Japanese investors in their 20s are spending stock market profits on luxury goods following a four-year rally in the Nikkei index, according to a May survey by SMBC Nikko Securities. The survey found that 34.6% of investors aged 20–29 spent or plan to spend stock gains on luxury purchases — the highest proportion across all age groups and nearly matching the 34.5% who chose reinvestment. The trend reflects a cultural shift in Japan as younger generations capitalize on AI-driven market gains, with household unrealized stock profits growing approximately 150 trillion yen over three years. Social media amplification and fear of missing out are driving conspicuous consumption among young investors who profited from the Nikkei 225's over 30% rise this year. The consumption pattern marks a departure from Japan's historically high savings rate, though it also highlights widening wealth inequality as low-wage workers remain excluded from the asset boom.
SMBC Nikko Securities Survey Reveals Luxury Spending Trend Among Young Investors
The SMBC Nikko Securities survey conducted in May showed that 34.6% of investors in their 20s spent or plan to spend stock investment returns on luxury goods purchases. This figure represented the highest proportion across all surveyed age groups and nearly equaled the 34.5% who indicated they would reinvest profits. In contrast, investors aged 30 and above prioritized reinvestment and savings at significantly higher rates. The survey results emerged as Japanese household unrealized stock gains grew approximately 150 trillion yen over the past three years.
27-Year-Old Entrepreneur Buys 20 Million Yen Porsche After Stock Gains
Daisei Tateno, a 27-year-old entrepreneur, sold his animation business for several hundred million yen two years ago and invested a substantial portion in stocks. Market gains significantly increased his assets, enabling him to recently purchase a Porsche valued at approximately 20 million yen — more than five times the average starting salary for Tokyo university graduates. Tateno, who grew up in modest circumstances and admired self-made billionaires like SoftBank Group founder Masayoshi Son, stated: "If you properly ride the market wave, anyone can become wealthy comfortably." The Nikkei 225 index rose over 30% this year, benefiting numerous novice investors who entered the market through the government's tax-free small investment system.
Tokyo Jewelry Retailers Launch New Brands Targeting Young Consumers
Tokyo-based jewelry company Happiness & D introduced a new brand called "No." in 2024, featuring large pendant necklaces and diamond rings, and expanded its product line this year. Company president Satoshi Maehara, in his late 50s, commented: "When I was young, I couldn't imagine a young office worker wearing a gold necklace to work, but it's becoming increasingly common these days." Keitaro Takada, representative of an SNS marketing company, stated: "Social media now has the greatest influence on young people." The retail sector's response reflects growing demand from young consumers with stock market gains.
Wealth Gap Between Top and Bottom 20% of Under-30s Widens 13 Million Yen
Nomura Securities analysis found that the wealth gap between the top 20% and bottom 20% of individuals under 30 years old widened by approximately 13 million yen over the past decade — the largest increase across all age groups. The asset boom excluded low-wage workers, for whom rising wages are offset by inflation and interest rate increases. A JCB credit card company survey conducted in January showed that 38% of respondents in their 20s increased luxury spending over the past two years, while one in three prioritized savings. Katsuhide Takahashi, representative of asset advisory firm Malibu Japan, stated: "Economic polarization is definitely intensifying. The wealthy are becoming truly rich, but many young people's lives remain stuck paying rent and eating convenience store meals."
Analysts Warn Luxury Consumption Masks Economic Anxiety Among Young Investors
Even affluent young investors harbor economic anxiety beneath their luxury consumption. Tateno revealed: "I thought I would feel rich with several hundred million yen, but I don't feel that way at all." He noted that despite owning a sports car, he cannot afford a proper home in Tokyo, where new apartment average prices reached 106.6 million yen in May — up approximately 14%. Takahashi stated: "Money that previous generations would have spent on real estate or invested for the future is now being poured into luxury goods and high-end cars. Unlike the bubble era when the entire society felt rising, today's atmosphere is much less euphoric." He added: "If the market eventually crashes and profits disappear, these young people will face very difficult circumstances."
FAQ
What percentage of Japanese investors in their 20s spent stock profits on luxury goods according to the May survey?
According to the SMBC Nikko Securities survey conducted in May, 34.6% of investors aged 20–29 spent or plan to spend stock investment returns on luxury goods purchases. This was the highest proportion across all surveyed age groups and nearly matched the 34.5% who chose to reinvest their profits.
How much did the wealth gap widen between top and bottom earners under 30 in Japan?
Nomura Securities analysis found that the wealth gap between the top 20% and bottom 20% of individuals under 30 years old widened by approximately 13 million yen over the past decade. This represented the largest wealth gap increase across all age groups in Japan during that period.
