Posted by: Cody Sanger in: Consumer Lifestyle -
With an estimated annual spending power of $200 billion, millennials represent a lucrative future for consumer brands. However, this demographic doesn’t appear interested in acquiring the status symbols of their parents or grandparents: the house, car, watch or designer handbag. Generally, millennials value time over money, experiences over things; in one survey, 78 percent of this group chose to spend on a life experience or event rather than a tangible item. That said, the future is far from dim for luxury brands.
Stories that resonate and involve
Millennials are seeking compelling stories. They want to know how their food is grown, who makes their clothing, and where their goods are sourced. Stories enrich their interactions with a product or service, instilling greater meaning to their purchase decisions. And becoming part of the story is even more powerful.
Among millennials, the affluent segment is most likely to post online, sharing life experiences and influencing social circles. It’s not static pictures of products that generate conversations, but images of a dynamic lifestyle. These windows into travel off the beaten path, dinner in the farm fields or fashion serving a function, to name a few, reflect a new sense of luxury.
Permeating social channels
Luxury brands have an opportunity to cultivate loyalty among millennials by telling their stories and doing so engagingly and authentically. Adopting a multifaceted approach is all but required to reach this digitally savvy sector, which means translating a story into conversations, images, video and experiential opportunities (think Twitter, Facebook, Instagram, Pinterest, etc.). In research conducted by Deloitte, 49 percent of in-store sales were found to be influenced by digital channels.
Longtime luxury brand Burberry has made significant inroads with millennials by bridging the digital and physical divide. Embracing its story as a fashion icon of the 1950s and 1960s, Burberry has reinforced its trendsetting status by delivering a seamless customer experience at every touch point.
Immersive multimedia content associated with Burberry’s website is echoed in its flagship London store. Campaigns, such as The Art of The Trench, document a customer’s journey and relationship with the product online, capitalizing on millennials’ reliance on peer reviews and experiences. Brand partnerships, such as a collaborative music station with Apple, have also extended Burberry’s influence and reach.
Luxury brands have stories to tell. To stay relevant and entwined in the minds of millennials, these brands must reach this market through a combination of channels and continuously reimagine their delivery. Through constant innovation, brands can keep millennials engaged and build long-term relationships.
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