NEW YORK, NY--(Marketwired - March 17, 2015) - In its recently released State of Luxury 2015 survey of high-income households, the New York-based Luxury Institute shows strong evidence that luxury brands are overall doing a satisfactory job meeting the standards of younger high-end shoppers who are notably more approving than baby boomers of current trends in several areas.
Four qualities cited as essential for a luxury firm, by a majority of U.S consumers from households with a minimum annual income of $150,000, are superior quality (74%), craftsmanship (58%), service (52%) and design (51%). On each of these criteria, wealthy consumers under the age of 50 are far more likely than their older cohorts to agree that companies today are executing better than they were in the past.
Millennials are more than twice as likely as Boomers (43% versus 19%) to say that quality is improving. In addition, a far greater share of Millennials (43%) than Boomers (15%) reports a perceived increase in the investment value of luxury goods. Millennials, younger than 35 years of age, and GenXers, between 35 and 49, are also much more inclined than Baby Boomers to applaud improvements in custom products, personalized offers, loyalty programs, customer recognition, and the ability of a company to anticipate their needs. Despite relatively high satisfaction, younger consumers still see plenty of room for improvement in quality, craftsmanship, and customer service.
As for attributes they deem necessary in a sales professional for a luxury firm, knowledge (75%), professionalism (71%) and courtesy (65%) rank in the top three, followed by honesty (63%) and experience (60%). Sales professionals in jewelry (41%) and leisure travel (38%) are deemed to be the best overall, while younger consumers often cite grooming, personal finance, and designer shoes as industries represented by exemplary sales personnel.
"Millennials represent the future of luxury and the good news is that recent innovations and investments to enhance the shopping experience are largely well-received," says Luxury Institute CEO, Milton Pedraza. "What's important is for firms to continue investing in systems and personnel to deepen customer relationships and ensure that they deliver on the metrics that matter for each customer."
Survey respondents reported average household income of $318,000 and $3.1 million average net worth.
For more information and additional insights from this survey and other research, visit www.LuxuryInstitute.com or contact us directly with questions.
Contact Information:
Katherine Sousa
ksousa@luxuryinstitute.com