Majority of Young Brits See Luxury Brands as Affordable

Despite the cost-of-living crisis, seven out of ten consumers in the UK said they would consider buying from a luxury brand. Recent research commissioned by creative experience agency XYZ, a 160over90 company, found that 68% of UK consumers would consider a luxury brand purchase. This statistic rises to a considerable 90% among younger consumers aged 18 to 34.

The survey, conducted from May through August 2023, asked a nationally representative sample of 2,000 UK adults about their perceptions of luxury brands and experiences as part of the agency’s Luxury Refocused report. 

Some of the additional key findings include:

Affordable luxury

83% of the 18 to 34-year-olds surveyed describe luxury as “affordable,” despite the generation’s newer entry into the workforce and only recently having their own disposable income.

“In spite of the fierce economic and societal pressures at play on younger consumers in the UK, they are set to transform the luxury market with their perception that a luxury product can be more of an investment than a cost,” said Paul Stanway, senior vice president and executive creative director at the agency. “This perception has created an ‘irrationalisation’ when these consumers think of luxury purchases. They don’t reject the high price points and exclusivity if they feel they can’t afford it.”

A nation of experience seekers

41% of the adults surveyed confirmed they have attended a luxury experience within the past year, with examples cited including premium dining, luxury shopping, spa trips, immersive experiences, and exclusive drops from brands.

For the 18 to 34-year-old demographic, this figure rises to 61%. Further, more than half of those who attended a brand-hosted luxury experience said they would be likely to purchase from the brand.

“Understanding what younger consumers are seeking from luxury brands, paired with an apparent growth curve, could deliver significant ROI in the sector as a whole, as well as specifically in experiences in the near future,” added Stanway. “The signs suggest that brands can move into this space confidently.”

To learn more about how to access a full copy of the report, click here.