It’s Not All About Gen Z. Here’s How to Attract Millennial Clients.
For the millennial consumer, a brand’s ethos is just as critical as the luxury it purports to offer
Although Gen Z has controlled the narrative lately, millennials are quietly rewriting the rules of luxury with money to spend and evolving priorities on where to spend it. The modern millennial buyer goes beyond just owning designer handbags and high-end watches. For them, true luxury is found in unique customer experiences, culinary adventures and travel, shaking up the luxury industry and pushing brands to evolve and cater to their changing desires.
Fifty-four percent of Millennials reported spending on luxury experiences in the past year. A larger portion—63%—chose to invest in luxury goods. Looking ahead, 51% of Millennials anticipate spending more on high-end products, in stark contrast to Gen Xers (67%) and Boomers (80%), who plan to reduce such purchases.
Uncover how millennial purchases are shifting and the surprising forces behind their next-level luxury spending habits.
Longevity and Practically Take Center Stage
The allure of luxury goods is rooted in the enduring quality and utility of the product. This discerning demographic places a premium on items that stand the test of time, both in terms of style and functionality.
Wealthy Millennials are balancing luxury experiences and goods, with 54% spending on experiences and 63% splurging on brands like Gucci, Louis Vuitton and Prada. In jewelry, Buccellati, Cartier and even Pandora dominate, while luxury watches from Breitling, Patek Philippe, Rolex and Panerai lead the way. They are looking for investments rather than purchases—goods that serve a purpose and remain relevant over the years. It’s no longer sufficient to dazzle with aesthetics alone; there is a growing demand for craftsmanship that promises durability and practical benefits.
Their affinity for big-name brands aligns with their priorities—70% value making a good impression, and 54% enjoy showcasing their wealth. However, there’s a split in their approach: while they love flaunting success, 74% say they prefer a more understated lifestyle, similar to Gen Xers and Boomers.
Environmental and Social Impact Considerations
The millennial generation is at the forefront of a pivotal shift, emphasizing the importance of a brand’s environmental and social footprints. They lean towards brands that manifest a genuine commitment to sustainability, go beyond mere compliance and embed ethical sourcing and fair practices into their DNA.
Environmental sustainability is a top priority for millennials, with about six in 10 feeling anxious about climate change. They believe both governments and businesses should take greater action, with 63% willing to pay more for sustainable products and 42% changing or planning to change jobs due to climate concerns. Nearly half are pressuring their employers to act on climate change, and 24% have reduced their ties with businesses they view as unsustainable.
It’s an expectation for luxury brands to lead with innovation in sustainability, showcasing how high-end products can be both exquisite and eco-conscious.
Integrity of Brand Values
For the millennial consumer, a brand’s ethos is just as critical as the luxury it purports to offer. This generation is adept at discerning authenticity and aligning their purchasing power with brands that speak to their aesthetic preferences and resonate with their ethical and moral principles.
Millennials are reshaping the luxury market, with 39% of American millennials saying their friends have the biggest influence on their purchasing decisions, more than brands or celebrities. Unlike previous generations, 36% of millennials prioritize buying what resonates with them over brand loyalty. They are drawn to luxury brands that tell new stories aligned with their values—ones that are inclusive, personalized and authentic.
The call for transparency has never been louder, with millennials demanding to know the journey behind their luxury purchases—from sourcing materials to treating workers involved in the production process.
Through the lens of the millennial buyer, luxury is redefined as an experience enriching not only in the quality and craftsmanship of the product but also in the positive impact it has on the world. The alignment of a brand’s values with those of millennials is not just preferred but expected, laying down a new blueprint for what it means to be a luxury brand in the modern age.
Are you ready to elevate your luxury brand with the talent that understands the pulse of the modern market? At The Bowerman Group, we specialize in a curated, brand-focused approach to recruiting. Our roots are deep within the premium and luxury sectors, giving us unparalleled insights into what makes a candidate truly stand out.
Trust us to bring you the talent that resonates with the millennial buyer and beyond. Connect with us now.