While the rest of the world is marketing its products towards internet-savvy Millennials, one industry sector is making it their mission to ensure they retain the devotion of the forward-thinking, high-spending generation.
The luxury sector are beginning to tap into millennial behaviours and spending (think Alessandro Michelle bringing Gucci an entirely new generation of shoppers, and brands upping their social media game), and this is largely due to the spending power that Millennials have. By 2035, Millennials will have the potential to become the largest spending generation in history, according to marketing expert Pam Daniger’s paper Five Luxe Trends for 2015.
While the luxury market today remains driven by affluent Gen X-ers and Baby Boomers, the Millennial fans of luxury are growing. This is driven by the fact that more than half (55 per cent) of US Millennials grew up affluent*, and are therefore predisposed to living luxuriously. Furthermore, 72 per cent of Millennials agree that “once you experience true luxury, it is hard to scale back.”*
Additionally, while Millennials have been pegged as a generation eager to live comfortably out of their parents pockets, a predisposition for luxury goods doesn’t allow for a lack of career success. An astounding 72 per cent* of Millennials agreed that success in your career defined who you are – this outpaced any other generation.
Ultimately, as Millennials begin to enter their peak earning years, it remains important for luxury brands to rise to the challenge of engaging with their younger fans, as they will inevitably be their key customers for years to come.
* all stats pulled from YouGov Study, 2017
