Does "luxury" still have meaning for Millennials  ?

Does "luxury" still have meaning for Millennials ?

by Pininvest Analysis

Luxury at the crossroads on pininvest.com

  • 22 constituents
  • 5.8% 1y performance
  • 34.6% volatility
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Demographics and retail formats in a tightly interconnected world create entirely new challenges for luxury brands

“Millennials” are the much sought-after age class of clientele which will command revenue in the luxury category for years to come.  To target the group, defining statement are bandied around about the value attached to emotional bonding and the supposed preference ot its members for living experience over owning things

Reflecting this perception, marketing strategies tap the rich history of their brands and today’s fine craftsmanship – while more of a refresher than a truly original story, the approach dovetails with the positive image nurtured over time and will be a powerful differentiating factor between the famous and the also-ran

Marketers cannot ignore however that the strategy is also an encouragement for small competing brand names, coming out of nowhere, to source a heritage (where none existed) by stirring national memories, and tapping rich local arts and crafts histories

Compounding the risk of ‘splintered’ luxury perceptions, the retail landscape is in flux: flagship stores are there to stay as incontrovertible fashion statements but the on-line presence – recognized today as an indispensable complement and expected by the new generations - walks the thin line between reputation and worldliness

Nurturing a brand is a never ending effort and the marketing strategies to meet the expectations of a clientele in constant renewal remain tentative – how the major luxury groups will meet the challenge will be a key differentiating factor moving forward