LUXONOMY Report: Luxury Consumer Behavior by Generation: Millennials vs. Gen Z vs. Baby Boomers

This report analyzes how Millennials, Generation Z, and Baby Boomers interact with luxury brands, identifying key patterns, influences, and differences in their approaches to consuming premium products and experiences. As generations evolve, so do their expectations of brands, forcing companies to constantly adapt to remain relevant and competitive in a globalized market.

1. Millennials (Born between 1981 and 1996)

General Profile

Millennials represent a technologically advanced generation, marked by significant events such as the economic recession of 2008 and a shift towards more sustainable values and meaningful experiences. They constitute an important part of the luxury market, with increasing purchasing power as they advance in their professional careers. Additionally, they have been a pioneering generation in adopting new technologies and exploring digital platforms that redefine the way they interact with brands.

Purchase Motivations

Product Experiences: They prefer to spend on luxury experiences such as exclusive travels, gourmet dinners, and unique events, rather than on physical products that do not always create the same emotional impact.
Sustainability: They are highly interested in brands that adopt sustainable and responsible practices, demanding transparency in the supply chain.
Personalization: They seek products and services that reflect their identity and style. Brands that manage to connect with their personal values are more likely to gain their loyalty.

Buying Behavior

Digital First: Conduct thorough online research before making a purchase, using social media and reviews as key points of information. They also rely on price comparison tools and user opinions.
Emerging Brands: They appreciate independent and emerging luxury brands that offer something unique, moving away from traditional options that they find too “mainstream”.
Influence of Social Media: They follow luxury influencers on Instagram, TikTok, and YouTube, who directly influence their purchasing decisions. These platforms act as digital showcases for the products they are interested in.

Consumption Examples

Luxury smartwatches like the TAG Heuer Connected, which combine functionality and design.
Fashion collaborations with a focus on streetwear, such as Gucci x Adidas, that appeal to their sense of exclusivity and contemporary style.
Trips to remote and sustainable destinations, such as resorts in the Maldives or luxury safaris in Africa.

2. Generation Z (Born between 1997 and 2012)

General Profile

Generation Z represents the next great wave of luxury consumers. Although many are still in their formative years, they have a significant impact due to their cultural influence and their innate connection to technology. They grew up in a digitalized world, making them experts at identifying trends and demanding authenticity from brands.

Purchase Motivations

Individuality and Authenticity: They value brands that promote diversity and inclusion, and seek products that allow them to express their identity. They are not interested in consuming luxury solely for status, but for the meaning it brings.
Technology and Innovation: They prefer technologically advanced products and quickly adopt new digital platforms. They are attracted to immersive experiences and personalized solutions through technology.
Radical Sustainability: They not only expect sustainability, they demand it, seeking transparency and real actions from brands. They want brands that back their commitments with clear environmental initiatives.

Buying Behavior

Driven by TikTok: TikTok is one of the leading platforms where users discover and connect with luxury brands. For instance, Gucci has utilized TikTok to launch viral challenges like the “#GucciModelChallenge,” which invited users to recreate styles inspired by the brand using their own clothing. This strategy not only boosted user-generated content but also allowed Gucci to reach millions of viewers in a short period. The challenge generated over 250 million views, positioning the brand as one of the most relevant among Generation Z on this platform. Short, creative videos have a disproportionate impact on their decisions.
Prefer Rentals and Resale: Instead of buying new items, they actively participate in circular economies, such as renting luxury bags or purchasing secondhand clothing through platforms like Vestiaire Collective.
Virtual Purchases: They are interested in virtual goods and experiences in the metaverse, such as digital clothing from luxury brands that they can wear on virtual platforms and video games.