The Under 40 Luxury Consumer —
New Consumer Insight Study of the Generations of Affluence

Today's affluent market is dominated by different generations at different life stages:

• Baby Boomers, born from 1946 to 1964, who make up over half of the affluent market. These consumers are approaching or already in their empty-nesting lifestage.
• GenXers and Millennials: Younger luxury consumers (born 1965 and after) who make up about 25 percent of the affluent market. These consumers are in the family-formation and young children at home lifestage.

What Do the Under 40 Year Old Luxury Consumers Want and How Does It Differ from the Over 40 Crowd?

Given their different lifestages, these two generations demonstrate different luxury shopping behavior, with the under 40 affluent households led by GenXer or Millennial generation consumers spending more money on average buying luxuries than the typical over 40 year old Baby Boomers.

To prepare for the future, luxury marketers must understand the unique desires of the under 40 year olds, how they express luxury in their lifestyles today and into the future. Understanding the young luxury consumers is critical for marketers to target their marketing communications, advertising and product development efforts effectively now and into the future.

Unity Marketing is undertaking an intensive investigation of the mindset and consumer psychology of these two distinctive generations of luxury consumers. Through a series of focus groups among luxury consumers (household incomes of $150,000 and above) Unity will examine their differing attitudes toward luxury and how that impacts their buying and shopping for luxury goods and services. Subscribers to Unity Marketing's Luxury Tracking Study can participate in this special investigation of the generations of luxury.

Methodology

Six focus groups are planned: two groups among under 40 year old affluent women; one groups among Baby Boomer women; two groups among under 40 year old affluent men; and one group among affluent Baby Boomer men. Note: The Under 40 year old groups will include both GenXer generation and leading edge Millennial generation participants (up to age 29) to include their more youthful perspective.

Topics to be Investigated

The discussion will center on how the different generations perceive luxury — what luxury means to them and how important it is in their lives as a consumer. We will place special emphasis on understanding the view of luxury from the perspective of age: how younger and older consumers express luxury and relate to it in their lives

Areas to be investigated are:

• What luxury means to them and how they interpret luxury for their lifestyles?
• How important these specific values in purchasing luxury goods, such as exclusivity, status, prestige, quality, uniqueness, value, brand recognition and awareness?
• To what extent do the following influence you in purchasing luxury goods and services — television advertising, magazine advertising, internet advertising or websites, brand name, celebrity endorsers or users, media coverage, peers, friends, family? For example, does it make you want to buy a luxury if a celebrity you admire favors that brand?
• When and how often they indulge in luxury in their lifestyles as opposed to buying the ordinary brand or service?
• With so many marketers at all ranges of the pricing scale, from Target to Barney's New York targeting the 'luxury market,' has luxury lost its meaning to consumers? If luxury doesn't mean what it once did, what has replaced it?
• What gives them their greatest luxury satisfaction and happiness — luxuries they buy for their home; personal luxuries they buy for themselves, like fashion, jewelry and watches, cosmetics; luxuries they use such as appliances, electronics and automobiles; or luxuries they experience, such as travel, dining, spa and beauty services?
• For each category of luxury above — home, personal, utilitarian, experiential — we will discuss what makes one product or service more luxurious than another?
• About the luxuries in their lives, what kinds of satisfactions do they derive from the luxuries that they own, including one's home; collections; hobbies; 'toys' like boats, cars, motorcycles, etc.; at home spas, pools; and other lifestyle luxuries?

A draft copy of the moderators' guide that will be used for the discussion is available through the link on the right.

Deliverables

Companies interested in the future of the luxury market, especially the younger generation of consumers, are invited to participate in this special investigation into the under 40 luxury consumer insights study. Sponsors will participate in developing the overall study scope and objectives; have input on the moderator's guide and focus group presentation materials presented to the study respondents; participate in viewing the focus groups, either live or on tape; receive an in-depth focus group report; and attend a webinar conference to discuss the major findings and implications of the research findings for marketers targeting the luxury consumer market.

Price for participation in this special consumer insights study $5,000. (Unity Marketing's Luxury Tracking Subscribers can participate for reduced fee of $2,500)

To learn more about this study and participating in Unity's luxury generations research, complete the request form for more information to the right or call Pam Danziger at 717-336-1600 or email pam@unitymarketingonline.com