The luxury market and millenial generation

1

The importance of technological innovations is a reality that grows exponentially in almost all market segments. There is currently no economic sector that does not use the new digital tools to somehow create new products and solutions or seek customers wherever they are.

At the other end of the business relationship are precisely the consumers whose interest in the benefits and facilities provided by technology has also been increasing considerably in recent times. And among this audience, the so-called millennial generation is one of the main highlights. Utilizing technology intuitively and attentive to all innovations, young millenials are gaining more and more space in society.

In the high-end segment, this situation is no different and according to a survey conducted by Bain & Company, a consulting firm specializing in analyzing market trends, by the year 2025 millennials will account for almost 40% of the consumption of Luxury all over the world.

Nowadays, the new generations already play a very significant role in the revenues of the main brands. According to the same report, today the millenial public represents 27% of consumers of luxury goods and 14% of this total is formed by young people aged between 18 and 24 years.

According to a statement from Gabriele Zucarelli, a partner at Bain & Company, “the most striking feature of this audience is their buying process, which is strongly influenced by the online environment.” This observation, certainly, is not a big news for those who work in the area. The connection of full-time young people with the digital universe and, especially, with social media has been causing great changes in consumption and, as it could not fail to be, the growth of virtual commerce.

One of the best news stories in the Bain & Company study is that despite the recent changes in the commercial strategies of the major brands, the physical stores will not disappear, only reduce their expressiveness. That is, customers who like to feel a more intimate experience and more personal contact with luxury goods before the acquisition, will certainly continue to have their spaces guaranteed in the future.