6 in 10 buy luxury items amidst pandemic: survey

High-end goods are becoming more popular amongst millennials. 

A total of 62% of Hong Kongers purchased luxury items in the past 12 months with more than half buying bags and wallets, a report found.

In the Millennial Motivations and Buying Behaviours Online across Southeast Asia and Hong Kong report, the Carousell Media Group (CMG) found that millennials are more likely to save up to buy luxury items than those aged 35 and over. 

“Overall, Singapore, Carousell Malaysia, and Hong Kong are above the purchasing average; despite being in the midst of a global economic slowdown,” JJ Eastwood, CMG's managing director said.

“This signals the rise of a growing aspirational consumer class, dominated primarily by under 35s.”

This comes even as 93% of millennials in Hong Kong felt that purchasing pre-owned items is more sustainable. 

CMG added that most of the millennial household income goes towards savings (27%), which is higher than the regional average. However, over 35s are significantly more motivated by promotions and sales when it comes to purchasing a luxury item.

The report, conducted with IAB Southeast Asia and India, surveyed over 3,500 respondents in Singapore, Hong Kong, the Philippines, Malaysia, and Vietnam. 

“Across all the local market research, what was consistently obvious is that we are witnessing the explosive growth of recommerce as it feeds two key needs of consumers today; the demand for sustainability and the hunt for a good deal,” Miranda Dimopoulos, Regional CEO IAB SEA+India, said. 

“This juncture of ethics and eCommerce create fertile ground for retail media because of the interplay amongst customer data, closed-loop reporting, and real-world results that generate more and better data.”