Millennials strike it rich and head toward the stores
The new wave of luxury shoppers: millennials with incomes more than $100,000, reported WWD.
George Scribner, senior vice president, people planning, at advertising company Digitas, presented the results of two studies during a program on “Affluence in America—The New Consumerism Landscape.” Held in early July by the Luxury Marketing Council, the affair presented findings from the Mendelsohn Affluent Survey and the Mendelsohn Affluent Barometer.
The study results suggest that emerging millennials – defined as individuals between 18 and 35 with an annual household income from $100,000 to $199,000 – are the group most likely to reach an income of $200,000 or higher. With this money comes high-end taste. Topping their list of brand preferences are Armani, Cartier, Gucci, Mercedes, Diesel, Sephora and Marc Jacobs.
Affluence in the United States calls for at least $200,000 in annual household income, reported Digitas.
According to Scribner, millennials will be the most critical market to pursue. While the group represents only 12 percent of the consumer base, they are forecasted to hit high levels of wealth over the next ten years or so.
“Aspiring consumers” – individuals aged 35 and greater with income under $200,000 – comprise 70 percent of the population and are mostly employed in service-related positions.
“They’re back to being middle class [and the] younger [Baby] Boomers are squeezed by the recession, with many now thinking about their retirement,” Scribner said to WWD.
Popular brands for Boomers include Seiko and Lee Jeans, whereas Generation X shoppers gravitate toward Gap, Diesel, Cover Girl and Nicole Miller.
The remaining 18 percent of consumers are grouped into the affluent, those with incomes of $200,000 to under $500,000; the wealthy, those from $500,000 up to $1 million; and the rich, those who pull in a $1 million or more.
Mostly working in the fields of software design, advertising and public relations, the affluent favor Missoni, Elie Tahari, Burberry and Marc Jacobs. The wealthy, primarily core C-level executives and business owners, report their favorite brands labels are Chopard, Ermenegildo Zegna, Hermès, Armani and Thomas Pink, while the rich give preference to Hermès and Bergdorf Goodman.
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