The cost of living crisis might be forcing many consumers to batten down the hatches to deal with crippled finances but it seems other Brits – especially younger consumers – refuse to scrimp on their luxury goods.
That is according to a new study by creative experience agency XYZ, a 160over90 company, which reveals more than two-thirds (68%) of UK consumers say they would still consider a luxury brand purchase; a figure which rises to 90% among those aged 18 to 34.
The survey, conducted from May through August 2023, asked a nationally representative sample of 2,000 UK adults about their perceptions of luxury brands and experiences as part of the agency’s Luxury Refocused report.
It found that 83% of the 18- to 34-year-olds surveyed describe luxury as “affordable”, despite many only just entering the workforce and only recently having their own disposable income.
In addition, two-fifths (41%) of the adults said they have attended a luxury experience within the past year, with examples cited including premium dining, luxury shopping, spa trips, immersive experiences, and exclusive drops from brands.
For the 18- to 34-year-old cohort, this rises to 61%. Further, more than half of those who attended a brand-hosted luxury experience said they would be likely to purchase from the brand.
XYZ senior vice president and executive creative director Paul Stanway said: “In spite of the fierce economic and societal pressures at play on younger consumers in the UK, they are set to transform the luxury market with their perception that a luxury product can be more of an investment than a cost.
“This perception has created an ‘irrationalisation’ when these consumers think of luxury purchases. They don’t reject the high price points and exclusivity if they feel they can’t afford it.
“Understanding what younger consumers are seeking from luxury brands, paired with an apparent growth curve, could deliver significant ROI in the sector as a whole, as well as specifically in experiences in the near future. The signs suggest that brands can move into this space confidently.”
The report contradicts a separate study, published in March, which suggested that the financial squeeze had turned consumer spending on its head, with Brits now more likely to treat themselves to food and booze than fashion.
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