Younger consumers dominate luxury spending as social media fuels designer FOMO

Chanel? In this economy?... Apparently, if you’re under 40. Millennials and Gen Z’ers were responsible for all the luxury market’s growth last year, according to a Bain & Co. report. The luxe consumer is getting younger: Gen Z shoppers are starting to buy designer goods at 15 (3 years earlier than millennials). Think: Dior foundation, Cartier watches, and Moncler puffer jackets. The trend’s benefiting the industry’s biggest companies.

I could wear my Louis Vuitton… raincoat. The economic weather isn’t favorable, with soaring interest rates, slowing growth, and sticky inflation. Still, luxury sales have largely stayed shielded from the economic storm. Designer retailers like Louis Vuitton owner LVMH and Gucci owner Kering thrived last year as the strong US dollar put European goods “on sale” for Americans, while a surge in wealth creation has boosted spending.

• Vuitton index: LVMH shares surged to a record high yesterday, solidifying its lead as Europe’s most valuable company (its owner, Bernard Arnault, is also the world’s richest person). LVMH owns 70+ luxe brands, including Dior, Bulgari, and Dom Pérignon.
• Sticker shock: Thanks to strong demand, luxury labels can get away with big price hikes. Chanel’s classic flap bag now costs 60% more than it did prepandemic. Meanwhile, Rolls-Royce sold a record # of cars last year — at an average price of $534K.