US millennials (those aged 21 to 34) spend the least but are the most common luxury shoppers during the holidays, according to an October 2015 report from US marketing research firm Shullman Research Center.
Using data from 1,690 survey respondents, the research revealed that although millennials make up less than a third of all active consumers, they account for 57% of luxury holiday shoppers. Gen X (aged 35 to 50) and boomers (aged 51 to 69) comprise 19% and 22% respectively.
- Less Money, More Luxury: Although millennials are the generation most likely to purchase luxury goods, they earn the least. Of all luxury shoppers, 58% of millennials have an annual income of less that $75,000, compared with 36% of Gen X and 30% of boomers. Millennials also spend less, each paying an average amount of $1,250 for luxury goods, as opposed to the $1,700 spent by boomers and $2,650 by Gen X.
- Tech-Reliant: Millennials are most likely to use their mobile phones or tablet devices in the luxury shopping process. They also refer to recommendations on social media more than other generations. As a result, brands should consider ways to reach these consumers via digital platforms.
- Lavish Males: Men are more likely to shop for luxury goods than women. This is particularly apparent among boomers, whereas the gap narrows among millennials and Gen X, with a divide of 56% male and 44% female for both these groups.
For more strategies to connect with young affluent consumers, see Luxury Changes Gear and Luxury Online for Millennials.