Here’s a headline you probably didn’t expect to see: Luxury brands should hope that adult children continue to live with parents. That’s right, mom and dad, forget about the empty nest. Louis Vuitton and Cartier benefit when the children stay home. And we daresay there are probably a few parents, and kids, who really don’t want to cooperate.
A recent Morgan Stanley analysis posits that “children” between the ages of 18-29 are fueling luxury goods sales. Saving on rent (and perhaps food as well) leaves disposable income to spend on top brand items, including handbags.
According to the US Census, nearly half of adults 18-29 are now living with their parents. This is the highest it’s been since 1940. The data is similar in the UK.
Of course, you never know what will happen when these young adults eventually move out. On the one hand, the desire for luxury products could diminish, as other costs, like shelter and food, take over one’s financial resources. Conversely, however, the love of top brand designer goods may persist and even grow.
What do you think? Let us know.
Image courtesy: pewresearch.org.