Investment in luxury pieces: Gen Z boost the trend

Millennials and Gen Z are continually turning to investments quite different to those traditionally favoured by their parents’ generation. Bitcoin and other cryptocurrency are the obvious examples of ‘modern’ investment assets and have exploded in popularity, in part led by celebrity endorsements.
The same buyers are turning to non-traditional luxury assets, such as handbags, as investment pieces. More culturally significant than traditional stocks and shares, a growing number of buyers are investing in iconic designer items. Andrew Shipilov, professor of strategy at Insead, recently described the sector as “Covid-proof…the sector that people spend money on when they cannot spend on travel. It’s one of the winners” [of the pandemic]. Indeed, the luxury goods market in China grew 48% last year, with domestic spending boosted by travel disruptions (according to a December report from Bain & Co).  Read more…