Millennials Next Wave of Luxury Spenders

Millennials with incomes over $100,000 are the next group to target according to George Scribner, senior vice president, people planning, at advertising firm Digitas, during a program on "Affluence in America ­— The New Consumerism Landscape," held by the Luxury Marketing Council and as reported by WWD Media. The findings were based on data from the Mendelsohn Affluent Survey and the Mendelsohn Affluent Barometer.

The study indicated that millennials—defined as those between 18 and 35 who already have annual household income between $100,000 and $199,000—have the greatest chance of hitting the $200,000 mark. And they are purchasing name luxury brands from Armani to Gucci.

Digitas says that, in the U.S., affluence requires a minimum of $200,000 in annual household income.

Scribner said that while millennials constitute only about 12 percent of the consumer base, they should be the group to go after due to their potential future earnings capabilities.

Those 35 and up with incomes under $200,000, dubbed "aspiring consumers," compose up 70 percent of the population and work primarily in service-related occupations. "They’re back to being middle class [and the] younger [Baby] Boomers are squeezed by the recession, with many now thinking about their retirement," said Scribner.

Boomers, WWD said, "prefer brands such as Seiko and Lee Jeans, while younger Generation X consumers favor Gap, Diesel, Cover Girl and Nicole Miller.

"The remaining three groups covered, making up the remaining 18 percent of the population, are the affluent, defined as having incomes of $200,000 to under $500,000; the wealthy, at $500,000 to under $1 million, and the rich, with $1 million-plus. The affluent, those largely employed in software design, advertising and public relations, are buying Missoni, Elie Tahari, Burberry and Marc Jacobs. The wealthy, core C-level executives and business owners, said favorite brands include Chopard, Ermenegildo Zegna, Hermès, Armani and Thomas Pink. The rich prefer Hermès and Bergdorf Goodman."

 

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