A new report from the Boston Consulting Group says that shifting demographics is one of the main drivers in the growth of experiential luxury, a subsector which caters to people who favor experiencing luxury (for example at a spa or safari) over owning luxury.
“The research behind the report shows that experiential luxury now makes up almost 55 percent of total luxury spending worldwide and, year on year, has grown 50 percent faster than sales of luxury goods.”
“Four trends are driving the move toward experiential luxury:
- The dictates of demographics. In developed economies such as the U.S., Japan, and Europe, consumers who drove the luxury boom in the 1990s are now beginning to retire. They have reached a stage in life when they no longer need nor want to own new “things”—so they are primary customers for experiential-luxury offerings.” READ MORE.