Gen Z & Millennials’ Luxury Spending Priorities
Published 15 May 2023
By 2030, Gen Zers and Alphas are expected to account for a third of luxury consumers worldwide, with some entering the market aged as young as 15. During 2023, experts predict a 21% rise in luxury sales, partly attributed to millennials and Gen Zers’ increased spending. We share two habits driving purchases.
- Indulgent Budgets: A record number of young adults in the US and the UK live with their parents, which may be propelling luxury spending. Opting for a multigen lifestyle allows these youngsters in full-time employment to splurge on luxury goods and experiences, such as cars, handbags, watches, travel, and sports memberships. But indulgence is not the only driver of young people’s luxury spending: this cohort sees luxury fashion and accessories as a lucrative investment while stock markets are failing.
- Pre-Owned Preferences: Nearly a third of American Gen Zers choose second-hand goods to be able to afford high-end brands, and 64% prefer buying second-hand items to purchasing new ones (ThredUp, 2023). Meanwhile, China’s Gen Zers account for more than 65% of the country’s second-hand consumption (Jing Daily, 2023). Younger generations believe they can lower their environmental impact by snapping up pre-owned apparel, with 11% of shoppers on British-Portuguese luxury retail platform Farfetch saying they have bought a pre-owned item to reduce their environmental impact (Farfetch, 2022).
Again, resale markets are viewed as an investment opportunity. Youngsters are especially on the lookout for archival fashion, watches, jewellery and handbags due to their stable or increasing value. Resale platforms, such as Break Archive (London), Arbitrage NYC (New York), Studded Petals Vintage (UK) and Plum (China), play into this cohort’s preferences by focusing on vintage pieces from a specific range of designers.