Loyalty schemes key to young wealthy consumers
High net-worth consumers who are 35 years of age and younger define luxury brands much more in terms of loyalty programmes and unique offers than do their older wealthy cohorts, according to a survey by the New York City-based Luxury Institute.
The 'Luxury Brand Marketing to Wealthy Millennials' survey found that Generation Y individuals (born in 1975 and later) are also much more likely to have made a luxury purchase in the past year than wealthy consumers aged 35 or over (83% compared to only 66%).
Apple, cited without prompting by 45% of wealthy millennials as a luxury brand, topped all other brands in the survey, followed by Rolex, Coach and BMW, each of which was cited by 30% of respondents as examples of luxury brands.
Only 5.2% cited the iconic Dom Perignon as a top-of-mind luxury brand, compared to 12% for those aged 35 or over. When asked about spirits, the most popular brand was the relatively young Grey Goose vodka.
"Wealthy millennials view luxury much more for the experiential factors associated with it, rather than relying on brand heritage or residual prestige earned long ago," said Milton Pedraza, CEO for the Luxury Institute.
"The good news for luxury firms is that these tech savvy shoppers want to interact with them, not only in stores but also online and through their mobile devices. This in turn builds richer experiences and deeper relationships," Pedraza concluded.