Seducing the hyperlinked ‘Millennials’ is the challenge facing luxury brands currently in a decelerated market, but this skeptical public forces them to rethink their strategies.
News site: Свет в океане 2016
The Millennials, they born body early 1980s and 2000. Goldman Sachs estimated at 92 million in the US alone, beating the “baby boom”.
They grew Internet hand, saw the birth of smartphones and the collaborative economy. Many studies claim that this creates at least some of them, different from their parents’ expectations, which at his age had higher income and less debt.
Trend towards consumerism
“The question is whether they will have the same purchasing power than previous generations in terms of consumption of products and luxury goods,” said Nick Pope, an analyst at consultancy Deloitte, at a conference on the luxury industry in the British newspaper The Financial Times in San Francisco.
A study by Deloitte sees in the ‘Millennials’ an opportunity for luxury brands, but warns that this requires “a high investment”. These customers are less loyal than previous generations and “its commitment to digital technology exposes them to more sources of information and to higher influences.”
The luxury sector can not ignore this generation that entered the era of slower economic growth. US jeweler Tiffany & Co. provides a grim picture and Burberry fashion house, he embarked on a savings plan.
“The luxury sector had a major drawback, because there was a market of people who spent systematically, and that market no longer exists,” he told AFP Sarah Quinlan of MasterCard Advisors, within the framework of the conference in San Francisco.
But the new rich countries like Russia or China or oil nations, where growth slows, could pass the baton to the Millennials.
That’s why Burberry launched in recent years a digital strategy, example for the sector. Louis Vuitton also seeks to accelerate his and under it last year hired Ian Rogers, an executive of Apple.
Luxury brands are betting on social networks plagued youth, as the case of Instagram and Snapchat, which have signatures presence as Burberry, Louis Vuitton and Tiffany.
Being on the web and on social platforms has become a necessity for brands because often young consumers prefer to search for information on your phone before you ask a salesperson.
But a problem they have houses like Tiffany & Co., for example, is for young people representing “the luxury of an ancient world that does not fit their lifestyle or their values,” said Neil Saunders research society Conlumino tion.
To attract them, “I do not think the solution is the presence in social networks,” said Sarah Quinlan. “The essential thing is to have something relevant, and do not think (industry groups) make too much effort to manage their brand so that between the lifestyle of a Millennial”.
“It’s not necessarily a revenue problem” if Millennials have little presence among customers of the luxury sector, he said.
Nick Pope, brands must adapt to change and to “propose something that will add value” to their products.
This could involve the transformation of commercial premises in a place where also can come and hang out, drink coffee; or the value-added aspects such as history, manufacture, or ethics of products, items that more and more sensitized consumers.