Millennial Rules in Luxury
The Majority love wearing hoodies, t-shirts and jeans as a staple, they will check out reviews online before making a purchase according to the Luxury Institute. They certainly have no problem paying premium price for luxury goods, as long as it's justified, but knowing how and where the product is made is of the upmost importance. This of course is the generation we call the "Millennials," anyone born between 1980-2000.
Accenture analysis did a report on this ambitious generation last year, which mentioned that in four to six years this generation will be the largest consumer in the Luxury market and rightfully so.
Although, roughly 55% will learn about a brand by venturing into a store to view the collection first hand, while checking out the vibe of the store. Wanting to connect with a sales associate and inspecting the craftsmanship of the garment is simply enough of a bricks and mortar experience .
In today's world of the digital age, having the comfort of using social media and eCommerce is clearly no surprise that they would much rather make a purchase online. So brands that are thinking of winning this generation over will have to change their old ways of doing new things.
Kudos to Burberry for being one of the first brands to expand their marketing landscape by catering to the generation with campaigns such as "Art of Trench" which has helped their global business achieve double digits increases.
As the Polar Vortex continues to effect consumers mood to shop, Luxury brands should start thinking about what new opportunities lies ahead to help further define the millennial rules of engaging .
This generation truly sees the importance of storytelling, having a brand experience is much more of value than spending the money on one expensive item, it also doesn't hurt that at the sweet age of sixteen they were already armed with Chanel and Hermes Birkin bags, while cruising around town in their Range Rover, BMW and Mercedes G wagon.
Gone are days of traditional status symbols, but does it mean that owning the must -have item is no longer a status symbol or is it a way of proving to yourself that, "You can achieve?"
When you compare the difference between the affluent Generation Y and Millennials who play in the luxury space, the games are completely different. Gen-Y unfortunately did not spend a lifetime accumulating and protecting their cash, they are still in the discovery mode, while Millennials game is, "I have it, then you should have it too," which is no surprise that around 65 percent gives to charity and are demanding change according to Deloitte Touche ltd.
So, luxury retailers should take note of the old saying, "Don't judge a book by its cover."
If you want to attract this future generation of leaders, adapt to their beliefs that, luxury is not a symbol of achievement, rather a promise to self that "You Can Achieve."