Conventional wisdom is that older consumers, though often wealthy enough to afford luxury items, are more into ‘experiences’ than ‘posessions’ at this stage of life.
As the theory goes, when we age we become more content about who we are and less concerned about the impressions of others. For this reason, items of conspicuous consumption, such as luxury brands, are less appealing. Instead we prefer to spend on experiences. Invisible to others but more meaningful to the owner.
BCG’s word to luxury marketers includes “Do not overlook older consumers”
The report goes on …..….Even beyond the sheer size of this group, there are good reasons for luxury companies to target consumers aged 60 or older. Compared with previous generations of older consumers, this generation is still young at heart. Most of these consumers are in good physical shape, live longer, and-in Western countries, especially-are accustomed to buying luxury goods. They were the ones who fueled the explosion of luxury markets in the 1990s. The trends that are reshaping consumer tastes-notably the importance of value and the growing appreciation of experience-based luxury-will be even more pronounced among these consumers.
So while attitudes of the ageing populaton may suggest a move away from luxury goods, there’s certainly good reason for brands to continue targeting them.