UBS, an investment bank and financial services company, has just published a survey on personal spending on millennials in luxury goods. Majority of them have a positive opinion of their personal finances and plan to spend more in luxury products.
Millennials: The World’s Luxury Growth Engine in 2017
UBS surveyed 3,000 people across the United States, France, Italy and China. The survey allowed to analyze the personal expenditure of millennials on luxury goods. The results showed that millennials are significantly more optimistic about their personal finances. They plan to spend more on products in luxury, unlike people aged 35 and over.
Nearly 50% of Millennials expect an improvement in their personal financial situation over the next 12 months, compared with 35% of consumers over age 35 or older. The disparity is greater in France, where nearly 60% of millennials think that their incomes will increase in the near future, against 30% of the older generations. As for the Chinese, millennial consumers and older consumers are very optimistic with 70% against 65%.
The majority of luxury fashion brands recorded a high percentage of Generation Y sales, which drove 85% of the sector’s growth last year. For example, UBS estimates that Saint Laurent’s revenues come from 65% of this age group in 2017, while Gucci’s millennial sales were estimated at 50%. According to UBS, Louis Vuitton made about 33% of its profits to consumers aged 21 to 37 years.
Gucci et Louis Vuitton are the most popular brands among millennials
Gucci and Louis Vuitton are the most popular brands among millennials with 23% of respondents in France, Italy and the United States who mentioned Gucci as a favorite brand, while 19% chose Louis Vuitton. These results are consistent with previous research by UBS, which found that both brands get the most “likes” by publishing on social media.
In France, Gucci and Louis Vuitton are followed by Alexander McQueen, Rolex and Hugo Boss, while in Italy, millennials ranked Prada, Rolex and Bulgari third, fourth and fifth respectively.
The preferences of older consumers differ slightly. In France, Hermès, Hugo Boss and Chanel are the top three brands consumed by consumers aged 35 and over, while Rolex, Gucci and Prada scored the top three places in Italy.
In China, where Millennials devote an average of 20% of their discretionary income to the purchase of luxury goods, young consumers have the same tastes as previous generations. The five largest luxury fashion brands in China, identical for both groups, are composed of Hermes, Chanel, Cartier, Gucci and Dior.
However, the study indicates that Generation Y places less importance on brand prestige than previous generations, with social networking and celebrity sponsorship appearing to be more important factors in their purchases in Europe and China. . Young Americans, on the other hand, are less likely to be influenced by celebrities or social networks, placing a higher value on brand names and crafts.
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