The growth drivers remain Millennials and Gen-Z: Millennials and Gen-Z are driving the majority of luxury sales and they are shaping the extended future of consumption.
High-income Millennials plan to spend the most post-pandemic, according to McKinsey & Company. Millennials; born between 1981 and 1994/6; currently 25 to 40 years old (72.1 million in the U.S.) Gen-Z; born between 1997 and 2021. They are currently between 6 and 24 years old (nearly 68 million in the U.S.) They are also the youngest, most ethnically-diverse, and largest generation in American history, comprising 27% of the US population.
Affluent younger consumers will continue to; have new needs, new ways of doing things, new ways of acquiring things, while digitally connected.
The Bank of America predicts that Gen-Z incomes will surpass Millennials in 8 years and be ‘most’ disruptive generation ever and will see their income surpass that of millennials by 2031.
Slightly less than half of Millennials and Gen-Z’s think that business is having a positive impact on society, yet views on business ambitions are beginning to stabilize.
A Deloitte survey found that a slightly lower percentage of respondents this year said they believe businesses are focused solely on their own agendas or that they have no motivations beyond profitability. This may indicate that they view business leaders’ discourse around stakeholder capitalism as sincere, but they will want to see concrete impact to match corporate promises.
Breakdown: 7 in 10 Millennials feel that 72% businesses focus on their own agendas rather than 64% considering society.
