A new force has emerged in the luxury industry – ‘the youth quake’ and they’re shaking things up … in a good way!According to a WWD article, “Affluent young shoppers helped limit the damage to the luxury sector last year and set it on a course for recovery earlier than other parts of the economy.”
The article says the younger, more affluent spender is typically male and between 25 and 44. And that while “these young consumers represent a small segment of the overall luxury demographic, they were the most resilient during the downturn, rebounding the most dramatically.”
Local luxury spending
Luxury spending in Japan and Australia was up 5 percent in 2009, and jumped 18 percent in February and March, according to data collected by American Express Business Insights, the analytics and consulting organisation within American Express.
“We saw luxury fall off pretty quickly, but we thought it would be more sustained,” said Ed Jay, Senior Vice President of Business Insights. “We were surprised it did not fall more through [2009], and we were even more surprised at how quickly it came back.”
Jay attributed “the breakneck reversal in emerging markets and in Australia to the fact that credit availability and the fallout of the U.S. financial markets affected these regions less.”
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