Tomorrow’s Luxury: A Look at Affluent Gen Yers

Last Friday, I attended the annual L2 Generation Next conference in NYC. It showcased a diverse, enthusiastic mashup of speakers to discuss the state of luxury — from a 15-year-old fashion blogger to seasoned branding professionals. Speakers explored subjects from health to making love not porn to gaming and fashion. Among the line-up, Sterling Lanier, President of the market research consultancy Chatter, piqued my interest for his incredible market insights. Sterling provided a glimpse into the psychology of tomorrow’s affluent buyers based on his research of upper-class Gen Yers. Here are several of his insights:

Investing in Timelessness
To Gen Y, luxury is an investment. As such, luxury products should be timeless. Not in the way Boomers consider luxury timeless. Unlike its generational counterparts, Gen Y is less concerned with heritage than exceptional quality. Heritage brands, such as Mercedes, might find it difficult to market its spot in history to turn on Gen Y. Instead, luxury brands need to dial-up the longevity, both in quality and style, of its products to make their brand a long-term investment.

“Rational Exuberance”
To justify buying a $10,000 watch or spending $15,000 on a Four Seasons beach getaway, Gen Y rationalize indulgence spending. “I work really hard, and I need to invest in myself,” is the typical rationale for affluent Gen Yers. Sterling also found affluent Gen Yers to be very creative in their rationalization. Luxury brands can take this as a cue to make that “rational leap” for the Gen Y consumer by creating “investment stories.” Answer the question: why does Gen Y deserve this product. This will help them bridge the gap and feel better about spending exorbitant amount of money on themselves.

Equal Opportunity Buyers
In Sterling’s study, he asked affluent Gen Yers to create a collage of luxury brands that represent their parents and themselves. The brand balance was off-kilter to say the least. Only a handful of brands populated their Boomer parents section and their side of the collage was inundated with similar brands, but many, many more of them. This disparity suggests affluent Gen Yers seek more niche brands. Their closets are a mashup of Louis Vutton handbags, D&G belts, Gucci trousers, Armani suits and Dior perfume.

For Gen Y, there is a different brand for nearly every luxury item. The rise of niche luxury questions product expansion opportunities. Are affluent Gen Yers that fall head-over-heels for Empirio Armani suits likely to stay at the brand’s new resort hotel in Dubai? Sterling’s research suggests the fashion brand name will have little effect on Gen Y’s hotel preferences.

All in the Details
The majority, or 2/3 of affluent Gen Yers thrive on “the secret handshake.” In other words, they seek exclusivity by purchasing luxury items only those that are “in the know” would know. It’s about being a member of an esoteric, secret society. A recent study of luxury handbags, featured in Psychology Today, suggests once the price exceeds $300, the logo size is reduced. Indeed, in one of Sterling’s audience testimonials, a Gen Yer said he purchases shirts from a Scottish designer with around three small stores in Europe. With only a small colored tag to identify the designer, he gets gratification seeing others wear the Scottish brand.

Love of the Deal
Part of justifying a purchase is knowing you obtained it through the best deal possible. Sterling found affluent Gen Yers to thrive on deals. In fact, discount luxury providers, such…

To read more about Gen Y & luxury, go to Sparxoo, a digital marketing, branding and business development blog.

About the Author

Sparxoo is a business blog that inspires breakthrough by tomorrow’s leaders. We are a strategy consulting firm with a pulse on marketing, branding, and development.

【BANG】 ☆Mabushii Natsu☆ ~Third Generation Irasshai~ intro

NexTrend 3rd Generation Clear Garlic Twist $12.56 Prepare perfectly minced garlic with the 3rd generation garlic twist from NexTrend. This handy kitchen tool is perfect for garlic, ginger, shallots, peppers, and more! Simply put your garlic inside, twist back and forth, and remove your perfectly minced garlic in seconds without wasting any in the process. The cross-cutting pieces easily mince without smashing what’s inside. This device has been t…

Purcell – King Arthur / Les Arts Florissants · Christie [Highlights] $16.98 …

Die Meistersinger Third Act $31.05 …

Fredaines The Phil Abraham Trio includes the leader on Trombone, Frederic Favarel, Guitar, & Heim Van de Geyn on Bass. (11) selections including LES GENS SIMPLES, PICK YOURSELF UP, LES CHOSES DE LA VIE, WALKIN’ TIP-TOE, JEANNE ET LOUISE, SAINT-THOMAS, ANOTHER WAY, SCOOT, HERE’S THAT RAINY DAY, BOTH WORLDS & LUCKY THIRDS….

Schrade Viper 4034 Third Generation Out the Front Assisted Opening Stainless Steel Double Edged Spear Point Blade Knife $39.99 3.50 in. 4034 stainless steel blade. 5.30 in. aluminum handle. Out the front assisted opening side safety blade lock finger actuator glass breaker aluminum handle pocket clip….

Schrade Viper 4034 Third Generation Out the Front Assisted Opening Stainless Steel Double Edged Spear Point Knife, Black Blade $38.85 3.50 in. 4034 stainless steel blade. 5.30 in. aluminum handle. Out the front assisted opening side safety blade lock finger actuator glass breaker aluminum handle pocket clip….