Posts on the millennial-friendly platform are likely to lead to sales, according to a UBS report on European luxury published Friday.
"Given the rising importance of social media for luxury brands — especially in the context of millennials growth — we believe Instagram data can no longer be ignored as a data point for luxury investors, to help them pick the winning brands," the report's authors said.
The number of Instagram followers a luxury brand has is likely to correlate to sales. "We note a clear linear relation between the number of followers on a given social channel and the brand sales at retail," UBS notes. Even if fans can't afford to buy a designer item immediately, their interest will likely mean they purchase "sooner or later."