In this report I focus on generational shifts in the global luxury market, examining how brands
can better speak to these new audiences and offering insights and principles for
luxury and premium brands in 2018 and beyond.
At A Line we're constantly looking at how brands can better connect with audiences.
In this report we focus on generational shifts in the global luxury market, examining how brands
can better speak to these new audiences and offering insights and principles for successful
luxury and premium brand marketing in 2018 and beyond.
At A Line we're constantly looking at how brands can better connect with audiences.
In this report we focus on generational shifts in the global luxury market, examining how brands can better speak to these new audiences and offering insights and principles for successful luxury and premium brand marketing in 2018 and beyond.
At A Line we're constantly looking at how brands can better connect with audiences.
In this report we focus on generational shifts in the global luxury market, examining how brands
can better speak to these new audiences and offering insights and principles for successful
luxury and premium brand marketing in 2018 and beyond.
INSIGHT REPORT
Lux 2.0
Lux 2.0
Lux 2.0
Lux 2.0
Since 2016 the global luxury
market has grown 5%.
However underlying patterns are different from previous years:
– All wealth created today is new wealth
– Increased bifurcation, with the wealthy getting richer
– Millennials are starting to control this wealth
– Millennials are the “new elite” and have a different set of values
than previous generations
However underlying patterns are different from previous years:
– All wealth created today is new wealth
– Increased bifurcation, with the wealthy getting richer
– Millennials are starting to control this wealth
– Millennials are the “new elite” and have a different set of values than previous generations
The new generation.
The new generation.
Millennials account for 85% of this growth, and now compromise nearly 30% of spending on luxury products. This is growing year on year, and their values and behaviors are changing the way luxury works.
Millennials account for 85% of this growth, and now compromise nearly 30% of spending on luxury products. This is growing year on year, and their values and behaviors are changing the way luxury works.
Millennials account for 85% of this growth, and now compromise nearly 30% of spending on luxury products. This is growing year on year, and their values and behaviors are changing the way luxury works.
Millennials account for 85% of this growth, and now compromise nearly 30% of spending on luxury products. This is growing year on year, and their values and behaviors are changing the way luxury works.
The luxury landscape
is changing.
A SHIFT IN AUDIENCES
– The Millennial demographic is as large as the Baby Boomer generation
– Mobile technology & social media are spreading Millennials opinions and behaviors
– As a result Millennial behavior is affecting how Gen X view the world
– The Boomer generation is moving into retirement with a dramatic decrease in luxury consumption
– Luxury consumers are becoming younger, spending more from 35-44 than from 45-54
A SHIFT IN ATTITUDES
– From aspirational exclusivity to authentic inspiration
– From wealth & power to value-driven self-expression
– From brand monologues to brand conversations
– From acquiring luxury products to ownership experiences
A SHIFT IN AUDIENCES
– The Millennial demographic is as large as the Baby Boomer generation
– Mobile technology & social media are spreading Millennials opinions and behaviors
– As a result Millennial behavior is affecting how Gen X view the world
– The Boomer generation is moving into retirement with a dramatic decrease in luxury consumption
– Luxury consumers are becoming younger, spending more from 35-44 than from 45-54
A SHIFT IN ATTITUDES
– From aspirational exclusivity to authentic inspiration
– From wealth & power to value-driven self-expression
– From brand monologues to brand conversations
– From acquiring luxury products to ownership experiences
Principles for successfully connecting
your brand with the Millennial generation,
2018 and beyond.
Principles for successfully connecting
your brand with the Millennial generation, 2018 and beyond.
Principles for successfully connecting your brand with the Millennial generation,
2018 and beyond.
Be audience obsessed. Focus on customer
experience to drive deep relationships.
Be audience obsessed. Focus on customer experience to drive deep relationships.
Be audience obsessed. Focus on customer experience to drive deep relationships.
This generation expects brands to involve and engage them instead of being preached at. To survive and thrive, luxury brands must stop obsessing solely about THEIR brand and product, and instead obsess about their customers wants, and their ongoing relationship with the brand.
Above image: A recent Vogue shoot featuring models Adwoa Aboah, Liu Wen, Ashley Graham, Vittoria Ceretti, Imaan Hammam, Gigi Hadid, and Kendall Jenner.
This generation expects brands to involve and engage them instead of being preached at. To survive and thrive, luxury brands must stop obsessing solely about THEIR brand and product, and instead obsess about their customers wants, and their ongoing relationship with the brand.
Above image: A recent Vogue shoot featuring models Adwoa Aboah, Liu Wen, Ashley Graham, Vittoria Ceretti, Imaan Hammam, Gigi Hadid, and Kendall Jenner.
This generation expects brands to involve and engage them instead of being preached at. To survive and thrive, luxury brands must stop obsessing solely about THEIR brand and product, and instead obsess about their customers wants, and their ongoing relationship with the brand.
Above image: A recent Vogue shoot featuring models Adwoa Aboah, Liu Wen, Ashley Graham, Vittoria Ceretti, Imaan Hammam, Gigi Hadid, and Kendall Jenner.
This generation expects brands to involve and engage them instead of being preached at. To survive and thrive, luxury brands must stop obsessing solely about THEIR brand and product, and instead obsess about their customers wants, and their ongoing relationship
with the brand.
Above image: A recent Vogue shoot featuring models Adwoa Aboah, Liu Wen, Ashley Graham, Vittoria Ceretti, Imaan Hammam, Gigi Hadid, and Kendall Jenner.
Be authentic. Know what you stand for,
your story and why you exist so you can
push the boundaries creatively.
Be authentic. Know what you stand for, your story and why you exist so you can push the boundaries creatively.
Creating a brands story, values and behaviors is an essential framework to shape the future of the brand.
New Gucci creative director Alessandro Michele went through the archives and defined what he felt Gucci stood for. He set a new agenda focused on their values of self-expression and sustainability, and driven by content focused around emotions and personal connections.
Since Alessandro Michele took the role of Creative Director at Gucci they have seen a 50% uplift in sales, with half of this coming from millennials.
Above image: Gucci's campaign mixes modern and traditional cues with whimsy for great affect.
Creating a brands story, values and behaviors is an essential framework to shape the future of the brand.
New Gucci creative director Alessandro Michele went through the archives and defined what he felt Gucci stood for. He set a new agenda focused on their values of self-expression and sustainability, and driven by content focused around emotions and personal connections.
Since Alessandro Michele took the role of Creative Director at Gucci they have seen a 50% uplift in sales, with half of this coming from millennials.
Above image: Gucci's campaign mixes modern and traditional cues with whimsy for great affect.
Express your brands passions and values,
creating a platform for self-definition
and self-expression.
Express your brands passions and values, creating a platform for self-definition and self-expression.
Express your brands passions and values, creating a platform for self-definition and self-expression.
Talk to your genuine passions and the issues you believe in, creating genuine audience connections through shared values.
Amplify these shared values through self-expression, creating a platform for audiences to amplify these shared experiences through word of mouth.
Be inspiring, powerful, and help lead the movement.
Above image: Chanel staged a feminist protest inside the Grand Palais for their spring / summer fashion show.
Talk to your genuine passions and the issues you believe in, creating genuine audience connections through shared values.
Amplify these shared values through self-expression, creating a platform for audiences to amplify these shared experiences through word of mouth.
Be inspiring, powerful, and help lead the movement.
Above image: Chanel staged a feminist protest inside the Grand Palais for their spring / summer fashion show.
Engage your audience with ideas
that entertain.
Engage your audience with ideas that entertain.
Engage your audience with ideas
that entertain.
Lifestyle brand COS launched their new season with “New Spring”, an interactive installation and multi-sensory experience in Milan’s historic Cinema Arti. Inspired by Japanese Cherry Blossom festivals, they wanted to bring the COS brand to life through a visceral brand experience.
The idea was designed to bring delight and whimsy to their Millennial audience, tangibly demonstrate how their new materials functioned, and drive awareness through press, influencer and social media.
Above image: COS' “New Spring” an interactive installation in Milan.
Lifestyle brand COS launched their new season with “New Spring”, an interactive installation and multi-sensory experience in Milan’s historic Cinema Arti. Inspired by Japanese Cherry Blossom festivals, they wanted to bring the COS brand to life through a visceral brand experience.
The idea was designed to bring delight and whimsy to their Millennial audience, tangibly demonstrate how their new materials functioned, and drive awareness through press, influencer and social media.
Above image: COS' “New Spring” an interactive installation in Milan.
Be Focused. Take the time to understand your customers behaviors and tailor a marketing roadmap around them.
Be Focused. Take the time to understand your customers behaviors and tailor a marketing roadmap around them.
Gucci’s success has been partly because they have taken the time to understand how their Millennial audience wants to engage with them. Be on the digital channels they use (Instagram, Message & Chat apps, Social Video, Pinterest, Snap etc). Make sure your content is easy to access, authentic, inspiring and entertaining.
Above image: Gucci successfully attracts Millennials with the right channel mix, featuring inspiring and entertaining brand expressions.
Gucci’s success has been partly because they have taken the time
to understand how their Millennial audience wants to engage with them. Be on the digital channels they use (Instagram, Message & Chat apps, Social Video, Pinterest, Snap etc). Make sure your content is easy to access, authentic, inspiring and entertaining.
Above image: Gucci successfully attracts Millennials with the right channel mix, featuring inspiring and entertaining brand expressions.
Gucci’s success has been partly because they have taken the time to understand how their Millennial audience wants to engage with them. Be on the digital channels they use (Instagram, Message & Chat apps, Social Video, Pinterest, Snap etc). Make sure your content is easy to access, authentic, inspiring and entertaining.
Above image: Gucci successfully attracts Millennials with the right channel mix, featuring inspiring and entertaining brand expressions.
Gucci’s success has been partly because they have taken the time to understand how their Millennial audience wants to engage with them. Be on the digital channels they use (Instagram, Message & Chat apps, Social Video, Pinterest, Snap etc). Make sure your content is easy to access, authentic, inspiring and entertaining.
Above image: Gucci successfully attracts Millennials with the right channel mix, featuring inspiring and entertaining brand expressions.
Make transactions easier, quicker, personalized and more joyful.
Make transactions easier, quicker, personalized and more joyful.
Make transactions easier, quicker, personalized
and more joyful.
NET-A-PORTER is a global online multi-brand retailer focused on unparalleled customer service. They offer a seamless, personalized shopping experience across mobile, tablet, telephone, email and physical packaging.
Ordering and delivery feels like a delightful experience, with unboxing regularly getting posted on social media.
Online merchandising, stock visibility, and checkout experience are seamless, with next-day delivery and quick, easy returns.
Above image: NET-A-PORTER's personalized packaging.
NET-A-PORTER is a global online multi-brand retailer focused on unparalleled customer service. They offer a seamless, personalized shopping experience across mobile, tablet, telephone, email and physical packaging.
Ordering and delivery feels like a delightful experience, with unboxing regularly getting posted on social media.
Online merchandising, stock visibility, and checkout experience are seamless, with next-day delivery and quick, easy returns.
Above image: NET-A-PORTER's personalized packaging.
Have others tell your story. User-created content is often more memorable and more likely to drive purchase.
Have others tell your story.
User-created content is often more memorable and more likely to drive purchase.
Encourage and amplify user generated content by creating campaigns with shareable content at their heart.
Combine these campaigns with influencers & celebrities to create benchmark social content, and ensure you build intrinsic shareability into both the campaign idea and the campaign channel.
Above image: #mycalvins campaign successfully put Calvin Klein on Millennials radar.
Encourage and amplify user generated content by creating campaigns with shareable content at their heart.
Combine these campaigns with influencers & celebrities to create benchmark social content, and ensure you build intrinsic shareability into both the campaign idea and the campaign channel.
Above image: #mycalvins campaign successfully put Calvin Klein on Millennials radar.
Encourage and amplify user generated content by creating campaigns with shareable content at their heart.
Combine these campaigns with influencers & celebrities to create benchmark social content, and ensure you build intrinsic shareability into both the campaign idea and the campaign channel.
Above image: #mycalvins campaign successfully put Calvin Klein on Millennials radar.
Communicate the sustainability
of your products.
Communicate the sustainability
of your products.
Communicate
the sustainability
of your products.
Sustainability is central to Millennial and Gen Z’s socially responsible values. Brands that are transparent about their impact on the world are highly valued by this generation. Find ways to highlight sustainable aspects of your product.
Above image: Stella McCartneys world of sustainability.
Sustainability is central to Millennial and Gen Z’s socially responsible values. Brands that are transparent about their impact on the world are highly valued by this generation. Find ways to highlight sustainable aspects of your product.
Above image: Stella McCartneys world of sustainability
Sustainability is central to Millennial and Gen Z’s socially responsible values.
Brands that are transparent about their impact on the world are highly valued by this generation. Find ways to highlight sustainable aspects of your product.
Above image: Stella McCartneys world of sustainability
Connect your brand with art and culture.
Connect your brand with
art and culture.
Jonathan Anderson, Creative Director of Spanish leather brand Loewe has focused on authentically tying the brand to art and culture. For their Miami store they imported and Installed an 18th century stone granary building from Portugal.
Create genuine artistic expressions of the brand which can be based around the location, beliefs or heritage of the brand. This maximizes the potential to take your brand from functional to iconic.
Above image: The Loewe Store Miami.
Jonathan Anderson, Creative Director of Spanish leather brand Loewe has focused on authentically tying the brand to art and culture. For their Miami store they imported and Installed an 18th century stone granary building from Portugal.
Create genuine artistic expressions of the brand which can be based around the location, beliefs or heritage of the brand. This maximizes the potential to take your brand from functional to iconic.
Above image: The Loewe Store Miami.
Create inclusive spaces where people
can relax and be inspired.
Create inclusive spaces where people can relax and be inspired.
Create inclusive spaces where people
can relax and be inspired.
Today’s luxury brand retail spaces are less about creating exclusive and imposing temples for customers to worship a brand, and more about designing comfortable yet inspiring places for audiences and brands to connect.
To appeal to the new generation these spaces should be designed to be inclusive, acting as an extension and manifestation of a brands values, and creating a place were people can relax and enjoy.
In addition, many brands are augmenting these physical spaces with carefully crafted yet simple digital experiences that seamlessly and usefully connect physical and digital.
Above image: The Line in Los Angeles is more like a home than a store.
Today’s luxury brand retail spaces are less about creating exclusive and imposing temples for customers to worship a brand, and more about designing comfortable yet inspiring places for audiences and brands to connect.
To appeal to the new generation these spaces should be designed to be inclusive, acting as an extension and manifestation of a brands values, and creating a place were people can relax and enjoy.
In addition, many brands are augmenting these physical spaces with carefully crafted yet simple digital experiences that seamlessly and usefully connect physical and digital.
Above image: The Line in Los Angeles is more like a home than a store.
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