Generation Y Demands Luxury At A Bargain Price
The baby boomer generation born between 1946 and 1964 has been the economic equivalent of a 2000 pound gorilla for at least the past 30 years. Their needs, interests, and tastes have dictated what products and services came on the market. Technological engineers and designers have strived to meet their needs as this generation grew older and luxury brands courted them with vacations in Hawaii and the smooth ride of a full sized luxury automobile. Now as many boomers reach a plateau on their career track or contemplate retirement many of their big purchases have been made. A new generation is now emerging to drive the luxury market.
Gen Y Consumers
Consumers born between 1977 and 1994, collectively known as generation Y, are becoming the leading taste setters in the luxury brand market. Generation Y is set to soon eclipse the baby boomer generation in spending power. Currently accounting for more than $200 billion in annual spending, twenty and thirty-somethings are fast becoming the style setters and marketing target of luxury manufacturers. As baby boomers prepare for retirement this generation is moving into high-paying careers and flexing their economic muscle by declaring their love of all things luxury.
Men and women of this generation maintain entirely different ideas of which brands represent the ultimate in style and sophistication. Women look to style, jewelry, and luxury travel with names like Marc Jacob, Cartier, and Four Seasons. Men are of an almost singular mind, relating the pinnacle of prestige to fast stylish automobiles. Names like Ferrari, Porsche, Aston Martin, and Lamborghini dominate their top 10 list.
Men and women do agree however on which brands they plan to buy and which brands they hate. Apple ranks first among both men and women as their next most likely luxury purchase. The Trump brand ranks as the most universally despised brand of this generation. The Donald, it turns out, is the veritable icon of everything this group loves to hate.
An Era of Influence
Growing up in an age of exploding choices in everything from wallpaper to wine, this group has become very loyal to brands they trust with 65% of Gen-Y women and 61% of men describing themselves as brand conscious. 60% of younger women, in the 13-24 age group would even go so far as to call their favorite store a friend.
While not necessarily big on buying generic brands to cut down on expenses they are not above getting a bargain and make use of social networking to scoop a deal. Half of all Gen-Y consumers are on email lists of prestige brands but in turn only a third actually purchase items on a brand’s website. Over half of female consumers in this group made purchases from discount sites like aggregator sites and flash sale sites like Groupon.
Generation Y’s mantra seems to be Champaign taste on a beer drinkers budget.