Luxury consumers are rapidly changing to the point that they barely mimic the same market from a few years ago. Luxury consumers are seen as anyone who falls in a younger generation, either Millennials (aged 25-38) or Gen Z (aged 18-24). To really capture this growing demographic, you'll need to adapt your marketing strategy by looking at the facts.
Male Millennials Spend Big
It's essential to focus on the massive male audience of luxury consumers because they're your primary demographic. Targeting men to buy Valentino shoes for women will be easy by advertising the positive reaction women will have as they receive them as gifts, especially during momentous occasions. Age 25-38 is the primary age bracket because they can flex their spending power.
While 62% of the luxury audience will be millennial men, females and the 55-64 age group will be more challenging to target. Instead of targeting women directly, it's smarter to present men with items they can buy their spouses as gifts. It's also fruitful to target men who are regular treaters, as that accounts for 34% of the millennial audience.
New-Age Consumers Prefer Experiences Over Items
While the term "luxury" does apply to expensive jewelry and handbags, Millennials and Gen Zers associate that verb with experiences and big-ticket items instead. Since the younger generations have difficulty affording homes, cars, and vacations, that is now considered a "luxury."
Regular treaters are more likely to buy big-ticket items than people who give to others or are occasional treaters. Focusing on items related to travel, cars, or houseware will benefit any brand. Even luxury fashion brands like Versace have created a homeware section that stocks plates, teacups, housecoats, soccer balls, slippers, and boxing gloves.
Added Clout Drives Buyers
Millennials that are regular treaters tend to purchase and experience multiple times a year because branded luxury maintains its importance to the consumer. Social media has made it possible to showcase their lifestyle. More eyes on the consumer mean more opportunities to flex on their wealth, power, or influence, and luxury does this successfully.
Luxury products are still popular with a social media audience because others will want to emulate influencers they respect. However, what is essential to the consumer is flexing their goods in a place that's also seen as luxurious, like a vacation spot.
If a brand can offer an unforgettable experience with their products, they're more likely to remain popular. For advertising campaigns, it may be fruitful to show influencers in expensive settings like a museum or resort to state that your brand compliments a new experience.
Affordable Luxury is the New Expensive
Affordable luxury sounds like an oxymoron, but it's one of the ways that plenty of luxury brands have targeted Gen Zers that don't have as much capital as their Millennial counterparts. If your brand has a luxury brand's look and appearance without the large price tag, more people will purchase said items and show them off on social media.
Using jewel colors or gold and black are associated with being rich in young people's eyes, likely because every brand they see uses this pallet.
Glitz over glamor is the new thing because the "nouveau riche" prefer to flaunt their wealth rather than give the presumption of it. Giving an item a coat of "luxury paint" will often give the impression that it's a high-quality item even if the price tag says otherwise. If others see the object as a luxury, that's usually good enough for the purchaser.
Stories and Narratives are King
At the end of the day, your consumers want to connect with a person rather than a brand, so your company's values need to match your customers. Luxury brands need to move out of their comfort zone, promote diversity, move online, and make their products accessible to a broader market. Even adding personalization to items can massively improve sales.
