Havas Market’s Post

With the incredible purchasing power that Next Gen (Gen Z & Millenials) hold in the luxury spending category, brands aiming to reach this audience can often find them in digital spaces. 💍 📱 Read on to learn more about winning in luxury eCommerce in Havas Market's latest white paper! #MeaningfulShoppingExperiences

Bain & Company's latest #luxury market analysis with Altagamma forecasts that the Global Luxury Market will hit a record €1.5 trillion in 2023. Generations X and Y, currently in their prime earning years, form the majority of luxury spending and are central to income growth in the short term. Meanwhile, Generation Z is leading the way in social and cultural shifts, influencing the values of other generations. They have a pronounced preference for authentic experiences and a search for meaning. By 2030, Gen Z is expected to make up 25-30% of luxury market purchases, with millennials (Gen Y) contributing 50-55%. To succeed, brands must adeptly handle the increasing multigenerational complexity, catering to the varied demands of a diverse consumer base. Luxury Market Study (https://lnkd.in/ejFQ4PHF). Picture: DALL-E. #luxury #retail #travelretail #airports #2030vision #genz #millenials

👀 The world of #luxury retail is experiencing a fascinating transformation. While established brands still cater to their loyal clientele, new generations of discerning shoppers are entering the scene, demanding personalized and digitally-led experiences — so much so that #Millennials and #GenZ will account for 75% of luxury goods buyers by 2026. To thrive in this dynamic landscape, luxury brands must understand the nuances of different shoppers and leverage technology to provide the desired experience. This guide highlights different types of shoppers that will be crucial for growth in 2024 and what brands can do to meet their needs 👉 https://lnkd.in/dxVphxhm

Gen Z and Gen Alpha at the Forefront For the next generation of luxury buyers, being seen isn’t just about the physical world but also their digital personal expression. These audiences are shaped by their digital upbringing. The result of the algorithmic echo chamber, and the rise of ideological identity means that for gen Z in particular, they hold strong world views and expect brands to do the same. They are less preoccupied with status and exclusivity and instead see access, authenticity and greater self expression as meaningful drivers. Gen Z and gen Alpha’s constant connectivity exposes them to luxury lifestyles earlier, with gen Alpha beginning luxury shopping at 15, compared to gen Z’s at 18. By 2030, the luxury market is predicted to expand to 500m customers, driven in part by the ballooning speeding power of these audiences. Whilst the wealthiest 2% of the planet (who skew 45+) accounted for 40% of luxury spending last year, millennials through to gen alpha accounted for all growth in the sector. All of it. Some traditionalists may scoff at the idea of targeting lower frequency luxury consumers, but it’s worth understanding that these emerging luxury brand shoppers account for a whopping 50% of the luxury brand market. Nurturing these audiences, understanding and segmenting them by needs and adopting nuanced strategies will ensure the staying power of next generation luxury. -Emily Gray

The #luxury market is undergoing a seismic shift, and it's all thanks to Gen Z. Today, the younger generation is redefining what it means to indulge in luxury. By delaying #discretionary purchases and prioritizing experiences over material goods, we’re seeing Gen Z make fewer impulse buys and more thoughtful investments. This customer set also expects environmental and social responsibility from their favorite brands, demanding transparency and ethical practices. So, what does this mean for the future of luxury #retail? → Personalization Will Be Key: Brands must offer products that can be tailored to individual preferences, such as custom scents, personalized #fashion or bespoke experiences. → #Sustainable Practices Are Non-Negotiable: From sourcing materials to packaging, every aspect of the supply chain will be scrutinized. Brands that fail to meet these expectations will lose out. → Digital Engagement Is Crucial: Gen Z lives online. Brands need to engage with them where they are - on social media platforms and #digital marketplaces, leveraging analytics to understand their preferences and behaviors. The luxury market is not just being reclaimed by younger generations; it's being redefined. Is your brand adapting to meet the demands of Gen Z? We’re here to help you navigate the changing luxury landscape and prepare for the next generation of wealth. Reach out today: https://lnkd.in/g7QW_QZr

As the global population ages, luxury brands face a unique opportunity to appeal to an older demographic that possesses both wealth and a refined taste for luxury. This age group, typically overlooked in favour of younger consumers, is notably loyal and looks for meaningful, high-quality products and experiences. Successful engagement with these mature consumers requires a deep understanding of their desires for tradition coupled with modern convenience. Brands that skilfully blend these elements can capture and retain this valuable market segment. Strategies should include personalised communication, accessible luxury services, and products that emphasise comfort and elegance. Showcasing legacy and craftsmanship can resonate well with these consumers, who often appreciate the story behind their purchases. This may be an unpopular viewpoint, but the older boomer generation of consumers are more like their Gen Z counterparts in how they consume luxury than brands are willing to admit. Adjusting the approache to address the values and lifestyles of older luxury buyers not only enhances brand loyalty but also secures a customer base that values longevity over fleeting trends. Learn how HNW clients make buying decisions https://lnkd.in/gT5V36qR. #LuxuryMarketing #ConsumerBehaviour #AgeingConsumers #BrandLoyalty #LuxuryLifestyle

I am thrilled to announce the completion of my thesis, “The Luxury Consumer Paradigm: Navigating Generational Shifts for Long-Term Brand Loyalty.” 🎉 Generation Z is at the forefront of reshaping the luxury goods industry, forecasted to account for 25% to 30% of luxury market purchases by 2030 (Bain & Company). Before Generation Z, it was Millennials shifting the landscape. Before Millennials, it was Generation X. There will always be an upcoming luxury consumer challenging the traditions of long-standing luxury brands. To prevent falling behind, brands must continue reconstructing their strengths in a way that resonates with the next-in-line generation while continuing to nurture their relationship with already established clientele. The discourse on evolving consumer behavior, shifting preferences, and generational divides in the luxury industry has raised a crucial question: How can a luxury brand align its marketing mix to cater to all generations within its consumer base? My thesis delves into this dilemma, proposing a novel approach to luxury consumer segmentation using the Enneagram of Personality. Personality types remain consistent across generations, offering a robust approach for luxury brands to connect with their diverse consumer base by understanding their desires, fears, and motivations. This segmentation is the foundation of a proposed framework that guides a luxury brand through establishing its marketing strategy. I would like to express my heartfelt gratitude to my thesis committee, Alessandro Cannatà, Carin Wightman, and Roberta Demesko, for their invaluable mentorship and professional expertise. I am also deeply thankful to Roberta Demesko and Katie Miller for generously sharing their insights and experiences from the luxury industry, which greatly enriched my research. Visit https://lnkd.in/gtGKNmrk to view my process book, providing an in-depth breakdown of primary and secondary research, key findings, and the Luxury Generational Loyalty Framework. #lxmt #luxury #scad

Food for thought📌 I've just read a very interesting piece by McKinsey & Company: "Why Courting Aspirational Luxury Consumers Still Matters". (It was so insightful that I thought it deserves a post longer than I usually do on LinkedIn.) An unusual segment, rarely tackled when it comes to Real Estate industry - yet I find that in many cultures (markets) it could be a source for serious consideration and growth opportunities. Luxury brands are pivoting towards high-net-worth individuals and ALCs are often overlooked even though they represent no less than 50% of the luxury market's value! Can this be true!? It would put on the table a big question mark on who we are targeting and who actually is buying. (The survey conducted was for fashion brands, but I have no doubt that a similarly high % would be appearing across luxury products and industries.) Who Are These Consumers? Surprisingly, 60% of ALCs are aged 35 or older. ALCs are a diverse group, spanning from Status Seekers and Socialite Spenders to Quality Seekers etc. Each group has unique preferences and spending habits, making a one-size-fits-all approach ineffective. Despite popular myths, ALCs are not just loyal to a few brands—they love discovering new ones that offer better quality, trendiness, and a perfect fit. The luxury real estate market can learn from these insights. Aspiring buyers in real estate would likely be often linked to Status Seekers category, but for sure there are many of those that value sustainability, quality, and engaging narratives. #LuxuryRealEstate #ConsumerInsights #MarketTrends #CustomerExperience #Targeting #Marketing

Do you know why Luxury Retailers Are Opening More Stores At International Airports? In today's market, catering to digitally savvy consumers—particularly Millennials, Gen Z, and the emerging generations—requires more than just traditional brick-and-mortar strategies. These demographics seek a seamless omnichannel experience that combines the convenience of digital shopping with the tactile engagement of physical retail. Airports present a unique opportunity for brands to connect with these consumers beyond their screens, fostering meaningful interactions and brand experiences in a physical environment. Read this Forbes story for Yukun Bi's insights on the matter! #travelretail #luxurymarketing Worldwide Partners, Inc.

[Luxury Shopper - Part 1] WHAT ARE THE TYPES OF LUXURY SHOPPERS? 🛍️ . . Today's #luxury consumer is sophisticated, #digitallysavvy, more selective about the brands she buys. Brands that have historically relied on heritage and #exclusivity must now navigate a "#newluxury" that includes #personalization, technological #innovation, and authenticity, while maintaining the traditional expectations of the brand. . . There are four primary categories of #luxuryshoppers: window shoppers, personal stylists, occasional splurgers, and big spenders. . . AUDIENCE: #GenerationX and #Millenials . . © https://lnkd.in/gkBmnX-u . . #ScribeDiaryPen #SDPLuxuryShopper #LuxuryShopper #LuxuryShopperTypes #LuxuryConsumer