Although Millennials may have less disposable income than the generations preceding them, simply profiling this consumer by income may not be the best strategy. While their predecessors may have been status seekers, Millennials view luxury differently. Quite simply, Millennials don’t buy luxury goods to impress others, they buy premium products because they believe they are better. Researchers found that today’s luxury retail consumer tends to be younger, urban, and well-informed about the brands she buys. Discover how this consumer learns about luxury brands, when she’s most apt to buy, and the influencers that matter most.
10 Facts About American Millennial Luxury Consumers 2017
1. Twenty-one percent of American Millennials buy luxury products to treat themselves, 18% say luxury products make them feel good, and 16% purchase luxury items because they perceive them to be of higher quality.
2. Forty percent of Millennials say quality is the single most important thing that attracts them to a luxury brand.
3. Fifty-five percent of Millennials say they are “very interested” in luxury goods.
4. American Millennials learn about luxury brands and high-end fashion via social media (23%), glossy magazines (14%), celebrities (13%), a brand’s website (12%), fashion websites (12%), friends/family (12%), and blogs (9%).
5. When it comes to influencing purchase, 39% of American Millennials say the endorsement of a friend they admire has the most effect on their decision to buy, but other influencers are important too—24% are influenced by celebrities or people they follow on social media.
6. Luxury purchases are impulsive . Twenty-one percent purchase luxury goods for night out, party or other occasion and 19% buy when they find something they love.
7. More than half of all luxury products are bought in-store, rather than online. Almost 26% of Millennials say they buy in store because they enjoy the sensory experience of in-store shopping Twenty-five percent of Millennial consumers prefer the in-store experience so they can feel the products and try them on.
8. Personalization is everything. In the U.S. almost three quarters of Millennials would pay a personalization premium, that rises to 98% when you include those who would consider it.
9. Forty-nine percent of Millennials “always” and 40% “sometimes” consider the ethical profile and sustainability of luxury brands before making a purchase.
10. Millennials value their individuality over loyalty. Thirty-six percent say they’ll buy what they like regardless of the brand, and 34% consider buying from a few preferred brands, while 22% consider from a wide range of brands. Only 8% consider buying from one preferred brand.
When Marketing to Women, Trust the Experts
Developing an omnichannel marketing strategy that creates an individualized experience both online and in-store is the key to capturing the new wave of growth in luxury. Women’s Marketing offers our clients a suite of marketing services designed to help brands succeed.
Source: Deloitte Bling It On What Makes a Millennial Spend More, 2017