50% of the luxury market will be held by millenials by 2025*
68% of Millenials are looking for integrated, multi-channel experiences**
62% of 18-26 year olds prefer to spend $10.000 on an experience; comparated to 38% for a product**
* Figures from one of our clients
Born between 1980 and 2000, millenials are the generation that grew up in the digital age. They are adept at uninterrupted connectivity, accessibility to everything (or almost everything), and a world where everything goes faster and faster. They are creating a new way of consuming, forcing Luxury Goods companies to constantly reinvent themselves to meet their high standards. But if today’s Luxury Houses are ready to bow to these young people, it is because they will represent 50% of the Luxury Goods market in 2025 according to the consulting firm BCG*.
New consumers
Millennials, the new luxury customers, have a different way of consuming, which cannot be imagined without digitalization, whether they consult products or buy them online or in shop. They are adept at ROPO (Research Online Purchase Off line), switching from one channel to another and require brands to deploy an omnichannel presence since “68% of Millenials are in demand of integrated and multi-channel experiences”.
Their way of consuming also involves image and attachment to the brand. This is a more committed generation, which defends its values and convictions, which they wish to find through their favourite brands. The influence of millennials is such that they are increasingly leading brands to rethink their social and environmental communication strategy.
High expectations
These new luxury consumers cultivate their personality and want to feel unique. Today, the search for a unique consumer experience goes beyond the interest in the product alone: “62% of 18-26 year olds prefer to spend $10,000 on an experience, as opposed to 38% on a product “**.
Their expectations are mainly focused on personalisation, the search for a distinctive and tailor-made experience. These young consumers want to build a co-creative relationship with the brand, developing a sense of belonging and trust. The consumption of luxury products by millennials should lead them to express their personality. They are encouraging brands to think outside the box: leave stereotypes behind and make room for inclusion, and encourage Luxury Houses to make a stronger commitment to eco-responsible and ethical policies and strategies.
An adapted strategy
To attract these new customers, Luxury Houses are deploying their energy to innovate and reinvent their customer experience. It has become essential to take the digital turn and deploy an omnichannel strategy to reach them wherever they are, to show adaptation and consideration for their customers and their convictions. A customer-centric approach makes it possible to position sales representatives at the heart of a unique experience.
Digitalisation also enables the company to refine its knowledge of customers’ tastes through the collection, enrichment and activation of this data to ultimately offer them a seamless, tailor-made and fully personalised experience. For the experience to be harmonised, omnichannel is the key, bringing together physical and digital in every respect: adapted communication, stock management to meet demand, but also in the customer relationship so that it is seamless throughout the customer’s life.
The challenge is therefore to combine heritage and new technologies to offer a new sales ceremonial in shops and online in line with the new expectations of young consumers.
Octipas, a subsidiary of the ChapsVision group, will help you to implement a 360 degree strategy to meet your current and future challenges.