Millennials often get a bad rap. Known for wanting more for less and expecting it to be handed to them on a silver platter, the millennial stereotypes go on and on. And while there are plenty of misconceptions surrounding this subset of the population, born between 1981 and 1996, the largest misconception is that millennials spend the most money on discretionary items than other generations.
Generation X is the generation that precedes millennials, and though Gen Xers make up only 25% of the population, they produce 31% of the total US income, and according to Forbes, they are spending one-third more annually than millennials. Additionally, their parents generation, the baby boomers have the greatest amount of disposable income of all generations.
Yet despite the facts, there has been a serious shift in marketing the last 10 years or so, with luxury brands letting the needs and wants of older consumers fall to the wayside while catering to the spending habits of the under 40 subset. And though the younger generations have tremendously impacted the way that retailers operate, pushing them to invest more in social media marketing, sustainability, and e-commerce sales platforms, the older generations deserve their attention too.
Too often, luxury brands have put a focus on trend driven items and the merging of luxury fashion and streetwear, thus alienating consumers that had once been brand loyal to them. When discussing the recent uptick in luxury brands ousting their beloved designers for fresh faces who will bring new aesthetics (think—Burberry and Bottega Veneta), reader Canuck65 said ‘to be “relevant”, brands so often market themselves to a younger consumer, who I think have less purchasing power…I personally no longer care for Gucci, Bottega Veneta.”
Furthermore, many of our own readers have expressed a sort of ‘millennial marketing fatigue’ in the last two years, as brands have pushed aside traditional marketing techniques in favor of social media marketing. Reader FashionableLena stated ‘maybe it’s because of my age, but I’m not influenced by these “influencers”. I see right through that inauthenticity…Sorry, but that is definitely not going to get me to purchase a bag.”
So why are so many retailers neglecting to take into account that Generation Xers and baby boomers shop and spend too? Now more than ever boomers and Gen Xers deserve to be heard and catered to. In fact, the economy needs their spending to recover from the current economic crisis as millennial jobs, and thus spending power, decline. The financial well-being of our country and retail industry particularly relies heavily on millennial spending, which is likely to decline in the wake of the coronavirus pandemic as unemployment skyrockets.
According to a report from The Wall Street Journal, the unemployment rate for millennials is 12.5%—higher than that of Gen Xers and baby boomers. That being said, older members of Gen X and the baby boomers who are either already retired with a fixed income, or making more than their younger counterparts, will likely be in a greater position to spend this year.
Additionally, the older generations are much savvier then marketers have paid attention to, especially now. In fact, nearly 50% of baby boomers that use the internet expressed an increase in their digital spending since March. Now more than ever it’s imperative that brands take time in their virtual boardrooms to brainstorm how to best serve millennials and both Gen Xers and the boomers. After all, they need to get dressed everyday too.
I do feel like Gen X and older have been largely disregarded. Presumably, Millennials would become even more important as they age and have more disposable income, so it’s not a mistake to build a relationship with them, but I do think brands are leaving money on the table by alienating the Gen X and Boomer generations in the meantime.
This is gonna be long.
I think you already answered your question. Millennials are more susceptible to trends, and fashion makes its profits in trends. With most brands having shareholders, and the constant need to post higher and higher earnings each quarter there is more money to be made catering to every whim and convincing people that you must buy something each season vs. one or two classic pieces a year.
In terms of creativity Millennials probably win the edge here from creative designers as well. With millennials there is more room to play with designs, trends, and colors and to an accomplished creative that’s exciting. With classic pieces you can only reinvent the wheel so many times. Not to mention brands across all price points will have an option for said classics which means designer brands have to compete with a larger amount of options which increases the chance they might lose their retail battle (see look for less and the popularity of that genre).
That’s not to say older customers don’t want new things, but if the comments on any “new brand” or “old brand goes back to the archives to reinvent something” PB posts are anything to go by the bar is high, and to be honest seemingly impossible. I would not be surprised if designers in general just decided to avoid it altogether because they feel they can’t please the pickiness.
Now visual representation in ads is important. Brands in general could do much better with showing a variety of looks, sizes, and ages in their collection. With influencers that goes back to my trend paragraph, but for the demo brands are trying to reach it really does work (Fendi, LV, and gucci have seen new life amongst Millells thanks to the work of a few). Brands will continue to ride that train until it’s not profitable, and that could take a while cuz influencers are always changing their MOs to sell more efficiently. Influencers also aren’t specific to the younger generation there’s plenty of older stars and lifestyle personalities selling their wares to their crowds that older generations eat up (sometimes unknowingly).
Some of the ignoring also has to deal with societal trends already well in place. Gen x’s whole infamous schtick is that no one knows who they are or pays attention to them. From what I read there’s also some anti-conformist in them which might play a role in consumption of designer wares. Millennials are seen as “demanding” and me me me, and know how to use the internet to convey that which makes it easier for marketing to cater to them. I’m ngl, my perception of baby boomers isn’t the most positive one, so I’m not gonna really touch that demo lol. Their imprint is seen in the ~experience~ tho, but I’d be curious to see if the decline in customer service/uptick in e-retail is correlated to the larger trend of millennials/gen z replacing their revenue and numbers and ease with impersonalization.
It will be interesting to see how younger millennials and gen z turn on the industry tho. With increasing calls for sustainability, the impending economic downturn, and lack of brand loyalty these are significant events that’ll put the price of non-essentials in perspective for some time. It’s def gonna be an interesting time for fashion for the next couple of decades.
THIS. So many thoughtful points laid out here.
As a person in her 50’s and having a mom who loves luxury brands also, I don’t think the brands are leaving us behind at all. They all carry classic items that we can always purchase. Even Gucci. I also think that even though some of the advertising campaigns are insane for someone my age, there are always one-off’s in there that I would purchase. We older people need to not fall into only classics, we need to be pushed into the future as well. So yes, some brands do feel like they are leaving us behind, but it’s not in a way that makes me feel alienated. Also, the crown jewel of handbags is probably one of the most classic, the Birkin. Hermes does cater to younger people, but ultimately they cater to an older clientele. So we have our choices.
Some of the Gucci campaigns are just insane in general!
I agree with this post. Almost every designer has trendy and classic pieces. I am no longer 20 but still love a good pair of sweatpants. I have seen people well over 50 who are wearing some crazy, trendy items. I just think we have all broadened our horizons and like choices. No matter your age, purchase and wear what you love.
Wondering why my comment was marked as spam? Kinda bummed, because I put some effort into that one too =(
Apologies, I resurrected your comment. Unsure why Disqus flagged it as spammy.
I’m over 50 and the problem companies face when marketing to me is – my experience. Its harder to reach me because:
• I’ve lived through the decades and styles now sold as revival and I DO NOT want to go back! Especially the 70’s.
• I’ve learned my lesson from wasting thousands on impulse or trend buying
• I’m less concerned with being trendy and more concerned with what works for me
• I know what kinds of garments and accessories will last through washing and wearing and which will deteriorate
I don’t limit myself to classics and I actively seek out accent and unusual pieces BUT because I’ve “seen it all” designers have to work much harder to offer me something that is truly new and exciting. Trendy isn’t good enough.
I’m in my early 40’s and I totally agree with your points here.
I feel like the hyper-focus on Millennials is less due to anything special about us (except perhaps being the first generation to really grow up with the Internet), and more a timing issue. The 18-35 demographic has always been the desired audience for pop culture and marketing dollars, because you’re capturing the people who are young enough to buy into ever-changing trends but old enough to have some spending money of their own.
As the decades wear on, Millennials will become the stodgy old parents and then grandparents who don’t buy into the latest flashy trend and want to spend money on fewer, better classics. Gen Z and Gen Alpha, and whoever comes next, will occupy the 18-35 age group and their preferences will determine how brands market themselves, IMO.
One sort of wrench in this whole thing: Will Gen Z even want to spend money on endless stuff when they have come of age during the COVID recession and worsening climate change? If ever a generation arrives where the 18-35 cohort actively does NOT want to be marketed to and does NOT enjoy spending money (say, like the Greatest Generation?), that’ll be the real game changer.
While you make some good points, I just have to say I’m 55 and I’m not stodgy!! I want new and innovative too, not just classics. But I also want quality and I know what works for me, Slapping cartoon characters on bags and then charging a couple thousand isn’t innovative in my opinion.
I think “luxury” fashion houses have done an amazing job with bait and switch. I am Gen X, mid-40’s, and remember when luxury was truly elusive, exceptional, exclusive, extraordinary and experiential. Every aspect of the process, from choosing an item, to saving for it, to finally going in to purchase it, to bringing it home to sit and stare, to play with it, to wake up the next morning so excited just to see it! Whatever “it” was, was art. And it meant something. It meant you’d arrived, or treated yourself, or you finally were an adult, or achieved something. It was a reward, infrequent, relished and honored. Things weren’t mass produced. Sourcing and craftsmanship were lauded and supply chains were transparent (the brands WANTED your loyalty and were so proud of their histories).
Now, boy. Wow. It’s mass production, 6 collections a year and capsule collections, cartoons and video game characters, factories all over the world, suspect practices, no customer service, buy buy buy. The SA’s most of the time have no connection to their brands, or even understand the brands’ histories. There is no transparency in the production and procurement process. Employees make very little – maybe even less than at Panda Express or McDonalds. There’s so much excess it’s burned or sent to outlets. People pander to their SA to try to get on “their good side” to get things influencers have brainwashed them into believing is the next big thing, until of course next month. Things that would be laughable are normalized, and cognitive dissonance is rife in the process of creating artificial and vapid, short-lived demand. LUXURY. IS. DEAD.
But shhhhhh!! Millennials don’t know this! They are too young to remember the good old days of the aforementioned. To them, luxury means LOGO! Their friends are all driving fancy cars and carrying LV and Chanel and Gucci in high school! Instead of saving 3000-5000 every year for a down payment on a house, they are saving for a bag that will soon un-trend the following year. Millennials are renters over purchasers, tend to wait for jobs they “want”, are having less children, getting married later (if at all) and are unlikely to actively engage in future goal setting. They are, “in the now”. The “luxury” houses cater to that, and will gladly take their dollars, because the world is shaky and ever-changing and unpredictable, so their attitudes towards short-term commitments are not only acceptable but serendipitous, maybe in all of their behaviors, for retailers.
There are some things out there for me to buy, and I do buy a lot. But it’s getting more difficult to navigate around all of the tacky sh** that’s out there. Quality is an afterthought, but hey YOLO right? (ugh).
I miss it all. The sensuality, the essence of design, innovation, craftsmanship, creativity and the once transformative experience that luxury used to be.
I was agreeing with a lot of what you said until you opted to categorise all millennials as the same.
I didn’t “opt” that. Those are the studies done already about millennials and their behaviors. No one said they were the same, but attributes can be applied to groups. It’s very simple psychology 😉 Look it up!
I think “luxury” fashion houses have done an amazing job with bait and switch. I am Gen X, mid-40’s, and remember when luxury was truly elusive, exceptional, exclusive, extraordinary and experiential. Every aspect of the process, from choosing an item, to saving for it, to finally going in to purchase it, to bringing it home to sit and stare, to play with it, to wake up the next morning so excited just to see it! Whatever “it” was, was art. And it meant something. It meant you’d arrived, or treated yourself, or you finally were an adult, or achieved something. It was a reward, infrequent, relished and honored. Things weren’t mass produced. Sourcing and craftsmanship were lauded and supply chains were transparent (the brands WANTED your loyalty and were so proud of their histories).
Now, boy. Wow. It’s mass production, 6 collections a year and capsule collections, cartoons and video game characters, factories all over the world, suspect practices, no customer service, buy buy buy. The SA’s most of the time have no connection to their brands, or even understand the brands’ histories. There is no transparency in the production and procurement process. Employees make very little – maybe even less than at Panda Express or McDonalds. There’s so much excess it’s burned or sent to outlets. People pander to their SA to try to get on “their good side” to get things influencers have brainwashed them into believing is the next big thing, until of course next month. Things that would be laughable are normalized, and cognitive dissonance is rife in the process of creating artificial and vapid, short-lived demand. LUXURY. IS. DEAD.
But shhhhhh!! Millennials don’t know this! They are too young to remember the good old days of the aforementioned. To them, luxury means LOGO! Their friends are all driving fancy cars and carrying LV and Chanel and Gucci in high school! Instead of saving 3000-5000 every year for a down payment on a house, they are saving for a bag that will soon un-trend the following year. Millennials are renters over purchasers, tend to wait for jobs they “want”, are having less children, getting married later (if at all) and are unlikely to actively engage in future goal setting. They are, “in the now”. The “luxury” houses cater to that, and will gladly take their dollars, because the world is shaky and ever-changing and unpredictable, so their attitudes towards short-term commitments are not only acceptable but serendipitous, maybe in all of their behaviors, for retailers.
There are some things out there for me to buy, and I do buy a lot. But it’s getting more difficult to navigate around all of the tacky sh** that’s out there. Quality is an afterthought, but hey YOLO right? (ugh).
I miss it all. The sensuality, the essence of design, innovation, craftsmanship, creativity and the once transformative experience that luxury used to be.
I’m a Gen X-er and am loving the fresh designs targeted at the younger audience. I have different versions of the old Bottega and have been bored of buying variations of that look. The new updated style is exactly what the brand, and others, need, to keep me interested. Don’t feel left behind. Embrace the change.
Really poorly written. Just wow.
Shear numbers, there are more millennials than boomers, there are more millennials than gen x, brands look for cradle to grave longevity. If you can bag a millennial they will most likely be a customer for life.
I feel like even Millenials are disregarded too, it’s all about gen Z now.
Gen X here. Agree with all comments. Will add that I think the role of influencer is downplayed and or minamized as convincing the easily led to favor what they favor. This is true but it’s broader. It’s getting as many eyeballs on your product in a way magazine or online campaigns can’t. Ready for a new bag (new or preloved) I check out a few bag hauls or collection reviews on YouTube to see what catches my eye. It allows me to see a bag in real time and many a bag I have crossed off my want list because I realize the bag is too small too big strap too short whatever. Also puts bags on my radar that I wasn’t aware of and/or showed in a light I missed from a photo …… to me they are no different than famous spokesperson for a brand and they have gotten way better at highlighting the promotion or that it was a gift. What do I care I’m not buying it because they have it I’m buying it because they showed it to me in a way that caught my attention but I’m old enough to know when I’m want something because I saw it versus I truly want it
I’m a millennial and I’m entirely turned off by “influencer” marketing. I see wasteful buying habits and a lack of appreciation for luxury in current culture. I also watch prices increase as quality fails and I feel that this will be what alienates buyers, regardless of age. But those who have appreciated previous eras of luxury fashion will likely be more discerning consumers.
I can hardly believe the original article failed to consider the reality that millennials are not the emerging market for luxury goods — China is. According to Forbes, in 2019, Chinese consumers accounted for 90% of the growth in the personal goods luxury market. According to Vogue Business, Chinese consumers purchased 33% of all luxury goods in 2018, estimated to reach 46% by 2025. Sometimes I can’t help but feel like Gen X and particularly Baby Boomers are so focused on Millenials as the scapegoat for any undesirable change in the status quo, that they don’t make a good faith effort to step back and examine the facts of the market. Ok, I get it, we all hate “influencers,” but if it’s the product you don’t like, consider that it was far more likely to have been made for the Chinese market rather than the millennial market.
ETA: Particularly those cartoon character collaborations as mentioned specifically in the article — having lived in Hong Kong for several years, cartoon characters on clothes and accessories are very popular with young and old alike there.