COP III - Research & Quotations - Chapter 1: Millennials as Luxury Consumers

Forbes

By 2025, Bain projects that Millennials and Generation Z will account for 45% of the global personal luxury goods market. While that presents great opportunities for many brands, the challenges are also considerable because Millennials think and shop differently from previous generations.

What this signals for luxury brands is that consumption has a different meaning for Millennials. "Consuming products and brands is not just a way to say who you are but a way to define who you are," D'Arpizio notes. "This is why Millennials are more engaged than previous generations with self-expression."

Nor are the generations below and above them. While Generation X emulated the way Baby Boomers consumed, the Millennial mindset has become cross-generational, which D'Arpizio says is "influencing the evolution of the whole luxury customer base.”

https://www.forbes.com/sites/msolomon/2017/06/20/how-millennials-will-reshape-the-luxury-goods-market-bain-luxury-report-2017/#5065515f2f86

CNBC

"Every generation brings its own trend, its own taste, its own way of living," said Jean-Claude Biver, chairman of luxury watchmaker Hublot. "The younger generation is more disruptive.”

Despite their differences, millennials' penchant for discovering new brands, high-quality goods and a company's heritage make them natural luxury consumers, said Matthew Woolsey, executive vice president of digital at Barneys New York.

https://www.cnbc.com/2015/02/18/-redefine-luxury-and-the-stakes-are-high.html

The Robin Report

To say that the luxury consumer landscape is becoming more complex is an understatement. In fact, where there was once one typical luxury consumer, there are now many different types, and they all want unique things from luxury brands.

1. Income. The luxury consumer of the past was the ultra-rich. And while the extremely wealthy still represent an important segment of luxury consumers, they are no longer the only audience in town. In fact, upwardly mobile middle class consumers make up a significant and rapidly growing slice of the market.  While these aspirational consumers may not be able to afford a $10,000 bag, they can afford a $300 clutch. Thus, it makes financial sense for luxury brands to court these less wealthy but more ubiquitous consumers with one set of products, while also offering more exclusive, limited edition products for the super-rich.

2. Age. Luxury used to be dominated by relatively older consumers.  While they are still part of the picture, younger consumers, especially Millennials, are making up an increasingly large share of the luxury market. Some brands, such as Fendi, Tory Burch, and John Varvatos see about 50% of their consumers under the age of 35, according to the survey.These younger consumers have strong social justice values, are extremely Internet and social media savvy, and as a result, have different expectations for their relationships with brands. They expect a seamless experience between online and offline, they expect to have an ongoing dialogue with the brands and they truly care about what values a brand stands for.

http://www.therobinreport.com/the-new-luxury-consumer-think-multiple-consumers/

David Millán Planelles

The millennial approach is also a characteristically multi-platform approach. All of this suggests that millennials have the ability to have an impact and influence the strategy of luxury firms more than the preceding generations.

Contrary to common perception, millennials do not seem to hold different notions in their understanding of luxury, which remains firmly linked to the perception of quality.

https://observatoriodelmercadopremium.ie.edu/wp-content/uploads/sites/59/2013/11/Luxury-surrenders-to-Internet-The-role-fo-the-Millennials_V2.pdf

Luxury World: The Past, Present and Future of Luxury Brands

Young affluents - roughly corresponding to generation x and millennial generations - will play an increasingly important role in the target market for global luxury markets over the next 10-20 years.

Global luxury marketers have gotten used to the passions and nuances of the maturing baby boomers after so many years of targeting this generation…Now they have a new challenge to appeal to the young affluents who have different ideas about luxury and different priorities in how they spend their wealth. (unitymarketingonline.com, June 25 2007)

https://books.google.co.uk/books?id=Vo0CeOC0Z-IC&dq=‘luxury+purchases+are+highly+sensory+in+nature,+which+is+clearly+difficult+to+replicate+in+the+online+world%27&source=gbs_navlinks_s

Digital Marketing Strategies for Fashion and Luxury Brands

The millennial generation is defined as a demographic cohort between the early 1980s and early 2000s. This generation differs remarkably from previous groups, as the millennial perception of communication is that it is conveniently available and instant; therefore, obstacles such as time or geography do not impinge upon the presence of technology. 

https://books.google.co.uk/books?id=z Y7DwAAQBAJ&dq=obstacles+such+as+time+or+geography+do+not+impinge&source=gbs_navlinks_s

The Age Of Fashion Massclusivity

In the past two decades luxury brands have constantly explored new possibilities of becoming more affordable so that they can appeal to the masses.

https://www.notjustalabel.com/editorial/age-fashion-massclusivity

Digiday UK

As retailers continue to replicate luxury looks, millennial shoppers ultimately feel less compelled to shell out hundreds of dollars for a designer blouse when they can get a similar style on the cheap. Instead, they create their own high-low looks, mixing fast fashion pieces with select luxury products, which increasingly have become accessories.

https://digiday.com/marketing/driven-fast-fashion-millennials-choose-luxury-accessories-clothing/

Campaign

Both incredibly wealthy and less-affluent consumers will always want to own their own little bits of luxury.

https://www.campaignlive.co.uk/article/luxury-brands-need-broaden-selling-unattainable-products-luxury-moments/1361387