Millennials are becoming the most valuable luxury consumer segment. Together with the younger Generation Z consumers, Millennials are indeed making up more than 30 percent of all luxury spending and generated 85 percent of the global luxury growth in 2017.
Luxury brands zooming on millenials
With an eye for uniqueness, Millennials are not easy to please at all. As the paradigm is substantially different for them, luxury has its own value in their life. They are the growth engine, and the new power purchasers of luxury. Bain & Company predicts that Millennials and Gen Z will account for nearly 50% of the total luxury goods sales by 2025, bringing the value of the global luxury industry to €290 billion ($356 billion).
To stay relevant, luxury brands need to work on their offerings and experience. Gucci invited a committee of millennial advisors to discuss how to best market their luxury goods to them. Gucci’s digital success also plays an important role in capturing their attention and getting Millennials’ dollars. Its internet leading strategies, through witty Instagram stories, and advertising campaigns with millennials has managed to always integrate digital generation. Its revamped stores with a digital connection, along with memorable in-store experience to present a true omnichannel and best customer experience are also adding to the success factors.
Overall, Gucci has woven a digital culture that incorporates all strategies catered for millennials and has re-defined its relationship with consumers as holistic.
Millenials expectations from luxury brands
In an ever-changing digital era where Millennials want to shop at their convenience, anytime and anywhere, they seek to be part of a brand culture where aesthetics play an important role.
In order to be a part of the Millennial-driven industry, luxury brands need to cater for:
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