World's Youth Are Clicking For Luxury, Says Report
Gone are the times when luxury was afforded by only those who created substantial savings over years. Data show millennials around the world will affect patterns of investment within the luxury segment, and by 2025. According to a study by Bain & Company and Farfetch, the global market for luxury personal goods will have 40 per cent young buyers.
Of quick business
Research projects that with younger buyers, time taken to close a purchase is also less than what it takes for older buyers. For example, if it took 30 minutes for someone of the older generation to make a purchase decision, a millennial would take only 10 minutes for the same ─ yes, one-third of the time. While the study talks only about personal luxury goods, real estate cannot be seen outside of this fold.
Online is the space
Amid all this, the digital space has changed the way buyers look at, experiment and buy luxury. The study says that 70 per cent of such purchases are influenced by online interactions. This means at least one digital interaction has taken place with the brand or the product before the purchases. What's more interesting is the fact that those within the age bracket of 18-24 complete their first luxury purchase online. Real estate is no different.
What's clicking in India?
The roots of real estate portals, or at least the early forms of it in India, can be traced back to early and mid-2000's. Soon, dedicated portals sprang up, thanks to the information technology revolution. In the days that were to follow, data started coming cheap. When data became cheaper, information on property purchases became easily accessible. The traditional way of buying and selling across markets and products underwent a change.
Thanks to virtual reality (VR) and augmented reality (AR) , the criticism against real estate being pitched online has also weakened. The two tools have helped NRIs (non-resident Indians) and foreign investors to know about property in the country while they sit at faraway places. Looking at the progress at this front, real estate transactions closing online should become a reality soon.
“With some unusual and instructive innovation in technology, Indian real estate industry is now witnessing a greater than before usage of Virtual Reality trend. Now developers engage in a host of marketing initiatives, apart from making a swanky show apartment at the site. They engage in walkthroughs- 3D and 4D, drone shoots etc. This technology isn’t limited to the developer's office, but can be done even at trade shows etc this is an attempt to show the buyer the closest possible finished product. These technological advancements surely suit the palate of young, dynamic and evolved consumers," says Ashok Mohanani, Chairman Ekta World, Vice President NAREDCO (West) .
He explains the term for us. Virtual reality is a computer-generated simulation of real-life environments that are primarily achieved with the use of headsets. When worn, the user’s vision and hearing are stimulated to provide realistic experiences. Virtual reality and augmented reality are the current buzzwords and are expected to disrupt many sectors, real-estate being one of the top in the list. It has some links to be worked upon such as technology cost, loops in execution and occasional nausea caused by VR headsets. However, with improved urbane and user-friendly features, more and more real estate companies will invest in this technology to meet the evolving preferences of tech-savvy homebuyers.”
What else is happening?