- Wealthy Gen Z and millennial shoppers aren’t reaching for Hermès Birkins—they’re booking flights and taking boutique workout classes instead. For the next generation of affluent shoppers, a new report says “luxury is no longer just about what you own.”
Young people are no longer striving to enjoy their wealth with huge mansions, fast cars, and luxe clothes. The richest Gen Z and millennials are spending their money to have a fulfilling life with boutique workout classes and glitzy jet-setting.
“Luxury is no longer just about what you own,” according to a recent report from global marketing assessment company Assembly. “It’s about where you’ve been and what you stand for.”
“Millennials and Gen Z are at the forefront of redefining status, prioritizing identity-defining experiences, wellness, and shared values over possessions. The result is a seismic shift in the definition of what luxury means today.”
The report—which surveyed 3,000 high-net-worth consumers around the world—has one clear warning: meaningful connections have replaced materialism.
Young people want experiences over clothes
The report calls this shift in luxury spending the new “Centurion,” where Gen Z and millennials are driving a new meaning of grandiose living, connecting spending to their personal values.
And brands like Louis Vuitton and Mercedes should take note of changing times—new affluent shoppers will drive 75% of the luxury goods market, according to the Assembly report.
Gen Z and millennials have grown disillusioned by the glamor of Hermès handbags and Louboutin heels. Essentially, they’re looking for something a bit deeper than expensive outfits.
“Ultimate status has evolved beyond mere ownership of luxury goods; it’s now inclusive of creating unforgettable, identity-defining experiences,” the report says.
The report predicts that by 2028, international spending on luxury hospitality is set to skyrocket from $239 million to $391 billion, with the richest spenders taking the charge. But it’s not only jetsetting to Rome that’s on the rise—wellness, travel, and experience-focused luxury spending overall has been growing at twice the rate of luxury goods.
A huge part of why Gen Z and millennials are valuing a fulfilling life over possessions is because the goalpost of wealth has shifted as of late. Once high-quality knockoffs of luxury items became available to the mass public, carrying a Dior purse didn’t hold as much power. So the rich ushered in a new standard: supreme health and beauty. Spin classes, Erewhon smoothies, top-shelf skincare, and organic foods have now come to define the status of the 1%.
But there’s another underlying factor why young shoppers are turning to experiential luxury—they’re turning to more sustainable and inclusive brands, which better align with their values.
Looking for meaning and values in luxury goods
Young people are known to wear their hearts on their sleeves, and stand behind their values—no matter how much their bosses despise it. That same behavior plays into the way they shop for items.
“Luxury is no longer defined solely by exclusivity; it’s also about inclusivity and cultural relevance,” the report says.
Some companies have indeed caught wind of this and tried to rebrand their ethics, especially when it comes to environmental sustainability—but it often comes hot off the heels of being slammed for “greenwashing”.
Ultimately, Gen Z wants to put their money towards inclusive and eco-friendly businesses. About 71% of luxury shoppers express pride in their cultural identity, according to the report, and 42% look for brands that share their same personal values.
“As we enter this new era of value-driven and experience driven luxury, driven by a new generation of luxury consumers, now is the time for luxury brands to cement their identity and embrace these changes to ensure brand love and longevity into the future,” the report says.
This story was originally featured on Fortune.com
Source link
Politics8 years ago