DDT studied our spending habits on luxury goods

- gentleman's Weekly -

New media brands from the perspective of Finance

Fashion, business, Interviews, Stylish

DDT, one of the four biggest accounting firms, recently released a report on millennials' spending habits on luxury goods.

In the report, Bling It On, DDT surveyed more than 1000 consumers from the United States, Britain, Italy and China, aged between 20~30 years.

What's interesting is that as a luxury consuming country, China's consumer spending accounts for 30~35% of global luxury consumption, but only 7~10% of consumer behavior occurs in china. According to DDT released "global luxury power" report, Chinese and the French market, different brands of products from 20% to more than 70% price range, the highest premium watches and jewelry, with the lowest premium package. In other words, luxury watches and jewelry bought in China may be 70% more expensive than france!

By investigating millennials, DDT reached the following conclusions.

One

High-end experiential consumption is more attractive than luxury goods

Millennials prefer experience spending, with 53% of millennials choosing high-end experience as a gift, not luxury, with enough budget.

In the United States and Britain and other relatively mature luxury market, 66% of millennials will make the choice, and in China this proportion was only 34%, the market all women are more inclined to choose the consumer experience.

Two

Chinese consumers pay more attention to eco friendly than European consumers

While millennials are considered environmentally conscious consumers, the report says environmental costs are not a factor they pay attention to when buying luxury goods. Subjects with 50~75% say they rarely consider brand friendliness and morality before buying.

Consumers may think that luxury consumption has a much smaller impact on the environment or community than daily consumption, because such consumption does not happen very often. Consumers from the United States and China are more likely to consider eco-friendly brands than European consumers.

Three

Instagram has become the most influential social channels

More respondents (20.5%) received new luxury and trends through social media, with 15.1% of consumers through the brand's official website and 14.4% of consumers through magazines. The subjects said that although social media accounts for a large proportion, they would synthesize information from multiple sources to make purchase decisions.

This is not good news for the luxury brand: to obtain information through various media, which means not the brand loyalty of the millennial generation is too high, because of social media is change rapidly, they are less affected by public opinion, more follow their own preferences to buy products.

The report said: "the street billboards, print media advertising, shop sales consultant, these marketing methods have been difficult to change the millennial generation idea, they pay more attention to online reviews through social media share share, rating of the product information, Instagram has been regarded as the most luxury brands the influence of social channels. "

DDT's "global power report" 2016 luxury, four key factors driving the growth of the luxury goods, is the "wind" "soil" and "water" and "fire": the "wind" and "soil" refers to the travel and wealth; "fire" and "soil" are millennials and digital.

By lowering the threshold, technology has opened new avenues for the revival of the luxury market. Social media platforms, fashion bloggers and network Reds are able to get very little exposure to small brands that have never been known in a short time, and become the favorite brand of the "Millennium generation" brand.

At the 2017 spring summer fashion week, 58 million people created 398 million of Instagram interaction. Share information through the Instagram Instagirl, is SNS times the queen of fashion, some of the most popular: Kendall Jenner, Gigi Hadid and Bella Hadid, in addition to board the national version of "Vogue" cover, also in the show, advertising, gain a complete victory endorsement. Three followers in Instagram add up to more than 108 million 660 thousand. Another SNS favorite, Selena Gomez, has a picture of the highest point, over 5 million 900 thousand, and one person has 106 million 310 thousand followers. The number, the circulation of several traditional and fashionable magazines, can not be added up.

Four

Self-consciousness

So many luxury brands unexpectedly, family and friends or influence of opinion leaders on the recommendation of the millennial generation purchase decision is not much, when they buy more reason is that they think that products to make them feel good, the appearance is also very attractive. For millennials, luxury brands bring their own experience more convincing than the outside view.

Five

Spending power can not keep up, so consumption is not the law

Millennials don't buy luxury goods or experience products regularly or regularly. They are most likely to buy extra income or to take part in special events.

This unstable spending is partly due to insufficient spending power, and the Federal Reserve's latest survey of consumer wealth limits the $38915 to $2093 net worth of 20~30 millennials. (most of the debt comes from college loans.)

Most luxury brands do not target all millennials, but rather part of the millennials, who spend more on cities and on luxuries.

So, DDT's report, do you approve?

Related labels:

Luxury goods

fashion

U.S.A

Vogue

Global luxury power