Dive Brief:
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Older millennials, 27 to 35 years-old, have boosted their spending to double that of younger ones, according to research from Forrester Data.
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Early this year, older millennials spent a median amount of $180 on a purchase, compared to $91 for younger members of that generation.
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Luxury goods are more within reach of older millennials, who are also demonstrating a taste for long-lasting, higher-quality goods, reports Reuters.
Dive Insight:
Younger designers are apparently responding to older millennials’ taste for higher quality things. The penchant of millennials to share with each other the fashion and other goods they’re considering could help propel higher-priced, longer-lasting “better” apparel and home goods.
It’s a phenomenon that designer and retailer Michael Kors has been expecting for a while now.
“This generation of teenagers is going to start shopping very differently when they reach their twenties — I think they’re going to have an aversion to the idea of disposable fashion,” Kors last year told Women’s Wear Daily. “It’s a concept that today's twenty-somethings grew up on and I have a feeling that today’s teenagers with their sophistication aren’t going to buy into that. They’re likely to rebel because they don’t want to be like the generation before them, and will actually want to spend money on things that will last, and versatility and sustainability.”
As millennials have gotten older and the economy has improved, the resulting boost in spending power is finally allowing them to acquire the clothes and home goods that you might call the “finer things.”
If the economy continues to stay somewhat healthy despite its recent stumbles, millennials' growing spending power could lead many to purchase longer-lasting, higher quality things. (Even if, most likely, they’ll still be looking for a perk when buying.)
“[Millennials] are savvy shoppers always on the lookout for a good deal,” Nielsen wrote last year in its report “Millennials - Breaking the Myths.” “They put a premium on authentic, handmade, locally produced goods – and they’re willing to pay more for products from companies with social impact programs. Getting a good deal is a priority, but they won’t compromise on quality. They want to feel good about what they buy.”