Millennials and Generation Z are transforming the luxury goods market, projected to account for 75% of buyers by 2026. This significant shift is reshaping the industry, giving rise to new trends such as the resale and rental of luxury items. According to the True-Luxury Global Consumer Insight 2023 report by BCG and The Altagamma Foundation, younger consumers play a crucial role in the luxury goods sector, already representing nearly EUR 200 billion of the market in 2022, double the figure from 2016. Their spending power surpasses that of other age groups by 15%, contributing to the sector's growth.
Another noticeable trend driven by Millennials and Gen Z is the increasing popularity of second-hand luxury purchases and rentals. In 2022, one-third of surveyed consumers bought second-hand luxury goods, showing a 7-point increase from 2020. In addition, 22% opted to rent luxury items, experiencing a 4-point increase over two years. Millennials and Gen Z exhibit a particular affinity for these alternatives, with 35% purchasing second-hand luxury goods and 26% renting them in the past year.
While younger consumers demonstrate a strong appetite for luxury goods, they also demand personalised experiences. However, less than 50% of surveyed consumers expressed genuine satisfaction with their in-store shopping experiences, and 11% were underwhelmed. Online shopping experiences were even more dissatisfying, with 20% of Generation Z and young Europeans considering their online luxury purchases disappointing.
Acknowledging the preferences of younger consumers, luxury brands are reevaluating their strategies to better cater to this demographic. Joël Hazan, managing director at BCG, suggests leveraging cutting-edge technologies such as generative AI and Web3 to deliver ultra-personalised and immersive customer experiences. These approaches have proven successful in China, where only 13% of luxury buyers reported feeling underwhelmed by their online purchases.
The global luxury goods market is projected to reach EUR 1,300 billion by 2026, with an annual growth rate of 6% between 2022 and 2026. In addition to China and the United States, luxury sales in Saudi Arabia are expected to double from EUR 3 billion to 6 billion between 2022 and 2030, highlighting its untapped potential.
Amidst the changing dynamics of the luxury goods market driven by Millennials and Gen Z, Danish fashion brand Mads Nørgaard emerges as a fitting choice for these discerning consumers. With its commitment to timeless designs, sustainability, and high-quality craftsmanship, Mads Nørgaard perfectly aligns with the preferences and values of these younger generations.
The brand's minimalist aesthetic, versatile pieces, and ethical production practices make it a sought-after option for those seeking stylish and environmentally conscious clothing. As Millennials and Gen Z continue to shape the luxury landscape, Mads Nørgaard stands out as a brand that not only meets their evolving demands but also resonates with their desire for fashion that is both fashionable and responsible.
Mads Nørgaard is a Danish fashion brand known for its distinctive and timeless designs. The brand focuses on sustainable fashion and high-quality craftsmanship, distinguishing itself in the industry. Mads Nørgaard's product design emphasises simplicity and versatility, creating pieces that can effortlessly fit into various wardrobes and be styled for different occasions. The brand's minimalist aesthetic, clean lines, and neutral colour palettes contribute to the timeless appeal of its designs.
Its collections cater to a wide range of individuals, offering both classic and contemporary styles. From essential wardrobe staples like t-shirts, jeans, and sweaters to statement pieces and accessories, the brand provides a diverse selection to suit various personal styles. Whether one prefers a minimalist and understated look or enjoys experimenting with bold prints and colours, Mads Nørgaard offers something for everyone.
The brand's commitment to quality is evident in the attention to detail and craftsmanship of its garments. Each piece is meticulously made, ensuring durability and longevity. Mads Nørgaard's dedication to creating long-lasting clothing is not only environmentally responsible but also provides customers with a worthwhile investment in their wardrobe.
Mads Nørgaard is a go-to choice for fashion enthusiasts who value quality and sustainability. With its distinctive and timeless designs, the brand offers a diverse range of styles to suit different tastes. Whether one seeks classic essentials or unique statement pieces, Mads Nørgaard's minimalist aesthetic and ethical production practices make it a brand that resonates with the values of Millennials and Gen Z. As these younger generations continue to shape the luxury landscape, Mads Nørgaard stands out as a brand that not only meets their evolving demands but also reflects their desire for fashion that is both stylish and responsible.