A new era of " Luxury products"
The turn of 21st century is witnessing a spectacular growth in luxury consumption. There are three outstanding segments of luxury products: cars, personal luxury goods and luxury hospitality. For the purpose of this study, this assignment will just focus on luxury for personal use
Initially, Luxury products were often incorporated into only certain elite classes, the privileged, the royalties, the rich and the famous, all of them stood at higher social level in community.
However, in contemporary times, branded goods are suitable for middle class and now have become more affordable to more customer.
Especially, either millennials or generation X seems confidence when they are in good shape but only millennials are vulnerable to the recommendation of other people
Some Millennials still rely on their parental finance, have crushing student loan debt and many of them are underemployed. As a result of this, young generations cannot afford to purchase luxury branded products. However, Luxury goods are stood on the list on what millennials enjoy devoting their money to because they think that this is an once-in-a-lifetime opportunity to enjoy a various colour of life and maybe not have a second chance to regain . However, it is widely admitted that affluent consumers in millennial segmentation have recently walked into the maelstrom of work, so they would rather reserve hard-earned money for the sake of activities and travel than branded possessions
Millennials cohort tend to more seek the opinions of their surrounding people than members of gen X in term of the influence of familial aspects in intention process. Millennials are very close to their family because they realize their parent’s value While Gen X-ers experienced the noticeable percentage of their parental separation because of the high workload of their parent-older boomers , financial crisis, political instability or economic stagnation.
It is an undeniable fact that 82% of millennials have an affinity for detailed data which derived from Peer-to-peer recommendation while 52% of Generation X considered the opinions of group of friends and their relatives. Millennial consumers tend to look for and review essential information written partly by their peers on social media platform such as Snapchat, Instagram and YouTube before making a purchase decision.
However, the outcome derived from the research of Abby Foulkes in 2016 show that, both two generations will “make their own mind up about a luxury brand rather than listen to the opinions of other people “, and they also agreed with statement that “A luxury brand preferred by other people but which does not meet my quality standards will never enter into my purchase consideration” at around 1.80 mean. Two statements received a host of strongly advocate from two generations. It means that in terms of, motivation to comply, both generations will hold the initiative and self-determination position in the purchase action.