Are the Millennials important for the Swiss Watch Brands?

The term “millennials” was introduced in 1991 by Howe and Strauss when they published their book “Generations”. It represents people born between 1981 to 1996. Although some people say between 1980 to 2000. The United States Census Bureau indicated that the number of millennials as of 2014 is far more than the Baby Boomers. Millennials are about one-quarter of the entire US population.

Swiss Luxury Watch Brand Be Aware of the HENRYs

Swiss Luxury Watch Brand Be Aware of the HENRYs

A segment that exists among the Millennials hold a significance for luxury brands is the HENRYs (high earners not rich yet).

Since established wealth can only be associated with age, Millennial Henrys aged between 23 and 38 years in 2019 have now begun to achieve a steady pace with regards to their wealth and income.

They have a high income compared to most of the US population, usually between $100k to $250k per year. 

The HENRYs, in relation to the Millennials also have a better level of education, are better informed, and have broken new grounds that will influence their other lower-income peers.

The majority of individuals who attain High Net Worth status usually begin as HENRYs. Therefore, this group is vital for the long-term perspective of the Swiss Watch industry.

Luxury watch brands need to be aware of these customers to establish and develop a relationship.

The challenge faced by luxury watch brands is that HENRYS usually approaches the luxury market with fresh insights about luxury, their opinion about it, and how they want to experience it.

Understanding HENRYs Luxury Shopping

IPSOS carried out a study and discovered that 81% of current luxury shoppers reveals that the definition of LUXURY constantly evolves. Brands are expected to fully grasp how the consumer wants to engage and participate.

Luxury brands require fundamental shifts in their approach to sales to meet with the HENRY's beliefs and values in regards to Luxury. 

Many Swiss watchmakers are still too attached to their conventional approach to luxury.

Millennial HENRYs are more concerned about achieving the lifestyle of their dreams before they become 40 years of age, and not wait until they are older.

Millennial HENRYs place more value on their experiences than on physical luxury goods. Euromonitor referenced a survey carried out among Millennials which states that a fundamental shift in customer values exists towards luxury experiences.

This survey discovered that more than half of the millennials in the US tend to spend on experiences rather than physical goods.

This means that in regards to luxury goods a status symbol is being substituted by a luxury experience that can be shared on social media.

Considering their luxury shopping, the Millennial HENRYs are a technology-empowered generation with access to a global eCommerce market. As a result they gain instant access to luxury retailers worldwide that are competing on prices.

They also have the highest education and access to information than the previous generation and can easily determine the worth of their purchases in order to make the right decision.

Swiss Watchmakers are confronted with a delicate balance between present and future fortune.

Swiss Luxury brand's prosperity today depends on an older Baby Boomer generation, wanting a more traditional approach to luxury, while their future prosperity depends on Millennial HENRYs who require a completely different approach to luxury.

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