Millennials: Their Current and Future Need for Luxury
The Shullman Research Center recently conducted a qualitative research study in collaboration with The Luxury Marketing Council of Connecticut–Hudson Valley with the purpose of laying the foundation for a better and deeper understanding of Millennials’ luxury-related passions, values, and buying habits in significant luxury markets, with a focus on the eastern United States. This study included both an exploratory survey of 46 respondents and a focus group discussion with five accomplished Millennials. It concentrated on the following two topics:
- How Millennials describe luxury
- Their current and future need for luxury products and services
When this key demographic describes the word “luxury” in such negative terms as “expensive” and “unnecessary,” luxury marketers had better pay close attention. And when those descriptions come from Millennials, how does that impact future prospects for the luxury goods and services marketplace?
This challenge is even more daunting given that most respondents in this exploratory study, when asked about their need for luxuries, answered that they don’t need them. There were a few exceptions, and some respondents cited “quality” and “exclusive” as positive attributes of luxury. In addition, Chanel, Hermès, and Rolls-Royce were all mentioned as recognized luxury brands, so there is at least some name brand awareness. That said, however, the overall lukewarm interest in luxury is a clear warning shot across the bow of the luxury world, and its implications call for innovative approaches to making a case for luxury among Millennials… or that case may well be closed.
The following nine exhibits are included in this month’s Insights brief:
- Key words used by Millennials to describe luxury
- Representative responses from Millennials to describe luxury
- Millennials’ number one luxury brand
- Millennials’ views of their “need” for luxuries
- Responses of Millennials about why they “definitely” need luxuries
- Representative responses of Millennials about why they “probably” need luxuries
- Representative responses of Millennials about why they “probably do not need” luxuries
- Representative responses of Millennials about why they “definitely do not need” luxuries
- Selected insights from five Millennials about luxury and their lifestyles