Read: 2256
Millennials and Generation Z Drive Luxury Market Growth, Reshape Industry Dynamics
By 2026, it is projected that Millennials and Generation Z will comprise approximately 75 of luxury goods buyersa significant transformation in the luxury landscape. Driven by younger consumers who are higher spers and have higher expectations for quality experiences, this shift is ushering in new trs such as the resale and rental of luxury items.
The latest findings from BCG and The Altagamma Foundation's True-Luxury Global Consumer Insight 2023 report highlight the growing influence of younger generations on the luxury goods industry. In 2022, they accounted for nearly €200 billion in sales, a number that is forecast to almost double by 2026. Notably, Millennials and Generation Z sp an additional 15 compared to other age groups, fueling the sector's growth.
Rising Resale and Rental Popularity
In tandem with this demographic shift, younger consumers are leading another emerging tr: the buying and renting of pre-owned luxury goods. In 2022, one-third of surveyed consumers purchased second-hand luxury items, marking an increase of 7 from 2020, while 22 opted for rental servicesa growth of 4 over two years. These trs are particularly pronounced among younger consumers; indeed, 35 of Millennials and Generation Z have bought second-hand luxury goods in the past year, with another 26 opting to rent.
Demand for Personalized Experiences
While younger consumers' appetite for luxury items is evident, their demands ext beyond just product quality. Despite efforts by luxury brands to improve in-store experiences, satisfaction among survey respondents remns below average. Only half 49 of those surveyed were truly satisfied with the customer experience they received, while a further 11 reported being underwhelmed.
According to Jo?l Hazan, Managing Director at BCG and Luxury Sector Expert, luxury brands must adapt by leveraging cutting-edge technologies such as generativeand Web3 for ultra-personalized experiences. These tools are crucial in addressing the expectations of digital-native audiences who value immersive experiences. A case study from China showcases their effectiveness; there, technological advancements in this field have resulted in high satisfaction rates among luxury buyersonly 13 reported being underwhelmed by their online shopping experience.
Strengthening Global Luxury Market
The international luxury market is experiencing robust growth, expected to reach €1.3 trillion by 2026 with an annual growth rate of 6 from 2022 onwards. This expansion underscores the ongoing vitality and relevance of the sector as it continues to evolve.
In summary, Millennials and Generation Z are driving significant changes within the luxury goods industry. By embracing new trs like resale and rental, and demanding personalized experiences across all channels, these consumers are reshaping how luxury brands operate and innovate. As the industry adapts to meet their evolving preferences, it is poised for continued growth amidst a dynamic global landscape.
Copyright ? 2024 AFP-Relaxnews. All Rights Reserved.
TAGS: FASHION LUXURY FASHION LUXURY INDUSTRY
This article is reproduced from: https://ww.fashionnetwork.com/news/Millennials-and-generation-z-are-a-driving-force-in-the-luxury-goods-market,1539076.html
Please indicate when reprinting from: https://www.g056.com/Luxury_prices/Millennials_and_Generation_Z_reshape_luxury_market_growth.html
Luxury Market Millennials Growth Drivers Resale Rental Trend in Luxury Goods Younger Generations Spending Patterns Personalized Experiences for Digital Natives Global Expansion of Luxury Industry Insights Evolution of Luxury Consumer Expectations