For Many Millennial Women, Luxury=Brand Name

Wealthiest the most likely to see it that way

Author: Monica Melton

August 24, 2017

How do millennial women define luxury? A lot of it depends on how much money they have.

A July 2017 study commissioned by the Diamond Producers Association and conducted by KRC Research found that wealthier millennial women are the least likely to consider the cost of an item as defining “luxury.”

Rather, they are most likely to consider “authenticity” the defining attribute. And, perhaps on a related note, they were also the most likely to see brand names as a defining attribute of a luxury item.

For the lowest earners, those who reported household incomes of less than $25,000, cost and the uniqueness of an item were most likely to determine if it was luxury.

“An appetite for luxury goods doesn't necessarily correlate with level of affluence,” said eMarketer analyst Krista Garcia. “That might explain why lower income women equate cost with luxury more than higher income women—because these goods are more aspirational to them and cost plays a big part of that.”

While the wealthiest millennial women in the survey most likely to see brand names as signifier of luxury, women across the entire income spectrum women were fairly likely to agree.

Garcia noted that the identification of brand names with luxury has been an opportunity for luxury brands to take advantage of millennials’ shifting preferences. “Brands like Karl Lagerfeld or Armani to capitalize on their name through extensions into hotels, restaurants and apartments because many millennials are valuing experiences over goods,” said Garcia. 

Photo by Emanuel Feruzi on Unsplash