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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The Newsfeed

Quote of the Day: “[Animal Crossing Pocket Camp is] free to play, but it's loaded with a lot of content. It's super cute and relaxing.”—Female, 32, IL

PepsiCo needs to think small to compete with indie brands. Their new unit, The Hive, will be “a small entrepreneurial sort of agile group” to foster smaller brands and create new brands based on emerging trends. Unsurprisingly, The Hive is a response to consumers (ahem, Millennials) who are “demanding” healthier products and championing smaller labels. We continue to see big brands adopt startups, and startup thinking, as they navigate today’s competitive landscape. (Fortune)

Millennials and Gen Z are going to “extreme lengths” to share streaming passwords—and major platforms are losing millions. Magid research indicates that 35% of 21-35-year-olds and 42% of those younger than 21 share streaming service passwords, compared to 19% of Gen Xers and 13% of Boomers. One particularly amusing anecdote: the 20-something who uses the HBO Go login of a one-night stand from 2013. Though Netflix and HBO have both said that password sharing isn’t a problem, there’s no denying they are losing out on revenue—Hulu stakeholders estimated a loss of $1.5 billion yearly. (CNBC)

Wikipedia-branded streetwear has sold out. The site teamed up with LA streetwear brand Advisory Board Crystals for a “surprising” collaboration, and the resulting long sleeved tee emblazoned with “Internet Master” and Wikipedia’s puzzle logo was a success. All proceeds from sales were pledged to the Wikipedia Foundation, and the store is planning to restock “to make as large of a contribution as possible.” According to Ypulse Brandoms research, 60% of 13-35-year-olds say logos are back in style. (MashableThe Verge)

Fitbit’s new tracker is about more than just fitness. Though their smartwatch business is growing significantly faster than trackers, the brand “hasn’t given up” on their roots—and their newest model offers a range of features for wellness-focused users. While it, of course, tracks exercise and calorie burning, it also has built-in meditation, sleep tracking, and female health tracking. Since 96% of 18-34-year-olds tell Ypulse that taking care of their mental health is just as important as taking care of physical health, thinking beyond workouts could be a wise move. (Business Insider)

Amazon wants to steal away YouTube creators to bolster their own platform, Twitch. They’re reportedly offering multi-million dollar deals to influencers ranging from Gigi Gorgeous to Will Smith, hoping their large followings will follow them off of YouTube. So far, Twitch has 15 million daily users compared to YouTube’s 1.9 billion but Twitch’s SVP promises “a steady drumbeat of lots of new content.” They’re also reportedly looking to double their ad revenue in the next year, and their foothold on video games like Fortnite is sure to help. (Bloomberg)

Quote of the Day: "I love travel and finding the best deals on airfare. Hopper really helps me do that, in a simple format.”—Female, 22, FL

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