What do millennials, Gen Z think about luxury purchases?
Base Beauty Creative Agency and Mintel, a global market research firm, have released “Chasing Rich," a report that concludes Millennials and Gen Z purchases reflect not just taste but the values and lifestyles they aspire to--sometimes at any cost.
Key findings:
Being Rich: Genuinely wealthy consumers, with luxury lifestyles made accessible through social media. Celebrities like Gwyneth Paltrow have capitalized on this by expanding into CPG spaces and partnerships like Ruggable and CB2.
- 65% of U.S. consumers agree luxury products/services impress others.
- 64% of Gen Z and 67% of Millennials use product dupes to save money.
- 1/3 of beauty shoppers have bought makeup dupes seen on social media.
Living Rich (But in Debt): Many are willing to go into debt to experience or project wealth, often seen in the "girl math" trend.
- 35% of Millennials go into debt for experiences; 22% for unexpected purchases.
- 33% of consumers regret overspending on beauty, rising to 52% for Gen Z and 40% for Millennials.
Planning Rich: Zillennials are focused on financial literacy and long-term wealth building, inspired by influencers like Mrs. Dow Jones.
- 42% of consumers seek less expensive alternatives to high-end products.
- From fashion to wellness, purchasing decisions are shaped by influencers and their communities. This blend of social media and influencer culture has shifted traditional advertising, prioritizing authenticity, relatability and aspiration.
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- 59% of 29-43-year-olds value showing off their financial status through their lifestyle.
- 59% of Millennials are more likely to buy products sponsored by content creators they follow.
- 48% of Gen Z shoppers have made purchases based on influencer recommendations.