What Luxury Products Are Millennials Actually Buying?

Millennial research, Millennial insight, Millennial marketing, Gen Z research, Gen Z marketing, Gen Z insight, youth research, youth marketing

We asked Millennials what luxury products they’re actually buying. Find out where they’re allocating their spending power…

Yesterday, we told you about the luxury brands Millennials most want to own. And while their answers give us insight into their aspirational purchases—and into what brands are staying relevant—what they’re actually buying today tells a bit of a different story.

Traditional luxury stores and brands are striking out with young consumers. In 2016, the global luxury market shrunk for the first time since 2009, according to CNBC, and Forbes predicts that 2017 is not expected to fare much better. A recent brand equity poll shows Nordstrom is losing favor with Millennials as they skip luxury department stores for off-price options, and MediaPost reported that while the full-price store’s sales showed a 2.8% drop from 2016, discount chain Nordstrom Rack’s sales spiked 2.4%. In other words, Millennials like their premium products, but not at a premium price: a recent Ypulse monthly survey found that 60% of 18-35-year-olds say they’d prefer to buy products that are a “good value for the money” and 33% would prefer things that are “premium but affordable,” versus 5% who prefer to buy “top quality.”

This gets at the heart of the issue for Millennials: it’s all about their bottom line, and their values. According to Forbes, the biggest problem with the luxury market is that today’s consumers “look at what the luxury brands offer and see that they are heavy on marketing, but light on authentic values that really mean something to them personally and in their current lifestyle. While this is giving whole new industries the chance to be considered luxury, it’s also creating an atmosphere where luxury is in the eye of the beholder. All of which begs the question: what kinds of…

 
 

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Quote of the Day: “[It’s Always Sunny in Philadelphia is] my favorite satirical/dark comedy for the past 12 seasons and it hasn't dipped in quality since.”—Male, 21, NY

Nike’s new store puts mobile use at the center of the experience. Using geo-fencing, Nike knows when a customer walks into their 68,000 square foot space and changes the app accordingly. Users can see tailored content and offers, book styling appointments on-site, scan mannequins to have product delivered to their dressing room, and more. Based on the success of similar stores in L.A. and Shanghai, Nike execs hope their new flagship will build up Nike’s Brandom, and drive app downloads in the process. (Ad Age)

Jell-O is rolling out edible slime kits. Their Unicorn and Monster kits cash in on the slime trend, which has been booming in the anxiety economy for at least three years. Elmer’s, Cra-Z-Art, and Nickelodeon were all quick to tap the trend for marketing and products while Jell-O is a little late to the party. But considering that 82% of teens told Ypulse last year that they’ve participated in at least one trending activity to relax, there might still be time to capitalize. (Vox)

BuzzFeed is getting into the retail game, with plans to open family-focused stores across the country, starting in NYC. The brick-and-mortar venture, called Camp, will sell toys and apparel to Millennial parents and their kids, and the first is scheduled to open in time to capture some holiday spending. The concept is copying Story by changing up products and experiences every eight to 12 weeks, because, “we want to deliver adventure every time they come to the store.” (Ad Age)

Pharma companies are using influencers for social media marketing. Wego is a platform that connects patients with social media followings to pharmaceutical companies for marketing activations, like posts about drugs and devices. One company at least has seen success using the approach: Sunovian's earned media impressions surged from fewer than 100,000 to more than 13.2 million after working with Wego. The biggest caveats to that cashflow could be abiding by FDA regulations and contending with “a myriad of ethical issues." (STAT)

Eighty-five percent of Millennials have purchased a product after viewing a branded videoThat’s nearly 10% higher than the adult average for the U.S, U.K., and Australia, according to Brightcove. In addition, 56% ranked videos as more engaging than any other marketing materials and 46% said its their favorite form of brand communication. They're also seeking Shoppable content: 30% said they're interested in videos containing purchase links. (Marketing Charts)

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