According to the Shullman Research Center’s Luxury and Affluence Monthly Pulse, 18- to-33-year-old consumers are planning to buy the kinds of things that older people making a lot more are thinking of buying.
The study, which profiled three generations -- Millennials, Generation X (34 to 48 years old), and Baby Boomers (49 to 67 years old) -- found that Millennials making $75,000 or more have the same items on their lists as Boomers making $250,000 or more.
Millennials in the $75,000-plus segment over-index for taking a luxury vacation, buying premium beers or ales, buying premium cosmetics, buying or leasing a luxury vehicle, buying fine jewelry, and buying designer clothing or accessories. Gen Xers bringing $250,000 or more into their households are looking at the same items, while Baby Boomers are more attracted than the younger generations to plans to purchase luxury cruises, premium cosmetics, fine wines, premium liquors, and fine jewelry.
The firm’s study shows that 66% of Millennials making $75,000 or more plan to buy a luxury product in the next 12 months, versus 35% of Gen X and 44% of boomers in that earnings range. For those making $250,000 or more per year, 52% of Millennials plan to pick up a luxury product or experience in the next year; 72% of Gen Xers plan to do so; and 76% of Boomers say they will shell out for luxury.
For all luxury products and all cohorts, wealthier people (not surprisingly) plan to buy a lot more expensive
stuff. Seventy-six percent of them plan to buy premium goods and services over the next year, versus 47% of those making $75,000 or more and 34% of the entire population. For all consumers,
regardless of income, travel is the biggest draw. Twelve percent of all consumers plan to take a luxury vacation during the next year; so do 18% of people making $75,000 or more; 32% of those making
$250,000 or more and 44% of the wealthiest Americans plan a luxury jaunt, per the study.
"Rich Woman with Dog and Shopping Bag" photo from Shutterstock.