The Luxury Survey

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Who They Are Born between 1980 and 2000, the millennial generation is the largest after the boomers (their parents), and, like their parents, millennials are poised to become the next great luxury consumers. Because they've grown up in the age of dotcom billionaires, wealth and success are a given. Although the luxury category might be new to them, they are learning quickly. (Information is just a click away.) This survey looks at older millennials—ages 18 to 27—as well as affluent boomers. Statistical analysis of millennials' and boomers' survey data identified four different segments within each generation, including two with consumers who are very interested in the luxury category: the core luxury millennials and the core luxury boomers. The data below focus on these two segments.

The Mind-Set of Millennials: How They Think About Luxury

Their income is lower than that of most boomers, yet core luxury millennials are much more psychologically engaged in luxury than their parents' generation. They not only have a more positive attitude toward high-end services and products but are also more interested in owning them—including cars, accessories and home-entertainment units. Percentages below represent those millennials who agree with the following statements:

I love wearing designer clothing, jewelry and watches (98%)

I prefer to buy luxury brands I know and trust (96%)

I work hard, so I reward myself by splurging (92%)

I love to look at advertisements for luxury goods (92%)

Looking stylish is important to feeling good about myself (93%)

What They Purchased in the Past Six Months Despite their lower income, core luxury millennials have purchased more luxury items in the recent past than their older counterparts. Sunglasses, wallets and small leather goods are much more likely to have been purchased by millennials than boomers

65% bought an average of six pairs of shoes

59% bought an average of two pairs of sunglasses

52% bought an average of seven purses or bags (including briefcases)

Midwest 19%

Northeast 25%

South 34%

West 22%

Where They Live

Both millennials and boomers are most likely to be from the South. But within the younger generation, core luxury millennials are disproportionately concentrated in the Northeast (25%, vs. 19% for all millennials)

Attributes

For apparel and accessories, quality is the top attribute named by both core groups, but millennials also rate fashion and reputation as key

High quality

MILLENNIALS 72%

BOOMERS 78%

High fashion

MILLENNIALS 70%

BOOMERS 52%

Good reputation

MILLENNIALS 57%

BOOMERS 49%

Giorgio Armani is one of the top brands named by core luxury millennials as a 'luxury brand'

On average, the most that millennials have paid for lingerie: $251

Boomers: $102

Where They Shop for Fashion And Accessories

Core millennials shop on the Internet more than boomers do; boomers still prefer department stores

High-end department store (such as Saks Fifth Avenue, Neiman Marcus or Nordstrom)

MILLENNIALS 50%

BOOMERS 56%

Internet

MILLENNIALS 52%

BOOMERS 26%

Outlet store

MILLENNIALS 31%

BOOMERS 20%

What Millennials Want to Own

With the exception of luxury travel, core millennials are more interested than core boomers in owning or using all luxury products and services asked about. For example, 54% of millennials want to own a yacht, whereas only 31% of boomers are interested in that purchase. Millennials are twice as likely to want to own a private jet or luxury sports equipment than boomers, which illustrates the fact that the luxury lifestyle is more important to them

Top Sources of Information for Millennials

Magazines are the most popular source of information about luxury for both core luxury millennials and boomers, but millennials also rely on word-of-mouth sources such as friends, family and online social networks

Magazines: 61%

Magazine websites: 34%

Catalogs: 53%

Friends: 50%

Family: 37%

Television: 49%

Retail stores: 47%

Online social networks: 26%

What They Spend on Beauty

Shampoo may be too retro for most millennials, but they maintain a healthy obsession with hair care, spending more than twice what core luxury boomers do on the category. And when purchasing beauty products, core millennials are more likely to track high-fashion trends and cutting-edge brands

Maximum ever spent by m's on HAIR CARE: $213

Maximum spent by boomers: $71

Maximum ever spent by m's on SKIN CARE: $226

Maximum spent by boomers: $124

Maximum ever spent by m's on FRAGRANCE: $226

Maximum spent by boomers: $178

Technology vs. Travel

Core luxury millennials are more likely than their boomer counterparts to associate tech products with luxury. Boomers tend to associate travel, real estate and spa experiences with luxury

Best-Known Brands

These are the brands that have the highest recognition factor among core luxury millennials and boomers. On average, millennials are less aware of most luxury brands, but they're highly aware of brands that target them specifically. Although brands like Diesel, Marc Jacobs, Juicy Couture and True Religion don't make the Top 10 list below, they score much higher with millennials on awareness

[This article contains a table. Please see hardcopy of magazine.]

Millennials Boomers Calvin Klein 84% 92% Gucci 83% 91% Tiffany & Co. 79% 94% Ralph Lauren 76% 91% Giorgio Armani 76% 91% DKNY 76% 79% Chanel 72% 91% Rolex 72% 92% Prada 70% 81% Coach 68% 74%

Brand Interest and Ownership

Core luxury millennials are less likely than their boomer counterparts to own most of the brands they were asked about, but their interest in owning specific luxury brands is on a par with or higher than that of boomers

WHAT THEY OWN: Calvin Klein 60% Ralph Lauren 53% DKNY 46% Coach 39% Gucci 35%

WHAT THEY WANT TO OWN: Rolex 45% Gucci 40% Tiffany & Co. 39% Giorgio Armani 38% Prada 38%