Young consumers see luxury as more than a transaction, says report

Niche brands and quality goods that are artistic and unique are capturing
the interest of young luxury consumers.

In a white paper released by online lifestyle platform Highsnobiety, the
publication explores the priorities of the new luxury consumer that its
audience reflects.

“For us, the message is clear: consumer relationships with brands are no
longer purely transactional,” said Jian Deleon, editorial director
at Highsnobiety, New York. “They’re not just buying things, they’re buying
into value systems, lifestyles and products that help them define
themselves.”

The study, called The New Luxury, surveyed 4,984 16-34 year-old global
users and assembled a comparison panel of 2,379 people in the same age
group in the United States and United Kingdom. The majority of respondents,
73 percent, were male.

Eighty-five percent of respondents believe what their clothes represent is
as important as the quality and design. More than a third of those surveyed
have also purchased clothing, footwear or accessories that cost 500 dollars
and upwards in the last 12 months.

When it comes to defining the mindset and influencer, 84 percent of
respondents said they define themselves by their style and had 4.6 times as
many followers as the average Instagram user.

“New Luxury” isn’t just about what you wear, but also what you know,
according to the authors of the white paper. Creativity and commerce have
merged with like-minded communities around the globe. Selling out is no
longer seen as detrimental to authenticity, but what’s changed is more and
more outsiders want to ‘buy in’ to this burgeoning movement.

26 percent of users believe a product undiscovered by the masses is a
driver for desirability of a new luxury product.

“The why behind the buy”

“The new luxury consumer seeks inspiring brands over aspirational products.
Free from the once-captivating spell of opacity used by luxury brands to
attach a certain je ne sais quoi to their products, consumers began to hold
transparency in higher esteem. The young luxury consumer is hungry for a
deeper purpose in life over materialism.”

96 percent of Highsnobiety readers report an interest in traditional brands
who take unexpected created changes or collaborate in unexpected ways.

Blended retail experiences – from phone to pop-up to physical store to
laptop – is the new ‘phygital’ retail, allowing customers to discover and
purchase along their own journey and preferences. As long as the experience
between online and offline are seamlessly married.

Photo credit: Balenciaga sneakers, source: Highsnobiety; article source:
Highsnobiety white paper “The New Luxury”