Luxury Watch Buyers - Under 40
US-based MVI Marketing surveyed 1,000 consumers between the ages of 25 and 40 years old. The survey showed that high-end traditional watch brands were favored over the rest by respondents with a household income of $80,000 and higher.
We could not find the demographic parameters regarding the geographical locations and occupations of under 40 luxury watch buyers. Moreover, we also could not find if people with certain occupations are more likely to buy luxury watches than other occupations.
We started the search by looking into the opinions of luxury watch buyers from sites like Medium and The New York Times. We also checked into customers’ opinion in luxury watch brands’ websites such as Rolex and Tag Heuer. From this search, we found an article that published the opinions of two under 40 luxury watches buyers. However, the two participants were based outside the US. When looking into customer testimonials in luxury watch brands’ websites, we could not find any opinion of common buyers of the product. All we could find were testimonials of celebrities who endorsed the brand. Moreover, we checked each of the brands’ annual reports in hopes of finding some relevant information about the given topic. However, we could not find any details about each of the brands’ buyer demographics.
We then looked into the luxury watch market in hopes of finding the needed demographics. We scoured reliable sources such as Deloitte, McKinsey, Wall Street Journal, and smaller marketing agencies such as JCK, Unity Marketing, and MVI marketing. However, all the sources tackled the overall information of the market, and no information could be found about specific age groups that buy the most luxury watches and which state they live. Similar results came out when we looked into luxury-market oriented sites such as Luxury Society, Bizz Bee Solutions, and Business Off Fashion.
After the extensive search, we concluded that companies were not willing to divulge personal information of their consumers when it comes to occupation, age, and area of residence.
We then decided to broaden the research criteria to the entirety of the luxury products market, and we also looked beyond the specific age group. From this search, we were able to find information such as which US cities had the highest sales of luxury retail goods or which income group was keen to buy the maximum number of luxury items. We included this in the research brief as additional findings.
The Under 40 age group
Those who were born in the years between 1981 and 1996 are about 23 to 38 years old in 2019. These people are considered to be part of the millennial generation. Moreover, according to a graph titled “The Generations defined,” those born between 1997 and 2012 are part of generation Z. These people are aged between 7-22 years old. It was found that these people are still dependent on their parents when making buying choices. So with this in mind, the researchers decided to use the millennial generation as their age group for this research.
Demographic Information on Purchasers of Luxury Watches of those aged Under 40
MVI Marketing, a company based in Austin, Texas, surveyed 1,000 consumers. These consumers are millennials aged between 25 and 40 years old. The survey found that luxury watches or high-end traditional watches are favored by consumers who have a household income of $80,000 or higher. The findings of the company relate well with the overall results in the US, which found that the luxury brand, “Rolex,” is the favored watch for people with a household income of $107,000 or higher. Moreover, about 6.2 million millennial households who earn at least $100,000 is becoming the target market for the luxury jewelry and watch industry. This is because they are predicted to be the largest emerging generational segment for the industry in the coming years of 2018-2020.
When it comes to location, it is not sure as to which region in the US has the highest millennial luxury watch buyers. However, a report from JLL’s article titled, “The New World of Retail Report,” found that the states of New York, Chicago, Las Vegas, Miami, and San Francisco reported the highest luxury sales for retailers in per square foot. Additionally, there are three emerging locations for the industry, and these are Dallas, Houston, and Orlando.
Moreover, the details about the occupation of millennial luxury buyers were not available. However, a report from Market Watch found that the wealthiest families in the US (or those who are part of the top fifth earners) spend about 65% of their consumption on luxury goods, while families who are in the middle-income bracket spend 50%, and those who are part of the lowest-income bracket only spend 40%. From this information, it can be assumed that people with occupations that provide high-income are more likely to purchase luxury watches. In addition to this, it was found that luxury watches are more famous in specific industries such as entertainment and sports. Sport figures like Lebron James and Kobe Bryant have their preference for luxury watches, which are the brands of Audemars Piguet and Girard- Perregaux, respectively. Other celebrity figures such as Kim Kardashian likes Rolex with Diamonds, while Leonardo DiCaprio enjoys the Tag Heuer Carera 16 Day-Date Chronograph, and Usher prefers the Rolex Milgauss brand.
Perception of Luxury Watches of those Under the 40 Age Group
It was found that in the US, equal proportions of Millennials purchase smartwatches and mechanical watches. However, for millennials who buy mechanical watches, they look for three important factors, and these are simplicity, personalization, and transparency.
When it comes to assessing the popularity of luxury watches among the under 40 age group, Deloitte found that the age group enjoys high-end Swiss watch brands. Specifically, the consumers within the age group would purchase an analog luxury watch over a digital smartwatch, when given USD 5,135. Additionally, a survey from JCK found that millennials have two brands they prefer when it comes to luxury watches and these are Rolex and Tiffany. It was also found that 39% of high-income earning teens prefer Rolex as their luxury watch brand.
Although there is no exact data about the purchase rate of millennials when it comes to luxury watches, it was found that watch collectors and enthusiasts in the US own about 2.5 luxury watches, with 30% of the given population owning three or more. In addition to this, luxury watches only take up 4% of every millennials’ jewelry box— however, this rate increases to 10% for millennials who are aged 35 and older. The rate is also expected to grow exponentially over the years.