This is no longer the case; on the contrary, younger generations are now turning to high-end, and even very high-end, items in growing numbers.
That’s one of the findings of the latest report released by payment services company Klarna: Gen Zers (63%) and millennials (63%) purchased more luxury items than their elders (45% for Gen Xers and 25% for baby boomers) in the past 12 months.
With the pandemic, luxury brands have understood the importance of accelerating their transition to digital – something that has become essential given their customers increasingly comprise members of younger generations.
Titled “The State of Smooth: Unpacking Luxury in 2022”, the report reveals that eight out of 10 luxury consumers see a brand’s commitment to innovation and new technologies as a key purchasing criterion, and more than a third favour mobile apps to make a luxury purchase online.
From social networks to the metaverse
“A new generation of younger, digitally savvy luxury shoppers is emerging, with new preferences towards how they shop and pay,” said David Sykes of Klarna.
“While the allure of brand names (52%) and exclusivity (39%) still drive luxury purchases, today’s high-end shoppers are looking for greater flexibility and innovation throughout their shopping experiences.”
Faced with these ever-younger consumers, luxury brands should not neglect their presence on social networks, either.
More than eight out of 10 Gen Z consumers (83%) and nearly two-thirds of millennials say they follow luxury brands on social networks.
And almost as many, respectively 75% and 63%, say they have purchased something after discovering a product on a social network, with YouTube and TikTok in the lead.
The rush of big fashion houses into the metaverse is not likely to reverse the trend. More than six out of 10 respondents who have already heard of the metaverse say they are interested in purchasing luxury goods via this new channel.
Generally speaking, there is a growing interest among consumers for new technologies, including virtual fitting rooms that allow them to test products without having to leave their couch (22%).
Luxury, a symbol of sustainability?
Between quality, artisanal techniques, and local circuits, can luxury not in fact quite easily embrace sustainability?
This seems to be the opinion of those who turn to so-called high-end products today.
Nearly six out of 10 respondents (59%) say their luxury purchases are more sustainable, and more than four out of 10 consider that it even offers long-term savings because of the quality of the products, with Gen Z in particular having a “buy-less, buy-better” mindset.