Does the future of luxury goods depend upon teenagers? Apparently yes, according to a recent Bain & Co. report which states that lux buyers are getting both younger and wealthier. And, these “kids” perceive value in designer items, whether influenced by family or social media.
Bain expects that by 2030 (only seven years from now), Millennials (aka Gen Y), Gen Z, and Gen Alpha (those currently under 13) will account for 80% of global purchases. Spending by Gen Z (born between mid-1990s and mid-00s) and Gen Alpha is expected to be nearly a third of the luxury market by 2030. Indeed, these consumers already are buying or hoping to purchase designer products, at a much younger age than prior generations.
“This is, in part, driven by a more precocious attitude towards luxury, with Gen Z consumers starting to buy luxury items some 3 to 5 years earlier than Millennials (at 15 years-old, versus at 18-20), and Gen Alpha expected to behave in a similar way.”
Handbags are among the most in demand luxury items. Bain expects growth in the sector, led by bags, to continue to grow between three and eight percent, based on current assumptions about China’s recovery and the U.S. and European economies.
So, tell us, do the teenagers in your life have the funds and/or appetite for designer goods? And if so, what are they buying?
What are your thoughts on this? Be sure to share with us.
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