Millenniaires are the other millennials few refer to: most chatter revolves around this demographic group’s inability to commit to buying a home, mostly due to affordability concerns. There is another group within this vibrant sector of society: wealthy, successful millennials who have earned early wealth, and the other group that have access to wealth or stand to inherit it….or Millenniaires.
Marketers seem a little obsessed these days with Millennials but there is good reason to be: Approximately 3.8 billion people in the world were born after 1986, and most emerging markets now have much larger youthful populations due to significant advances in healthcare for children. There are roughly 75 million millennials in the USA alone. A big marketer mistake is assuming all of them are incapable financially or unwilling to commit to buying real estate. This generation are the beneficiaries of the high tech industry that has minted tend of thousands of wealthy individuals under the age of 30. They are also the children and grand children of two of the wealthiest generations of all time. Many Baby-boomer parents of Millennials have seen the value of assisting their children buy a home. This early transfer of wealth teaches kids fiscal responsibility as well as learning the value of being responsible for a property. It also saves lots of money often wasted on high rents, especially in large cities.
When it comes to transfer of wealth, we will see a transfer of around $12 trillion from the Greatest Generation (those born in the 1920s -30s) to the Baby-boomer generation…… but they in turn are expected to transfer around $30 trillion in assets to their heirs over the next 30-40 years. And that’s just in the USA. So around 1% of the very young achieve wealth before the age of 30…..but 1% is roughly 750,000 Millennials….in the USA alone! (Let’s not forget that 96% of those self-starters achieve wealth after the age of 45.) These Millenniaires are a potent demographic for the luxury markets, especially in larger urban centers.
Aside from the Millennnial generation’s desire for independence and good information, they are very connected to multiple generations who wish to keep up with them and stay closely connected to them. Every luxury marketer needs to pay close attention to this small but highly potent group of future spenders.