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In Milan, Gen Z and Millennials are driving luxury

Forget about "sciure"

In Milan, Gen Z and Millennials are driving luxury  Forget about sciure

According to a study by Global Blue, in the Quadrilatero della Moda, Gen Z and Millennials are the main drivers of the luxury market. Between August and October, as explained by the marketing platform to MFF, consumers aged 18 to 40 spent 2,164 euros, an average that exceeds by 20% the same months in 2019 and 40% more than spending in other areas of the city, generally calculated around 1,325 euros. The report highlights that the best customers for the historic center of Milan are Americans, despite their presence having decreased by six percentage points in recent years, from 27% to 21% in 2023. Second in the ranking are customers from the Gulf Cooperation Council (Saudi Arabia, Bahrain, United Arab Emirates, Kuwait, Oman, and Qatar), at 16%. The data that brings relief to the retailers of the Quadrilatero, however, concerns the return of tourists from China, which has been declining for years due to their country's strict COVID-related restrictions. While in 2019 they were the largest buyers in the sector, today they represent only 11% of the luxury client base in Milan. Their spending remains high: an average of 2,690 euros per receipt throughout Milan.

Consumers taking advantage of the tax deduction in the Milanese Quadrilatero are increasing and are younger than ever, explained Global Blue. According to the report, buyers between 18 and 40 years old represent more than half of the consumers in the entire city. A significant category for luxury shopping - the average receipt of Gen Z and Millennials in the Quadrilatero is around 3,000 euros - is made up of "infrequent" buyers, but contributes significantly to the performance of the boutiques on Via Montenapoleone, Sant’Andrea, Manzoni, and Spiga. The report indicates that the most popular items continue to be clothing and fashion, continuously growing throughout the territory, while watches and jewelry are declining.