Your customers have been satisfied, perhaps for centuries, but you’ve noticed the demographics or characteristics of your customers evolving. As socierty evolves, so does the luxury consumer, their needs and expectations.
Newer luxury consumers are reshaping industries with digital savviness, sustainability focus, and love for unique experiences. They value authenticity, influencer recommendations, and redefine luxury as more than just price tags. For them, it's about the story, values, and convenience. As luxury evolves, brands must adapt to these changing preferences to stay relevant, engaging, and of luxury status.
The shift in behaviour from millennial-cusp and Gen-Z consumers can be attributed to shifts in demographics, values, technology, and cultural influences. Here are some key differences in their behaviours:
Digital Natives and Migrants: The modern luxury consumer swiftly conducts a digital investigation of you and your competitors as standard in their purchase decisioning making process; your online reputation as a luxury brand has never been more important.
Delving in to your online reputation through your website, social media, review platforms, UGC, community voice, media coverage, google maps and vlogs as standard.
Sustainability and Ethical Concerns: Most place a higher emphasis on sustainability and ethical practices. They are more likely to support luxury brands that communicate efforts to ethically source and promote social responsibility - provided that the offering is equal, or superior to those that are not.
Authenticity and Individuality: A higher emphasis is placed on authenticity and individuality over traditional status symbols. Niche or emerging luxury brands that align with their values or offer unique products or experiences provide an extra layer of exclusivity.
Experiences Over Ownership: Excellerated by the pandemic, consumers are prioritising experiences over ownership. They may be more interested in luxury travel, dining, and other experiences rather than purchasing luxury goods. This trend has led to the rise of luxury travel and hospitality. Retailers must invest in their customer experience to attract and retain gen-z and millennial consumers.
Influence of Influencers: Social media influencers play a significant role in shaping the preferences of younger luxury consumers. They are more likely to be influenced by content creators and celebrities who endorse luxury products or experiences on platforms like Instagram, YouTube, and TikTok.
Rise of Rental and Second-Hand Market: Younger consumers are more open to renting luxury items or buying them from the second-hand market. This is partly driven by sustainability concerns and a desire for affordability (to consume more).
Convenience and Accessibility: Convenience and accessibility are expected in all shopping experiences. Luxury retail should seek to offer options to buy online, pick up in-store, easy returns, and 24/7 customer service as a minimum and go beyond with innovation.
Minimalism and Discreet Luxury: Some gen-z and millenial consumers prefer minimalistic and understated luxury items over flashy logos and conspicuous consumption. They may opt for luxury brands that focus on quality and craftsmanship without overt branding.
It's important to note that these behaviors can vary among individuals and may evolve over time. Luxury brands need to stay attuned to these changing consumer preferences and adapt their strategies to connect with younger and newer luxury consumers effectively.
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