YOUTH RISING

Millennials will make up half of the world’s luxury consumers in a few years’ time. We quiz three young watch and jewellery buffs on the factors that will affect their decision to purchase

What does the new generation consider when acquiring a watch or jewellery piece

By definition, millennials are the demographic cohort born between the early 1980s and the late 1990s. This means, currently, a large proportion of them are approaching or already at the peak of their careers. Most of them boast strong spending power, and are willing to splurge on luxury goods, as many global studies have shown. According to a 2018 report by Swiss bank UBS, millennials contributed to 85 per cent growth in the luxury sector across key markets such as China, Europe and the US. The same survey also predicted that they will represent 45 per cent of high-end spending by 2025.

So, what about luxury appeals to these young consumers? Information is easily available today and with many of them well-travelled and well-educated, millennials understand the luxury market well. This is particularly pertinent to the watch and jewellery sectors with the many comparative resources and discussion forums online.

But one factor that ranks high on the priority list of luxury millennial spenders is quality and craftsmanship. In fact, they place emphasis on quality over brand equity and trend, according to a 2017 Deloitte study conducted among millennial respondents from four regions (US, UK, Italy and China) with propensity towards luxury items. Nearly 40 per cent of them rank quality as the most important aspect that attracts them to a luxury product—double that of uniqueness, the next most attractive factor of luxury.

The emphasis on quality among young luxury consumers is not just prevalent in certain markets. It is a global phenomenon. Our young watch and jewellery connoisseurs, particularly among the Singapore Tatler readers, think so too. Savoir faire showcased by the maisons is just as important as, if not more than, the aesthetics of watches and jewellery.

The young trio—carmen Ow, Derrick Yeo and Sonia Ong— in this feature have been faithfully following the evolution of the industry for some time. Decked out in the latest watches and jewellery, they share with us their experience, thoughts and current obsession.

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