Millennials – the generation reaching young adulthood in the early 21st century – are redefining luxury and creating a new image of affluence through discreet wealth. They seem to be the generation that embodies this vision of Wealth Beyond Money, by investing less in material goods and more in their lifestyle.
A recent Harris study shows that more than 75% of millennials would choose to spend money on an experience or event over buying something desirable.
Spending more on experiences
A recent Harris study shows that more than 75% of millennials would choose to spend money on an experience or event over buying something desirable. Compared to previous generations, Baby Boomers and Gen X, they are more likely to spend more on things such as travel, entertainment, and dining.
But even if their purchases are not material, they say a lot about them and can still be shared on social media. The only difference is that, with this approach, millennials have the luxury to choose who they want to show off their wealth to while keeping it casual in the street wearing jeans and t-shirts à la Marc Zuckerberg.
Experiences aren’t all Millennials spend their hard-earned money on. Their health and wellness are also a big part of their spending.
Spending more on themselves
Experiences aren’t all Millennials spend their hard-earned money on. Their health and wellness are also a big part of their spending.
Perhaps, an investment for the future to ensure they can enjoy life to its fullest. All in all, millennials seem to define wealth differently, equating it more with success and purpose than baby boomers do, according to a study by Boston Private.
What of material possessions?
But it doesn’t mean that they don’t want to own things, they just have a drastically different approach to what and how to buy.
When it comes to acquiring material things, Millennials put very specific motivators in their purchase:
- What they can do with a product (the experience)
- What they can tell others about the product
- What owning this product says about them (their purpose, their values, etc.
Still here, it’s all about the experience they will have with the product. Hence the rise of personalization, the return of second-hand (objects that already have a soul), and this will to invest in sustainability (objects will stay with them to create memories and can be passed to the next generation). We can consider this approach as the return of real materialism: Being selective and caring about things rather than accumulating them.
No surprise then that experience is becoming a core concept in premium brands strategy, to meet this generation with a growing spending power, that values living a life of purpose and is definitely willing to spend, but just differently.
