Millennials Increase Luxury Spending

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    Members of the generation known as the ‘millennials’ are increasing their spending on luxury items – designer clothing and accessories, tech gadgets, jewelry, etc. – faster than any other age cohort, says a survey of credit-card spending. Their parents, the baby boomers, still spend far more on luxury items (they make up 50 per cent of the total luxury market, while millennials are only three per cent), but it is young people whose luxury spending is growing the most spectacularly. The study results indicate Gen Y consumers increased spending on premium luxury fashion by 33 per cent in 2011 over the year prior. Despite representing the smallest group of luxury consumers today, Gen Y spending grew the most in full-priced online luxury retail, by 31 per cent in 2011 over the year prior, compared to Gen X at 23 per cent, boomers at 19 per cent and seniors at six per cent for the same period. Gen Y also led spending among all groups in specific retail categories such as jewelry, with an increase of 27 per cent as compared to Gen X and boomers, which increased two per cent and four per cent, respectively, and seniors, which declined spending by three per cent.