Last Tuesday, in Milan, Boston Consulting and Altagamma presented True Luxury Global Consumer Insight, which highlighted that in 2018, the world’s 425 million high-end consumers spent around 920 billion Euros.
As the research shows, future transactions will be driven by Millennials and the Chinese, and will reach 1.3 thousand billions by 2025 (with an annual growth rate of 4-5%), while consumers will increase up to 500 millions.
Important evidence shows that experiential luxury (hotels, restaurants, wines and liqueurs) is growing more and at a faster rate than personal luxury (clothing, accessories, jewels, watches, perfumes and cosmetics). While the former resulted to be worth 590 billions with a 5% increase from 2017, the latter’s 330 billions went up by 3% only.
New generation consumers are thus looking for different buying experiences.
The Boston Consulting Group expects millennials to account for 50% of the personal luxury market by the crucial threshold of 2025, while 40% of high-range luxury will be hold by the Chinese.
Gen Z’s quotations are rising too. Although it currently wields only a small 4% of luxury, it will grow by four to five percentage points a year by 2025. Businesses are consequently working to rapidly grasp its taste and language.
Younger generations represent the most rewarding consumer segment for collaborations between luxury brands and the street wear reality: 67% of Gen Z buys their collections, while the overall data does not exceed 50%.
This trend encouraged Boston Consulting’s analysts to place these collaborations at the top of the modern trends chart, with second-hand businesses ranking second.
The research examined the behavior of 18.5 million top consumers’. Despite being 4% of the total, they spent 278 billion Euros, equaling almost a third of the overall spending.