The Millennial approach to shopping is apparently contagious. According to a survey conducted by e-commerce site Farfetch.com and Bain & Co., the global consulting firm, revealed that Millennials’ shopping habits have spread to other generations — especially Generation X and Baby Boomers.
The survey questioned 2,000 U.S. online shoppers to gauge the current climate of luxury spending. The research found that Millennials will comprise of approximately 40 percent of the global luxury goods market by 2025. But their approach has informed the purchasing patterns of other generations as well. “The characteristics of Millennial behavior are already seeping through to older generations — which accounted for 73 percent of luxury purchases in 2016,” the report said.
The report characterized Millennial behavior as having several components, one of which is that the demographics’ need for approval by digital followers prior to purchasing is on the rise, the study concluded. A sense of urgency also permeates this mind-set, oftentimes with a demand for near-immediate delivery. “Consumers now expect brands to align with their personal values and passions,” the report said.
Digital influence within the luxury category is also rising, the report suggested. “Today, 70 percent of luxury purchases are influenced by online interactions, which means at least one digital interaction has taken place with the brand or the product before those purchases,” researchers in the report said. This suggests the need for luxury brands to up their social strategies to maximize digital opportunities.
Retailers and brands in the segment also need to market in the venues where their present — and future — patrons are researching and perusing. According to the report, 14 percent of respondents between the ages of 18 and 24 bought their first luxury product online. What’s more, digital traffic was double the amount of traffic than the bricks-and-mortar counterparts.
This isn’t to say that physical store locations are becoming obsolete, despite a rash of retailers shuttering doors. The report predicts that luxury stores will continue to play an integral role in business, securing 75 percent of purchases in-store by 2025.
The report portrays a luxury market rich with opportunities. But it requires retailers and brands to devise a short- and long-term digital strategy to begin unifying messaging via traditional marketing as well as roll out new initiatives to appeal to the burgeoning behemoth of the Millennial generation.
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