Shoppers wait in line to enter a Guccio Gucci SpA store at Harbour City shopping mall, operated by Wharf Holdings Ltd., in the Tsim Sha Tsui district of Hong Kong, China. (Photographer: David Paul Morris/Bloomberg)

Millennials Love Luxury and Their Spending on Gucci Shows It

(Bloomberg) -- Millennials feel better about their future earnings than older consumers and spend more on luxury goods.

That’s according to a survey of more than 3,000 consumers across China, Europe and the U.S. by UBS Group AG. Eighteen to 35 year olds have contributed 85 percent to growth in the luxury market last year and will represent 45 percent of total high-end spending by 2025, according to the report published Friday.

Millennials Love Luxury and Their Spending on Gucci Shows It

Gucci and Louis Vuitton are millennials’ favorite brands, according to the survey and social-media data analyzed by UBS. While the intent to buy online is higher in the age group than among older consumers, physical stores continue to feature highly among preferred places to shop.

Millennials Love Luxury and Their Spending on Gucci Shows It

Chinese millennials, a major driving force behind sales growth, allocate about 20 percent of discretionary income to purchasing luxury goods, a similar share as older generations. Younger people in Italy and the U.S. have higher spending budgets than their elders, according to the report.

©2018 Bloomberg L.P.