Today, luxury is being redefined due to a number of emerging trends occurring across the globe. These new luxury trends have the power to reshape, redefine and shift our traditional views of luxury into a modern era. The following trends are causing major disruption:
The rise of the Affluent Millennial Generation
This group will take over as the largest generational segment in the luxury consumer market around 2018-2020. As a result of the millennials, gone are the days of ‘prestige’ and ‘social status’ as indicators of desirability in luxury brands. The millennial generation want authenticity, singularity, and most importantly a social value from the brands we choose to champion. It’s the millennial generation which are creating the disruptive economy.
The Connected under 35s
With roughly 55% of the world’s population now 35 years of age, we have a generation of people who have grown up connected. This generation is tech savvy, social savvy and are in control of the advertising messages they want to receive. To them luxury is more that an expensive clothing label or product. They want to be able to connect and relate to the brand on a much higher level than the traditional luxury market users.
The Asia/India Millennium Phenomenon
The growth of wealth in Asia and India has creating a mass class of wealthy people, all of which have a different take on traditional luxury and what they want out of their luxury brands. To these people, a luxury car may also need to include a diamond studded steering-wheel, or food that is sourced from clean environment outside their country. In this context, luxury is more much broader than the traditional definition.
Avalanche of luxury items
With lifestyle support devises (LSD’s) and the internet, people across the globe have the power to find luxury brands and services outside of the traditional means of expensive magazines. Today it’s the consumer who defines what luxury is and not the brand owners. People are searching for experiences, products and services on the net and via social media. They are not waiting to be told by an advertisement in a magazine what is prestigious, or luxury. Today, people are discovering their own luxury goods and services and most of these products and services would fall out of the traditional definition of what luxury is. With a flood of new mid- market and high-end luxury brands based on technology, health and convenience, today’s consumer has more choice than ever before.
The ‘I Am’ an individual
This phenomenon is now empowering consumers across the globe to become more individualistic, more experimental and bold enough to mix traditional luxury and non-traditional luxury together.
The growth of Affordable Luxury
Call it mass-tige, pop-luxe or just affordable luxury, the luxury market is being re-defined. Four years ago saving time would not have been seen as a luxury, nor would have been the use of fitness apps. Today one of the key areas of the new luxury market is affordable luxury. This could be time saving, or making time to connect with friends, though to eating an organic meal in a Chinese restaurant in Beijing, or a handmade Swiss chocolate purchased online and shipped to your country in 24hours.
How can luxury brands Adapt?
Luxury brands need to do more to connect with younger and new economy consumers. In today’s new luxury market, having a strong brand and great product is no longer enough. Luxury brands need to continually inspire consumers. Social media can provide a great platform in which to connect with new customer bases.
Companies need to refocus on their brands heritage, craftsmanship and uniqueness. This is critical if they want to stay connected with their market. With the millennial’s it’s less about the brand name and more about the holistic experience. It’s all about discreet luxury while continuing to provide a unique, personailsed experience.
The challenge for traditional luxury brands is they need to differentiate their portfolio in order to appeal to new consumers without alienating their core customer base. The millennial generation identify far more personally and emotionally with brands. They have grown up with brands on the internet and through social media. It is extremely important for luxury brands to realize that they must be viewed by their consumers as being ‘genuine’, and that they truly reinforces the personalities, values traits and causes that the customer projects.
Brands today must be engaged with their customers and be ready for two way communication, for luxury brands it’s no longer the push strategy it’s all about connecting and engaging with your audience.
Today, luxury it’s all about making life easier and more rewarding.