Millennials feel more positive about their personal finances than older consumers and spend more on luxury goods, a new report has revealed.
According to a survey by investment and financial company UBS – which involved more than 3,000 consumers across China, the US, France and Italy born between 1981 and 1997 – 46 percent of US millennials believed that their financial situation would improve in the next 12 months, compared to only 36 percent of older consumers. Similar trends could be seen in France, Italy and China.
In the report published Friday, UBS said that millennials drove 85 percent of growth in the luxury market last year.
UBS estimated that in 2017, millennials contributed 65 percent of Saint Laurent’s revenues and 50 percent of Gucci’s.
Gucci and Louis Vuitton emerged as the top brands for millennials, with the highest amount of likes per post on social media. 23 per cent of respondents in France, Italy and the US mentioned Gucci as their favourite, while 19 per cent chose Louis Vuitton. Meanwhile, Hermès rose to the top as the most preferred label in China for both millennial and older consumers, followed by Chanel, Cartier, Gucci and Dior.
When it comes to luxury purchases, US millennials said they prioritise brand name and craftsmanship, while their Chinese and European counterparts consider celebrity endorsements and brand social media activity more highly.