Are Millenials turning to luxury?

It is now proven that millenials and Gen-Z have, with the power of their strong opinions and social media that they wield better than anyone, else shape trends in all aspects of everyday life, while determining consumer behaviours and habits.

They are better informed than any other generation, they are aware of all developments, they are more aware, they move and buy with different criteria than in the past.

For their part, business leaders have become aware of the given shift in buying behaviour, trying to bridge the gap between millennials' and Gen Z's love for a specific category of goods, which is none other than luxury.

Particularly in the fashion industry, there is a significant portion of this particular generation of consumers who prefer to invest a little more in luxury items, which could probably have a longer lifespan. But it seems that millennials in general, in a daily life filled with more and more demands and crazy pace, are interested in investing in taking care of themselves and upgrading their experiences and quality of life. At the same time, they are interested in the future, both personal and overall. So as millennials and GenZers invade the luxury market, they are again looking for the sustainability piece in everything from fashion to the food they consume. The truth is that millennials are spending more money on brands that are socially responsible and environmentally conscious.

After the consumer frenzy of previous years, luxury branded items such as rings and diamonds, expensive cars and expensive clothing seem to have been demystified to a certain extent.

The other side of the coin

?But there is also the other side of the coin. In this regard, it is interesting to note the findings of a survey by the Boston Consulting Group, a business consulting firm, that millennials, those who can afford it, are turning to spending on luxury goods, challenging the popular notion that the younger generation is more conscious and prefers environmentally sustainable choices.

Also, according to the same survey, millennials are investing their money in luxury experiences. 54% spent money on experiences in the last year, but 63% preferred luxury goods. 51% of millennials believe they will spend more money on luxury items in the coming year, while in comparison, it's worth noting that a large percentage of previous generations leaned in the opposite direction. Specifically, 67% of GenXers and 80% of Boomers plan to spend less on this category of items.

Unfortunately, the motivation for most of the millennials who desire luxury items has to do with the social status and prestige that comes with them. The majority (54%) who participated in the survey want to show off their wealth and achievements through luxury purchases, while 70% are interested in showing their image by purchasing such items.

Social media are largely responsible for this trend. Younger generations, especially millenials and GenZers, have a strong tendency to be influenced by public figures they consider role models. According to this survey, this figure is 63%.

These are entire generations who grew up "in the company" of social media, posting how they look, what they wear, where they go on holiday and how they feel. Posting their entire daily lives and consistently monitoring the daily lives and images of others. So it's probably inevitable that they don't care about their status and image in a reality that "wants" them to be flawless.

And all this phenomenon is accompanied by a paradox, two conflicting goals. On the one hand, the tendency triggered and directed by the desire to differentiate oneself, to be unique and to escape from the masses, through luxurious appearance and high social status, to show one's "superiority", in relation to the rest, and on the other hand, to assimilate into a group. To enter the circle of the "unique" but who also fit and resemble each other. To enter the world of elites and become part of them, with a deep desire to join and belong somewhere. For example, one might buy a Louis Vuitton bag because the brand is popular among his peers. Thus, luxury brands cultivate and feed the 'ambition' of people who have not yet managed to join the 'high society' they want, giving them a sense of purpose and hope, betting that they will give in to this category of shopping even if they have to sacrifice other things in order to upgrade their external image.