On Baby Boomers, Gen X, and Luxury

In our latest insight from the "Futuring in Luxury" series, we envisioned a scenario where luxury brands fully tap into the potential of the Baby Boomer and Gen X demographics.

There is a strange dichotomy underfoot: the luxury and beauty industries seem preoccupied with the youth of Gen Z and Gen Alpha when older Gen X and boomers have the financial capacity to spend extravagantly. Baby boomers, in particular, a generation known for defying convention, are redefining retirement. They are wealthier, healthier, and more tech-savvy than previous generations, and their expectations for their golden years are far from rocking chairs on a porch. Oscar Wilde clearly had a point when he wrote, "The tragedy of old age is not that one is old, but that one is young," but today’s “older gens” live life differently to their parents, possibly flipping that quote upside down.

While the chatter around Gen Z and Gen Alpha continues unabated, the age of maturity is undoubtedly upon us, and the proof is in the media’s increasing obsession with older models and spokespeople. Clearly, this generation has been mildly neglected by the luxury industry, and there is a sizeable market opportunity here that requires a little rethink and pivot. Older generations, including older Gen X, but especially boomers born between 1946 and 1964, present many opportunities for luxury brands willing to adapt their approach. Quite a few brands are beginning to do so for various reasons. 

What Makes Boomers and Older Cohorts Such Appealing Luxury Customers?

In our insight, we note some critical characteristics that make older cohorts ideal luxury candidates. Here are four of them:

Financial Security and Time:  Boomers are generally in a strong financial position. Many are retired or nearing retirement, with disposable income and the time to indulge in experiences and high-quality products. Unlike younger generations, who are burdened with student loans, starting out in jobs, and raising families, they have the resources to invest in luxury freely.

Heritage and Value: Older Gen X and Boomers value quality and craftsmanship. They appreciate brands with a rich history and heritage, something luxury brands excel at providing. They may be more willing to spend a premium on a timeless piece that will last a lifetime and investment pieces they can hand down to the next generation rather than trendy items. Brands with investment value include Patek Philippe, Vacheron Constantin, Cartier, Bulgari, Van Cleef & Arpels, and icons like Chanel and Hermès. These typically hold their value and are coveted by younger generations.

Experiences Trump Things:  While boomers and older Gen X appreciate luxury goods, as part of the present industry shift, experiences are becoming increasingly important. Pure luxury brands can offer unique experiences alongside their products, such as exclusive events, travel packages, or personalized consultations. Since more and more luxury brands are crossing into hospitality and branded residences, the older cohort’s target customer is an increasingly important consumer. The hospitality industry has truly benefitted from the post-Covid revival of travel. A notable example is the extremely successful listing of Viking Cruises, a cruise company catering to the over-55 crowd.

In-store shopping and loyalty – Exceptional Customer Service: Older cohorts tend to be more old-school and traditional and appreciate polite and personalized customer service and brand loyalty programs that cater to their needs and preferences. Luxury brands can score highly with this target audience when really paying attention to facets of the customer experience in-store and how they can optimize this. Since this generation is more used to in-store shopping and less driven by e-commerce, building a connection through an engaged experience in-store is especially important.

Read the full "What If…Boomers Become Luxury’s New Obsession? Luxury’s “Silver Lining" from Silvia Coleman

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