While many expressed sticker shock at the price of the upcoming iPhone X (which will retail at a staggering $999), sales reports may tell a different story come October 27, when the device is available for pre-order.
Willingness to buy high ticket consumer goods and services is often associated with a considerably large wallet from baby boomers or gen X, though millennials are slowly but surely infiltrating the market, and it’s not necessarily because they have the disposable income to spend.
Recent survey research from Deloitte reveals the following about U.S. millennials:
- A little over half are interested in luxury items
- Roughly 2 in 5 have purchased 1-2 luxury items costing more than $500 in the last year
- The primary motivation for spending money in the luxury market is for personal gain
- 7 in 10 are willing to pay extra for customization
- Nearly half say they always make sure they purchase from brands that are sustainable & ethical
- Millennial consumers are split between the desire for a luxury analog watch and smartwatches, which is unique to the U.S. market
- Above all else, the high quality associated with luxury items is the primary purchase motivation
Not surprisingly, social media is the hub for discovering new luxury listings, and 47% prefer to purchase luxury items online, to be received via delivery to home or work. That being said, around 43% do prefer to shop in-store, as it allows for the hands-on experience prior to purchase.
For luxury brands looking to reach millennials, appealing to their “treat yourself” mentality is likely to work for this segment, along with personalized outreach and offerings. Furthermore, offering detail about the associated quality and sourcing of products is a promising tactic. And as always, building and maintaining a loyal community across social channels is encouraged.
Source: Deloitte
