominant choice during this phase.

Q: What does the preference for independent coffee shops say about brand loyalty? A: It reflects a desire for authenticity and local community. Young consumers prize curated experiences, quality, and ambiance. National chains remain important for convenience and predictability, but indie cafés attract those seeking differentiated experiences.

Q: Can employers leverage these findings to better recruit interns? A: Yes. Employers should invest in convenient and meaningful perks—accessible fitness options, food partnerships, career development programming, and workplace environments that support community and professional identity formation.

Q: How should marketers prioritize investments based on this data? A: Prioritize offerings that combine visibility, functionality, and convenience. Invest in digital infrastructure, community-building, and circularity programs. Tailor campaigns that respect young consumers’ nuanced balance of aspiration and pragmatism.

Q: Where will these interns’ preferences matter most in the future? A: Preferences will scale as these interns move into roles with greater purchasing power. Early acceptance of brands, mobility solutions, and lifestyle services often translates into long-term brand loyalty—provided the brands continue to evolve with their needs.

Q: How often does this survey run and where can the full results be found? A: Morgan Stanley conducts this annual survey through its equity research team; the results are typically published following the summer internship cycle. Full reports and datasets are accessible through Morgan Stanley’s research publications or partner press coverage when released.

Q: Are there signals here for sustainability-focused brands? A: Yes. Younger buyers favor practical sustainability measures—durable goods, resale markets, and hybrid solutions. Brands that integrate circular programs and clear sustainability communications will win a share of this pragmatic eco-conscious market.