In a series of articles Priority explores the future of luxury – and how premium brands can keep up with the changing consumption landscape.
Millenials and Generation Z are transforming the meaning of luxury. The days when luxury was defined by quality and craft are gone – younger consumers expect premium brands to connect with their interests and values and be present across offline and online channels.
Here are five forces shaping luxury tomorrow.
1. Getting personal
In a strive to demonstrate uniqueness on Instagram and other social platforms, young consumers mix premium with lower priced items and rare vintage finds. Brands offering personalized items and limited editions will meet the consumers’ want for personal expression.
2. Connecting emotionally
Buying decisions today are closely tied to the consumer’s identity and thus more emotional than logical. Brands will be chosen based on their ability to appeal, and live up to, consumer values and interests. And brands that dare to take a stand will gain loyal fans and ambassadors.
3. Being real
Young consumers are critical of advertising and crave the real. They expect their favorite brands to be genuine, transparent and trustworthy. This demand for transparency is also fueled by the younger generation’s increasing demands on companies to act sustainably.
4. A full brand experience
Luxury is no longer merely about the product but a hunt for the best experience as a whole – from initial interest to purchase. Brand preference is determined by a number of interactions, across online and offline channels.
5. Willing to engage
Tired of ads, young consumers look to friends and social media for guidance and approval. They want to engage with their favorite brand, to be part of a community united by common interests and values – and they expect companies to be there to connect digitally.
Priority Insights explores current topics within business and branding.
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