2017千禧一代奢侈品用户购买行为报告（英文版）

Blingiton

Whatmakesamillennialspendmore?

Contents

Reachingtomorrow’spremiumconsumers01

Findingsataglance02

Lessonsandstrategies04

Themillennialcore06

Themillennialmindset10

Infuenceandthepurchasedecision12

Thebuyingmoment14

Howandwheremillennialsbuy16

Personalisationandexperience20

Puttingapriceonsustainability22

Howstrongispremiumbrandloyalty?25

Thesurveyscope30

Blingiton|Whatmakesamillennialspendmore?

Newresearchshowsthecomplexityofthemillennialconsumermindsetwhenitcomestobuyingluxuryandpremiumproducts

Reachingtomorrow’spremiumconsumers

Whoarethepremiumcustomersoftomorrow?Howdocompaniesreachthem,

infuencethem,retainthem?

Todaythetopsegmentsoftheluxuryandpremiumconsumer

marketsarestilldominatedbyBaby-BoomerandGenerationX

buyers–individualswhowerebornbetweentheendoftheSecondWorldWarthroughto1980.Thispost-wargenerationmayhave

adoptedsomeoftheonlinespendingpatternsofthegeneration

thatfollowed,buttheyalsoretainconsumptionhabitsthatwere

formedinanearlierage:theyarebrand-loyal,theyvaluetraditionalstorebuyingandpersonalcontact,andtheyrespondtotraditionalbrandmessaging.Theyaremodernbutrooted.

Howevertheyarebecomingsupplantedbyanewgeneration,

themuch-talkedabout“millennials”.AccordingtotheUSCensusBureau,thenumberofmillennialsintheUSnowexceedsthe

numberofBaby-Boomers1.Millennialsmostlygrewupintheinternetera:theirassumptions,theirsocialpatternsand(some

of)theirvaluesarediferent.Theyarealreadyaninfuentialand

growingsegmentofthepremiumconsumermarket.Buttheywillsoonbecomethedominantsegmentofthatmarket.

Companiesthatseektosucceedinpremiummarketsneedtounderstandthismillennialsegmentofconsumers.Toreach

themandconvertthemintopremiumcustomerstheyneedto

Inearly2017,wecommissionedaresearchstudyofmillennialconsumersinfourkeymarkets–theUS,UK,ItalyandChina(representingabalanceoftheworld’slargestmarketsforpremiumandluxurygoodsintheUS

andChina,andtwooftheworld’slargestproducersofthesegoods,intheUKandItaly).Thereisnoaccepteddefnitionofthemillennialage

group,althoughmanyconsiderittobethosebornbetween1980and

2000.Forthepurposesofthisstudywelookedatthecurrent20-30yearoldcohort,bornbetween1986and1996–agenerationoldenoughtohaveenteredworkandformedconsumptionhabits,butyoungenoughtohavemostoftheireconomiclifebeforethemandbarelyrememberapre-digitalworld.Thestudylookedatresponsesfromover1,000

individuals,answeringquestionsdesignedtoteaseoutsomeofthecomplexitiesofthenewconsumermindset.

knowwhatmotivatesthem,whatinfuencesthem,andhowtheyinfuenceothers.

1

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01

Blingiton|Whatmakesamillennialspendmore?

Findingsataglance

Luxuryspendingis

focussedontheself.

Inoursurveyrespondentsfromallfourgeographiesweremostlikelytosay

thattheyboughtluxurytopleasethemselves,nottoimpressothersortodowhatinfuencers

orcelebritiessaidtheyshoulddo.

Whatarethemainreasonsyouarewillingtospendmoneyonhigh-endfashionorluxuryitems?

19.7%

Iliketotreatmyself

18.0%

Theyareofhighquality

Millennialshear

messagesfrom

multiplechannels

simultaneously.

Millennialsinclinedtopurchaseluxurysay

theyfndinformation

fromtraditionalsourcessuchasmagazines,

throughtovideos,websitesandblogs.

Howdoyoufindoutaboutthelatest

high-endfashionorluxuryitemtrends?

14.4%

Fashionmagazines

20.5%

Socialmedia

15.1%

Abrand’swebsite

Millennialluxury

buyingisnotroutine;thepatternofregular

buyingisgivingwaytoamuchmorefragmentedandimpulsivesetof

buyingbehaviours.

Whendoyoutendtoconsiderpurchasingahigh-endfashionorluxuryitem?

20.5%

Foraparticularoccasion(e.g.wedding,party,etc)

18.5%

WhenIwanttotreatmyself

02

Morethanhalfofall

millennialssurveyedstillliketobuyinstore,butthereasonsforthisaredifferent.

Blingiton|Whatmakesamillennialspendmore?

whatdoyouthinkarethemainbenefitsofshoppinginstorewhenyou'relookingtobuyhighendfashionorluxuryitems?

25.6%

Cantouch/feeltheproducts

24.2%

Cantryproducts

Qualityisking–it’sthesinglemostimportantattractortoabrand.

whatONEthingmostdrawsyoutoaluxurybrand?

39.1%

Qualityproducts

Inearly2017Deloitte

commissionedaresearchstudyofmillennial

consumersinfourkeymarkets,theUS,UK,ItalyandChina.

1,005

Totalrespondents

across

geographies

230+

Average

respondentspergeography

c.30%

Spenderson

luxuryproducts

20–30

years

Averageageofrespondents

03

Blingiton|Whatmakesamillennialspendmore?

Lessonsandstrategies

Oursurveyofluxury-buyingmillennialsshowsthatthiscriticalgroupofpremium

productconsumerspresentsentirelynewchallengesforbrandcompaniesintermsofcommunicationandcustomerretention.

Thegreatchallengeforbrandownersseekingtocapturethe

afliationsofmillennialsishowtocommunicatetoageneration

withshiftingpreferencesandloosebrandloyalties,andforwhom

nosinglechannelappearstobesignifcant.Yetamidthisapparent

uncertainty,theonefactorthatplaysaroleinalmosteveryaspectofmillennialconsumptionistheriseofonline.

Onlinesalesalonedonotcapturethefullsignifcanceoftherise

ofonlineinteraction.Thesurveyshowsthatateverypointintheinteractionbetweenbrandcompaniesandconsumers,theonlinecomponentisgrowing.Consumersmaybuyinstore,buttheywillhavecomparedproductsandpricesonlinebeforedoingso.Theymaycitemultiplesourcesofinformationadvice,butmostofthem

willhavebeenmediatedonline,throughsocialmedia,blogsandv-logs.Onlinehasalsoempoweredchallengerbrandsthatare

makinginroadsintopremiumandluxurymarkets,byloweringthebarrierstoentryanddemonstratingthathighvaluepurchaseswill

bemadeonlineiftheonlineoferisattractiveenough.

Ifbrandcompaniesdonotownorshareefectiveonlinemodes

ofcommunication,informationandsale,theyarelikelytohavetobuythem,byacquiringbrandsorplatforms.Itwasoncethought

thatluxuryandonlinesellingweremutuallyincompatible.Thatisnolongerthecase.Net-a-Porterisnowroutinelysellingwatches

pricedatover$100,000online,includingthroughmobileapps,andtheriseofevenmoredisruptiveluxurybusinessmodels,suchas

Farfetchcontinuetopioneernewoferings.

Themillennialmindsetisself-directed.Millennials

aremorelikelytobuyforthemselvesthantoimpress

others.Theyhearwhatinfuencerssaybutmaynot

followthem.

Millennialsareinformation-rich,butthereisno

preferredchannelofinformationandinfuence.

Millennialssaytheymakebuyingdecisionsbasedoninformationfrommultiplesources,traditionalmagazines,tovideos,websitesandblogs.

Marketsdifer:thereisnoglobalmillennialsolution

whenitcomestobrandmessages.Socialmedia

isthemostimportantcommunicationchannelformostmarkets,butnotinChina.Experienceand

personalisationisimportant,particularlyintheUS.

Levelsofbrandloyaltyalsodifermarketbymarket.The

morematurethemarket,thelessbrandloyalmillennials

arelikelytobe.

Sustainabilityandethicsarenotparticularlystrong

infuencersformillennialluxurybuyers.Ahigh

propensitytopayasustainabilitypremiumformost

productsdoesnotapplytoluxuryinthesamewayasitdoesinmassproducts.

Qualityanduniquenessarethemostimportantfactorsindrawingmillennialconsumerstoluxuryproducts.

Heritageandaspirationalqualitiesarelessimportant.

04

Blingiton|Whatmakesamillennialspendmore?

Thegreatchallengeforbrandownersseekingtocapturethe

afliationsofmillennialsishowtocommunicatetoageneration

withshiftingpreferencesandloosebrandloyalties,andforwhom

nosinglechannelappearstopredominate.Yetamidthisapparent

uncertainty,theonefactorthatplaysaroleinalmosteveryaspectofmillennialconsumptionistheriseofonline.

Theemergenceofmillennialpatternsofpurchaseand

communicationidentifedinthissurveypresentsastructural

challengetopremiumbrandcompanies.Theprimacyofthe

premiumstore,withitstangibleexperiencesandpersonal

contact,isgivingwaytosomethingratherlessstructuredand

morecomplextomanage.Companieshavetomeetthestructural

challengewithstructuralchange:itisinevitablethatthismeans

inorganicgrowthstrategies,andtheintegrationofverynewmodesofinteractionbetweenthecompanyandthecustomer.Todate,

theM&Afowinpremiumandluxuryproductshasconcentrated

onconsolidationandverticalsupplychains.WeexpectthatthecomingwaveofM&AandJVswillconcentrateontechnologyandcommunicationdesignedtowinthemillennialconsumer.

ItisalsothecasethatforpremiumproductcompaniesM&A

andjointventuresaretheclearestroutetocapturingmillennialconsumers.Forexample,inpersonalcareestablishedcompanieslikeL’Oréal,EstéeLauderandCotyhavebeencontinuously

acquiringindependentchallengerbrandsthathavegrown

throughtheuseofonlineinfuencers,socialsellinganduser

generatedcontent.Butonlinepresenceandinfuencetaketime

andinvestmenttobuild.Facedwiththegrowthofonlineluxurycommerceatthehighestendofthemarket,togetherwiththe

appearanceofonlinenicheandindiedisruptorsandthelikely

lossofsomemarketsharetothesenewbrands,acquisitions

areincreasinglyseenasthemostreliablesourceofgrowthfor

premiumbrandcompanies.InvestorsalsoliketheM&Astrategy:sharepricesthatwereformerlycloselycorrelatedtolike-for-likesales(ameasurethatexcludestheimpactofacquisitions)are

nowequallylikelytorespondtomarketsharegrowththroughacquisitiontoorganictop-linegrowth.

However,M&Aandjointventuringarealsothestrategiesofchoiceforbrandsthatneedtoboltonanonlineortechnologycomponent

thattheylack.ArecentpersonalcareJVthathaselectrifedthe

premiumcosmeticsmarketisCharlotteTilbury’sMagicMirror,anin-storevirtualrealityexperiencedeliveredthroughajointventurewithvirtualrealitystudioHolitionthathasstolenamarchoncompetitors’app-baseddigitaltry-outapproaches,whiletheacquisitionof

amajorityshareinNet-a-PorterbyRichemontoncesetanew

precedentforluxury’smigrationtoonlineselling,notwithstanding

thesubsequentdevelopmentssincethemergerwithYoox.

05

Blingiton|Whatmakesamillennialspendmore?

Themillennialcore

Unlikethegenerationsthatprecededthem,millennialsarenotnecessarilyricherthantheirparentswereatthatage.Theircostsarehigher,coststhatmaynotbematchedbyrealincomegrowth.Forexample,theFederalReserve’smostrecentSurveyof

ConsumerFinances1foundthattheaveragenetworthofUSmillennials(defnedasthosebetween18and35)wasonly$10,400.Forthosebetween20and30,averagenetworthvariedbetween$2,093andminus$38,915accordingtoage(mostofthatdebtwascollegedebt).

Butincome-basedconsumersegmentationmaynotbethebest

waytoproflethemillennialconsumer.Recentresearchbythe

DemandInstitute2suggeststhatwithinthemillennialsegment

thereisaverysignifcantpopulationofwealthyindividuals

andfamiliesthataredistinguishedbyadistinctiveconsumer

mindsetandpropensityforbrandengagement–consumersthat

outspendotherconsumersinavarietyofcategories.Thesearetheconsumersthatpremiumproductcompaniesneedtoidentify

andinfuence.Theytendtobeyoungerandmoreurbanthan

otherconsumers;theyhavehigherdisposableincomeandboththeabilityandthepropensitytospendonhigherpriced,higher

marginproducts.

Theresearchwepresentinthispaperisdesignedtocapturethecharacteristicsofthemillennialsegmentofthisconsumergroup.Thesearetheconsumersthatbrandcompanieshavetoengageiftheyaretosucceedinluxuryandconsumermarkets;thesearetheconsumersthatestablishedbrandsneedtoretainiftheyaretomaintainmarketshareandmarginsinthefaceofthethreat

posedbychallengerbrands.

Theytendtobeyounger

andmoreurbanthanotherconsumers;theyhavehigher

disposableincomeandboththeabilityandthepropensitytospendonhigherpriced,

highermarginproducts.

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06

07

Blingiton|Whatmakesamillennialspendmore?

Riseofthe‘digitalnative’

Whatisaluxuryproduct?Although‘luxury’isoneofthemost

abusedwordsintheEnglishlanguage,italsoremainsoneofthemostpowerful.Wetreatluxuryasabroadcategory,ranging

fromhighluxurylikehigh-endhandbags,watchesandjewellerytopremiumbrandsacrossothercategoriesthatsharestore

spacewithutilityproducts(e.g.homeware).Theonethingthatiscommontoalloftheseproductsisthatpricedoesnotdirectlyrefectfunction.Thesearetheproductsthatattracttheworld’shighestspendingconsumers,andaccountforthehighestproftmarginsofalltheworld’sbrandedgoods.

Butthisisacategorythathasfacedheadwindsinrecentyears.TheslowdownoftheChineseeconomy(ChinaandtheUSare

theworld’sbiggestluxurymarkets)andtheimpactofterrorismontravel-relatedspendingdepressedluxurysalesgrowthin

2016–althoughencouraginggrowthhasrevisitedthesector

inthefrsttwoquartersof2017.Alsosignifcanthasbeen

thegrowthofchallengerbrands,oftenbrandswiththekind

ofonlinemarketingcapacitythatisnotnativetotraditional

luxurybrands.Injewellery,fashion-drivenchallengerslikeDanaRebeccaandShayJewelryareattackingestablishedstore-basedincumbents.Inmechanicalwatches,newlow-to-midpriced

manufacturerslikecrowd-fundedMarloeande-commerce

basedFarerandChristopherWardaretakingsalesfrombetterknownandhigherpricedSwisswatchmakers.Therearesimilarstoriesinbeauty,fashion,technology,andaccessories.

Oneprimeexampleofthelinkbetweenmillennialconsumption

andcommunicationpatternsandtheriseofchallengerbrandscanbefoundinthepremiumpersonalcareindustry.Hereahostof

‘digitalnative’start-upsareshakingupastaiddepartment-store

basedindustry(e.g.GlossierandTooCoolforSchool).Cyclical

innovationinestablishedpersonalcarebrandsandarelativelylowrateofcategorycreationhavegivenwaytosuddeninnovationbychallengerbrands.Theoldmodelofmaximumcategorypresence–being‘everythingtoeveryone’withintheircategoryboundariesisbreakingdownasthemarketbecomesmorefragmentedand

asconsumersandinfuencersoperateapick-and-mixapproachtoproducts,brandsandcategories.Relianceon‘above-the-line’advertisingonthehighstreetandintraditionalprintmedia,andthepersuasivepowerofin-storebeautyconsultants,isgiving

waytoamuchmoreamorphousmarketingenvironmentwhichembracesonlineopinionsharing,andratingandinfuencingfromadiversegroupofproductauthoritieswhocreateaconversation

betweenbrandsandpotentialcustomersthroughsocial

multimedia,withInstagramnowseentobethemostinfuentialsocialchannelforluxurybrands.

Whatlinksthesechangestogetheristhattheyaredrivenby

millennialconsumptionandcommunicationpatterns–online,informedbysocialmedia,andveryliabletoswitchbrands.

Itisnoaccidentthatmostsuccessfulchallengerbrandsintheindustry(brandssuchasthosementionedabove,togetherwithotherslikeCharlotteTilbury)havetheirrootsindigitaland/orsocialmediamarketingaimedatmillennialconsumers.

08

Blingiton|Whatmakesamillennialspendmore?

Howinterestedareyouinhigh-endfashionorluxuryitems(soanitemthatisnotdeemedtobeanecessity)?

Overview

Wetreatluxuryasabroadcategory,rangingfromhighluxurylikewatchesand

36.8%

63.2%

yachtstopremiumbrandsthatsharestorespacewithutilityproducts…Thesearetheproductsthatattract

SlightlyinterestedVeryinterested

theworld’shighestspendingconsumers,andaccountfor

Italy

China

thehighestproftmarginsofall

44.3%

31.0%

theworld’sbrandedgoods.

55.7%

Wherearethosehighspendingmillennials?

69.0%

Oursurveyofmillennialsinclinedtoluxuryspendingfound

thatconsumersintheUKandChinaweremostlikelytobe‘veryinterested’insuchspending,andthattheseconsumerswere

US

UK

morelikelytobewomenthanmen.

Nowtherearesignsthatmoreestablishedbrandsarebeginningtofghtback.Accordingtothelatestglobalmarketforecast

fromtheItalianluxurymanufacturersassociationFondazioneAltagamma1,theworldmarketforluxuryissettogrowbetween2-4percentthisyear,withastrongrecoveryindomestic

spendinginChinaandfastergrowingEuropeaneconomiesalsounderpinninggrowth.

Signifcantly,mostgrowthisforecastinomnichannelretailthat

integratesonlineandstoreselling.Theomnichannelspaceis

wherehigh-spendingmillennialsarefound–drawinginfuence

anddatafromonlinecomparisonandreviewsources,buying

instorewhentheyneedtotouchandfeeltheproductaswell

asseeingitonscreen,buyingandre-orderingonlinewhen

conveniencedictates.Developingchannelsofcommunicationandinfuencewiththisconsumersegmentisthekeytocapturingthenewwaveofgrowthinluxuryandpremiumspending.

45.0%

55.0%

29.2%

70.8%

SlightlyinterestedVeryinterested

Malevfemale

219

416

165

205

Slightlyinterested

Veryinterested

MaleFemale

1

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Alsosignifcantisthehighvaluegiventoabrand’swebsiteinall

fourgeographies,andthehighvaluegiventotheperceptionthatluxurygoodsarelong-lived.

Intermsofgeographicaldiference,Chinaisthemarketwhere

consumersaremarkedlymorelikelytovaluehavingthelatest

product(thisresultmayrefectthefactthatChineseproduct

marketsaremarkedbyveryrapidversionturnoverofstylesandstock;Chineseconsumersfrequentlysaythattheyprefertobuyanattractiveproductassoonastheyseeit).1

Italy

Overview

02%51%

China

44%

.

.

7.2%

1.4%

18.7%

2.7%

7.5%

15.6%

17.8%

5.4%

16.4%

9.7%

14.9%

13.7%

10.3%

11.6%

17.8%

19.8%

US

UK

0.8%

0.1%

7.7%

6.2%

4.2%

3.5%

16.3%

3.1%

2.6%19.0%

3.5%

4.8%

17.1%

18%

`

12.3%

14.0%

12.3%

13.3%

21.4%

19.7%

IliketohavethelatestproductsIliketoimpressfriends/family/colleaguesItmakesmefeelgoodItmakesmelookgoodIliketotreatmyself

TheywilllastalongtimeTheyareofhighqualityLuxurybrandsaremoreethicalIaminspiredbycelebrities/infuencersOther

Blingiton|Whatmakesamillennialspendmore?

Millennialsbuyforthemselves,notforothers

Luxuryspendingisfocusedontheself.Inoursurveyrespondentsfromallfour

geographiesweremostlikelytosaythattheyboughtluxurytopleasethemselves,

nottoimpressothersortodowhatinfuencersorcelebritiessaidtheyshoulddo.

‘Iliketotreatmyself’and‘itmakesmefeelgood’weretogetherthemostcommonreasonsforbuying.Impressingfriendsandfamily

scoredlow,andfollowinginfuencersscoredevenlower.Theneed

toimpresswastheonlycategorywheremenweremorelikely

thanwomentocitethisasamotivation:thegenderdiference

appearstobethatwomenaremorelikelytobuyforthemselves,tolookandfeelgood,whilemenaremorelikelytoengagein

giftbuying,andtoimpressothers.Andinnogeographywasthe

perceptionthatluxurybrandsare‘moreethical’signifcant.

Themillennialmotivation

Whatarethemainreasonsyouarewillingtospendmoneyonhigh-endfashionorluxuryitems?

.

4.1%8.8%

2.6%

18.0%

16.7%

12.6%

12.1%

19.7%

Iliketohavethe

latestproducts

Iliketoimpressfriends/

family/colleagues

Itmakesmefeelgood

Itmakesmelookgood

Iliketotreatmyself

Theywilllastalongtime

Theyareofhighquality

Luxurybrandsare

moreethical

Iaminspiredby

celebrities/infuencers

Other

0100200300400500

MaleFemale

5.2%

1

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10

Blingiton|Whatmakesamillennialspendmore?

TheChinesetraveller-shopper

Chinesebuyersaccountformoreluxurybuyingthananyothercountry,andmostofthatspendinghasbeenoutsideofChina.InourestimatesChineseconsumersaccountfor30%-35%of

globalluxurysales(theUSconsumerbaseaccountsforc.25%ofthemarket,andEuropeanc.20%),yetonly7-10%ofluxurysalesaremadeinChina.

Overthelasttwoyears,thetrendhasbeenformoreChinese

luxurybuyingtotakeplaceinChina(relativelyspeaking).The

UK,HongKong,SingaporeandJapanallsawaverageChinese

tourismexpenditurefallin2016.1TerrorisminEuropehas

dampenedChinesedemandinEuropeancapitals–Parisand

LondonareprimedestinationsforChinesetravellingshoppers.Atthesametime,theChineseauthoritieshaveclampeddownonproxyshoppingabroad–theso-called‘daigou’personal

shopperswhobringbackluxurygoodsformainlandcustomers;severalluxurybrandshavealsoharmonisedtheirChineseanddomesticprices,removingthediscountthatChinesetraveller-shoppersformerlyfoundwhenshoppingabroad.

Chineseconsumersaccountfor30-35%ofgloballuxury

sales(theUSaccountsfor

c.25%ofthemarket,and

Europec.20%),yetonly7-10%ofluxurysalesaremadein

China.

11

1

/average-chinese-tourist

-spending-is-declining-but-its-not-all-bad-news/

Thelessonisthatbrandownerscannotafordtoconcentrateononeortwochannelsofinformationandinfuence:tocapturethe

attentionoftheirtargetsegmenttheyhavetoworkharder,onmultiplefronts.

Socialmediaisthemostcitedinformationchannelinall

geographiesexceptChina,wherebrandandfashionwebsitesaremoreimportantthanelsewhere.However,thesemajoritiesareslimandthekeyaspecthereissimplythefactthatmillennialshavea

verybalancedrangeofinfuences.

14.0%

Italy

0.4%8.4%

China

6.8%

17.6%

10.8%

13.4%

3.9%

6.6%

8.5%

13.7%

10.5%

15.0%

18.3%

14.2%

21.5%

16.4%

US

UK

0.4%

1.2%

12.4%

14.3%

12.7%

12.3%

3.3%

2.6%

10.8%

13.0%

15.7%

12.4%

`

10.0%

8.5%

12.5%

13.0%

21.8%

23.1%

FashionmagazinesCatwalkvideosAbrand’swebsiteFashionwebsites

SocialmediaBlogs/vlogsCelebrities.Friends/familyOther

Blingiton|Whatmakesamillennialspendmore?

Millennialshearmessagesfrommultiplechannels,simultaneously

Infuenceandthepurchasedecision

Theproliferationofsourcesofinformationandinfuencersisrefectedintheresponsestooursurvey:millennialsinclinedtopurchaseluxurysaytheyfndinformationonluxury

itemsfromtraditionalsourcessuchasmagazines,tovideos,websitesandblogs.

However,whenrespondentswereaskedtocitethesinglemost

importantinfuenceonpurchasedecisionsoutofthreechoices,signifcantdiferencesbetweengeographiesemerge.Thebrandremainskinginallgeographies,whiletheinfuenceoffriends

emergesasalmostasimportantintheUS.InChina,millennials

citedtheinfuenceofcelebritiesalmostasfrequentlyasthebrand.

Theinluencers

HowdoyoufindoutabouttheIatesthigh-endfashionorIuxuryitemtrends?

Overview

0.5%

14.4%

10.3%

4.5%

15.1%

8.9%

20.5%

Fashionmagazines CatwalkvideosAbrand’swebsiteFashionwebsites Socialmedia Blogs/vlogsCelebrities

Friends/familyOther

0100200300400500

MaleFemale

11.9%

13.9%

12

Blingiton|Whatmakesamillennialspendmore?

whichONEWouIdhavethegreatestinfiuenceonyourdecision?

Overview

26.9%

46.1%

Afriendyouadmire

Thebrand

Yourfavouritecelebrityorinfuencer

050100150200250300

MaleFemale

27.1%

Italy

China

27.0%

53.2%

19.8%

19.2%

36.0%

44.8%

23.8%

38.5%

37.7%

US

AfriendyouadmireThebrand

UK

21.8%

30.2%

48.0%

Yourfavouritecelebrityorinfuencer

Socialmediaisthemostcitedinformationchannelinall

geographiesexceptChina,wherebrandandfashionwebsitesaremoreimportantthanelsewhere.

13

Blingiton|Whatmakesamillennialspendmore?

Impulseandoccasiondrivemillennialluxurybuying

Millennialluxurybuyingisnotroutine;thepatternofregularbuyingisgivingwaytoamuchmorefragmentedandimpulsivesetofbuyingbehaviours.

Millennialssaytheyaremostlikelytobuywhentheyreceiveextraincome(suchasabonus),foranoccasionsuchasaweddingor

party,foratreat,orforreplacementofanolderluxurypossession.

Althoughtherearediferencesbygeography,theyarenotgreat.

Thepatternofbuyingappearstobeaglobalpattern.

Thelessonforbrandcompaniesisthatregularconsistentluxurybuyingcannotbereliedupon;companiesneedtoidentifythe

triggersthatmotivatetheircustomersandmouldtheirmarket

oferaroundthem.Thatthesetriggersareexceptionallyimportant

isshownbytheverysmallproportionofrespondentsgloballywhosaythattheybuyluxuryat‘noparticulartime’.

Purchasetriggers

Whendoyoutendtoconsiderpurchasingahigh-endfashionorluxuryitem?

Overview

0.4%

13.4%

3.8%

18.5%

6.1%3.7%

10.1%

20.5%

11.3%

4.7%

Afterreceivingabonus

WhenIwantto

treatmyself

Whenanolderluxury

WhenI'mfeeling

Other

0100200300400500

MaleFemale

ontopofmyusualsalary

Afterseeing

friendswithit

Afterseeingmy

favouritecelebrity/

infuencerwithit

DuringFashionWeek

Foraparticularoccasion

(e.g.wedding,party,etc)

NoparticulartimeOnpayday

itemneedsreplacing

abitlow

7.5%

0.