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WHO’S REALLY GOT THE MONEY TO BUY LUXURY? July 18, 2012 (0 comments)
New York, NY—While the wired Millennial generation is the future and any savvy retailer who wants to stay in business long-term must cultivate them, their parents—Baby Boomers ages 48-66—still are the wealthiest demographic in the United States. And as of now, they’re still the ones who are footing most of the bills for luxury goods and services. According to this report on Mediapost.com, Boomers in this age group consume more online media and spend more online than either Gen X or Millennials.
Who makes or influences 80% or more of Boomer household buying decisions?
Hint: she’s female. According to Marti Barletta, founder of the TrendSight Group and author of Marketing to Women, once college bills are over and kids leave the nest (if they don’t come back, that is), the discretionary spending power of 50-plus women soars. They spend 2.5 times what the average person spends, and are the primary buyers for computers, cars, financial services and a lot of other big-ticket categories. Boomers purchase 62% of autos and 80% of luxury travel, says the article, and earlier studies have pegged the spending power of American women at almost three times the total GDP of Germany.
Clearly, that’s a lot of cash for jewelers to tap into. And for many women who’ve put the kids’ needs ahead of their own, now is finally the time they feel ready to spend a bit on themselves.