Millennials are hot in luxury marketing. Every future-conscious brand is ready to focus on this new generation. They are a fast-growing and influential segment which already accounts for more than 17tn dollars of the global private wealth. Now it might be true that millennials are the future of luxury, but why exactly? We have summed up the most important points as described by Stylus.
As millennials get wealthier they are starting to focus on more high-end brands. As the web and social media are completely incorporated into their daily lives they are an effective marketing channel. Not only are they open to receive brand content, they create it. They like to give feedback and engage with their favourite brands, share everything with their community but at the same time trust these contacts more than brands when making choices.
The new generation is known to be more open and to have stronger digital knowledge and social connections than previous generations. But there are some essential differences between segments of this group produced by among others, geography, wealth and life stage. For instance, millennials in western countries have lived in a society impacted by the economic crisis, whereas China and Southeast Asia has had a strong increase in economic growth. This kind of parallel experiences make for completely different mindsets.
Driven by Value & Values
Millennials are in search of meaning. They favor authenticity and sustainability over mass market brands. But they are also very value and price conscious. They look fro the best deal and want to spend on items which are worth the money. Nonetheless the millennial-generation is more willing to pay high prices for the items which they do perceive as high value compared to other generations. Quality, exclusivity, beauty and experience are important factors in this process. Besides that they are valuing experiences above ownership. This translates itself into both the growth of luxury experiences purchased as well as the desire for stronger purchase- and brand experiences.
Elias L. Doelman