The millennial folks of today, precisely those born between 1978 and 1992, are expecting different things from luxury brands, which the older generation could not even think about. Various studies have revealed that while today the millennials constitute about 32% of the global luxury market, by 2025, they are expected to make up about 50% of the entire luxury industry worldwide. And millennials are inducing luxe brands of today starting from watches like Hamilton Jazzmaster to bags, shoes, car and what not!
For all those who are curious to know more, here are some of the most incredible ways the Gen Z and millennials are influencing the market today.
- Innovations are the way to steal the hearts of millennials
The prime demand of the Millenials is that the luxury brands should offer something extraordinary, not something which is confined within the four walls of known. According to them, collaboration is what makes the difference and it brings innovation in the design along with unique collections which will offer a sense of individuality to the buyer.
Such collaborations often result in the release of limited editions and timed drops and can be found across various luxury products, especially handbags and sneakers. The most perfect examples of such collaborations featuring the fusion of streetwear and luxury are Chanel and Pharell, Louis Vuitton and Supreme and Adidas and Yeezy.
It is for this craze of millennials with all things creative and innovative that now various luxury brands are partnering with youth-friendly designers to create a competitive edge.
- Second-hand luxury is no more a stigma
While the second-hand luxury goods market is limited, there is scope for further growth within the next few years. Among the millennials who purchase brand new luxury goods, 44 % percent consider the resale value of the products they purchased. Also among them, 34 % sends their used goods to sellers, which indicates that the second-hand luxury market is on a slow rise.
In a nutshell, 45 % of the customers who indulge in luxury products participated in the 2nd hand market and out of that, about one-fourth of them have also claimed to use second-hand luxury goods at least once in their life.
But contrary to the popular belief, it is not only the relatively lower price of the 2nd hand products that attract millennials, but it is often the only way millennials can get their hands on limited edition products.
Some millennials also have a thing for vintage items and sometimes the only way to acquire vintage luxury goods is to hunt the second-hand luxury market for it.
As the new collections of the brands are pouring in, millennials are finding it difficult to control their shopaholic desires, they are considering ultimate ways to empty out their wardrobe to make room for new luxury products.
So if you also want to be a responsible consumer while making the most of the luxury markets, consign your luxury goods which do not appeal you anymore.
- Sustainability is the way to be socially responsible
Since 2013 the buying decisions of luxury goods of customers have changed dramatically. It has been found that now customers are all set to become socially responsible by delving into the path of sustainability.
A survey conducted to analyze the behavior of luxury brand customers proved that 56% of such customers prefer to show their loyalty towards brands which accustom themselves to sustainability practices. Another 62% claimed that they would prefer to do business with a brand which supports sustainability. You would be stunned to know that the countries which are most rooted in the beliefs of sustainability are neither the USA nor the UK; rather the countries are Japan, South Korea, China, and France. The sustainable luxury consumers are mostly concerned with animal care, ethical manufacturing and environment and trends suggest that millennials are primly focused about animal care and environment.
Looking at the insights drawn from the luxury market, you can easily make out that Sustainability will rise continuously and it will drive the second-hand luxury market. More and more brands are adopting sustainability in their company policy by releasing limited edition merchandise, instead of flooding the market.
Statistics say that the motive of the high-end brands behind such moves is to promote the second-hand luxury market.
Since many Gen Zs are living at home, they are influencing their Gen X parents to indulge in the purchases of luxury products.