7 ways rich millennials are redefining what luxury looks like - Business Insider

• Rich millennials are giving the luxury world a facelift.
• Like other millennials, they spend on experiences— but they're opting to pay for VIP treatments and customization.
• In luxury fashion, rich millennials are reinventing the meaning of expensive sneakers and streetwear.
• Visit Business Insider's homepage for more stories.

Rich millennials' spending habits are turning the luxury sector on its head.

Like the rest of their generation, rich millennials prefer to spend on experiences — but unlike the rest of their generation, they pay extra to heighten these experiences with VIP treatments and customization.

Rich millennials are also creating new trends and status symbols, namely expensive sneakers and streetwear, the latter of which has become entwined with luxury fashion. This is largely due to the role of social media — as more millennials take to Instagram, brands and fashion magazines are losing some of their clout to influencers.

That's not to mention millennials' preference for the share economy, which has trickled into the luxury world. Rental services like Rent the Runway have made luxury goods more accessible to others.

Here are seven ways rich millennials are redefining luxury.

They seek exclusivity and customization in their experiences.

Affluent millennials also prefer to customize their experiences — an added bonus they're willing to spend extra money on. As the elite shift their focus away from goods, "they want personalized experiences that are either inherently unique or specifically tailored to them," Business Insider's Lina Batarags wrote.

This is especially true for the affluent millennial traveler, who seeks luxury hotels that offer personalized amenities and attention like cocktail butlers mixing drinks in your room or drink trolleys in the hallways, Batarags reported.

According to Deanna Ting of Skift, luxury hoteliers are using customization to win them over.

"Personalization is what they want," Jenni Benzaquen, vice president of luxury brands in Europe for Marriott International, told Ting. "Luxury used to be one thing to one person but it's no longer about white gloves and white tablecloths. There's no more formality in luxury and hotels need to understand our guests. They want what's unforgettable and unique, and they have a thirst for the unknown and they are going to markets where their friends haven't been before."

They choose brands based on their mission and values.

But heightened experiences aren't the end all, be all. Instead of replacing the role of brands in wealthy people's lives outright, experiences are augmenting the significance of and consideration that goes into buying a particular brand, Batarags reported.

"Younger generations are less likely to be staunch loyalists to a single brand when compared to their parents and grandparents," Mike Phillips, Wealth-X's vice president of marketing and communications, told Batarags. "They're more likely to try something new if it speaks to their personal values and passions."

He continued: "More and more, the wealthy are evaluating a brand in terms of: What mission does this brand represent? How does it contribute to the greater good ... If I choose to purchase this product, what does that say about me and my values?"

That kind of awareness extends beyond just products, too.

Entire industries are developing or adjusting services to cater to this customer interest, Batarags wrote. Consider wellness, which is increasingly regarded as a modern embodiment of luxury. Accordingly, an array of spas and studios offering treatments like cryofacials, weeklong retreats, and vitamin IV drips are delivering those experiences.

They invest in a new kind of status symbol: the luxury sneaker.

But that doesn't mean rich millennials shy away from shopping — they're more likely to invest in a pair of luxury sneakers as a status symbol.

Footwear is the most powerful category in the online luxury market, according to a recent report by The NPD Group— and at the forefront is the sneaker.

Thanks to their desire for comfort and athleisure, millennials are largely behind this trend, Beth Goldstein, fashion and accessories analyst at The NPD Group previously told Business Insider. Celebrities and fashion editors are dropping $900 on Balenciaga's Triple S sneakers and Silicon Valley tech CEOs are spending $495 on Lanvin low-tops.

As a result, affluent millennials have helped drive up the price of the sneaker and have given it a foothold in the tech industry and fashion world.

They're bringing streetwear to the luxury market.

Their appetite for athleisure has led millennials to bring streetwear out from the underground. Many luxury brands have been partnering with streetwear brands to cater to millennials, Business Insider previously reported.

While the subculture of streetwear has been around for decades, it's seen a spike in popularity because of Instagram, Jessica Sulima of Adweek reported.

"Streetwear's loud aesthetic allows the trend to make noise on social media," Sulima wrote. "And as younger shoppers are beginning to favor uniqueness over craftsmanship, out goes the desire for traditional luxury."

She added: "As high fashion houses tap more and more into this growing social media trend, streetwear is occupying a larger space within the upper echelons of style."

It's making Gucci cool again— in 2015, the brand brought on Alessandro Michele as creative director, who helped Gucci embrace streetwear and the influence of popular culture.

Popular

Here's a list of everyone who is boycotting or cutting ties with Brunei after it introduced new laws to punish homosexuality with death by stoning

Popular

How a $4 million lawsuit created 'Shazam!' and 'Captain Marvel' as we know them today

Popular

Whole Foods shoppers blast Amazon's Prime member discounts as the company announces it's slashing prices

Popular

I've been hiring people for 10 years, and I still swear by a simple rule: If someone doesn't send a thank-you email, don't hire them.

Popular

A wave of Islamic countries started to stand up to China over its persecution of its Muslim minority. But then they all got spooked.