MS&L Worldwide

03 April - Generation Y is refusing to give up its luxuries despite the credit crunch.

Cushioned from the impact of the economic downturn, young professionals aged between 28 and 35 with no kids, continue to reward themselves with frequent non-essentials such as designer make up, decent wine and mini-breaks because, in their own words, “I deserve it.”

“This notion of the “deserving rich” is unique to this age group who are currently unaffected by job losses, have no mortgage or school fees to pay and whose idea of cost-cutting means trading down from Waitrose to Sainsbury’s.” said Professor Peter Lunt, retail psychologist at Brunel University who led the research on behalf of global PR agency, MS&L.

“This audience expects “everyday luxury” to enchant their lives. “Luxury” is shifting from high cost items that are used to portray status to “new luxury” – smaller, often daily purchases that provide a buffer against the gloom of everyday life.” he continued.

But this audience is not entirely unaware of the perceived social embarrassment of continuing to spend in a downturn, as one commented, “I think it’s great that Net-a-porter is delivering in brown bags.”

ENDS

Notes to editors:

• Fieldwork carried out between 9 – 22 March 2009
• Qualitative focus groups of 25 men and women aged between 28 and 35 who had no children
• Interviewees earning between £35,000 and £45,000 p.a

Professor Peter Lunt, School of Social Sciences and Law, Brunel University, is a Board member of the Society of the Advancement of Social Economics. His academic expertise spans all forms of consumer decision making from sustainability, virtual shopping, attitudes to risk, “personal advertising” on interactive media and research in consumer psychology for the Office of Fair Trading.
 

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