It’s time to ask the kids who they’re wearing.
Because Millennials and Gen Z were responsible for most of the growth in luxury markets last year, a report from Bain & Co says.
Going for glam: Gen Z’s affinity for luxury brands may stem from “a surge in wealth creation over the past few years, along with social media.”
Shoppers as young as 15 are buying designer items, watches, jewelry, and more. Compare that to millennials, who didn’t buy this stuff until they were 18 years old on average.
So it seems likely that by 2023, Gen Z, Millennials, and Alpha will become the major drivers of luxury brand revenue.
Opulent and resilient: On another note, sales of personal luxury goods surged 22% this year – meaning they were immune to the ongoing recession.
Accessories like handbags led this growth, with leather goods picking up 40% compared to pre-pandemic levels.
Why we care: If you’re selling or advertising luxurious items, you may be targeting the wrong demographic – and your shoppers may be at the other end of the age spectrum.
Also, the industry is proving resistant in tough times, so if you aren’t getting results, you may want to shift your targets. And maybe your channels, too.
Speaking of channels…