Bain Released Us Z Generation Luxury Consumer Observation

American management consulting firm Bain & Company (Bain) has released an industry report on Z generation and luxury consumption in the US.

The report shows that for luxury goods, only 2% of the current consumption comes from Z generation consumers (who are born in 1996-2010 years), far below the proportion of Y generation consumers - 31% (Y generation, also known as the millennial generation, refers to people born in 1980-1995 years).

However, on the other hand, this also means that the Z generation has greater potential for growth. Bain & Company predicts that by 2035, the gap between the consumption of luxury goods in the Z generation and the Y generation will be reduced to 5%, and that of the Z generation will increase to 35%-40%, while that of the Y generation will increase to 40%-45%.

There is no doubt that Y generation consumers will continue to be the main consumers of luxury goods industry in the next few years, and will continue to affect the luxury industry. Because they not only witnessed the rise of electronic commerce, social networking, opinion leaders, but also participated in them.

However, with the growth of age, the importance of Z generation will be further highlighted. They are completely different from the previous generation, and their luxury consumption habits also have new characteristics.

　　 According to Federica Levato, the author of the report, "for the generation of Z, despite the fact that they did not witness the 911 terrorist attacks, they are still in an era of political instability and terrorist attacks. Their parents are X generation (who were born in 1960-1980), and experienced the riots in Losangeles in 1992, so they pay more attention to cultivating their sense of responsibility and independence for the next generation of education.

Previously, a number of surveys of Bloomberg and Deloitte (DDT) reported that many behaviors of Z generation were influenced by the X generation of their parents. Because of their parents' emphasis on financial security, Z generation has more financial knowledge than Y generation, and is more willing to save money and avoid debt. In addition, they are also more alert to alcohol, drugs and sex than X generation parents.

Compared to the Y generation, the Z generation is more firm and pragmatic, and is more inclined to take an active part in the society. At the same time, as they were born into the digital age, they had a more peaceful attitude towards the Internet, social networking and e-commerce. For them, smart phones are a more common thing. They can't replace face-to-face communication. It's just an alternative tool.

Similarly, these influential leaders today are no longer great people for the Z generation. On the contrary, they are more willing to listen to family members and friends, as well as those who actually do well in real life, such as sports enthusiasts.

Levato said: "Z generation not only considers themselves as simple consumers, but what they want is to become the leading role in the luxury industry, hoping to establish a real emotional connection with the brand. Therefore, they are more fastidious about brands and believe that brands should be more open and transparent.

To sum up, the future luxury brands need to pay more attention to products, while ensuring product quality, paying attention to environmental protection and social responsibility. At the same time, luxury brands should also invest more in physical retail outlets and establish emotional ties with the new generation of young consumers.