Luxury brands & older consumers

In an era of unstable economies, rising interest rates and a slowdown in consumer spending, luxury goods companies seem to remain largely unaffected; the simple reason that the affluent consumers continue to spend.

Whereas the average citizen may find a tight squeeze on outgoings when mortgage rates go up, the wealthy consumer will continue to shop as before. Luxury goods are said to have high income elasticity of demand: as people become wealthier, they will buy more and more of the luxury good.

According to the IGD the number of over 65-year-olds will grow by 153% in the UK between now and 2050 and will have serious spending power.

Think about it…it’s obvious. The kids have left home and the mortgage is almost paid off. They are simply looking to indulge!

Every ad agency should be bending over backwards to obtain luxury brands to work with.

Posted by Matt.