Luxury Fashion, Beauty and Millennials

Back in 2017, Forbes Magazine released a report stating that, while there was a significant increase in the interest in luxury brands from Chinese and even UK millennials, the US millennials were lagging.

The report stated that “over one-fourth of the American millennials report no luxury purchases of $500 or more in the last 12 months, whereas the survey average was only 16%.” When asked why they were losing interest in luxury goods, the surveyed millennials (mostly those who are in fact pursuing careers in high-paying fields) responded that luxury signifies nothing but the marketers’ label and that the goods are simply overpriced.

How will brands attract consumers once again?

As Business of Fashion states, luxury brands used to have (and some still do) a goal of creating superior products and creating a sense of exclusivity. Now, they will need to adapt their strategy to younger generations, including both millennials and Gen Z-ers – generations that have a different set of values, which include authenticity, community as well as transparency. The thing is, smaller brands offer a much better in-store experience, and millennials appreciate this personal and personalized approach, not to mention that this is a tech-savvy generation that will probably opt for an online available and even more affordable alternative to the one offered by luxury brands, and it makes perfect sense.  Why wait for a high end shoe to become available at a hefty price when you can get a pair of gorgeous heels or high quality natural anti ageing skincare products at the click of a button, delivered in almost no time at all and without breaking the bank?

As Geof Cook says “it is more important than ever to have fewer physical stores that offer heightened experiences that can be shared. The stores should not ‘show and tell’ but bring like-minded people together”. Millennials are known as a generation who puts experiences above material goods, and they want the goods that they choose to buy to be a kind of a representation of their values and lifestyle. Therefore, they want to purchase from brands who share their values so that their possessions represent a kind of a manifestation of their personal views, and according to Rebeca Robins, brands that have thus far managed to align with millennials with their strong and distinct point of view are Gucci and Dior.

Another point of view  

While Vogue agrees that brands need to do everything in their power to provide an experience that will drive the millennial consumer away from the convenience of online shopping and back into the brick-and-mortar stores, Cook mentioned something about an ‘immersive shopping experience’ and it seems that certain luxury brands took the cue, and are in fact providing the most immersive experience of all -  being personally fitted for your garment by a designer and a team of couturiers – there isn’t much that can beat that. And it seems to be working as Vogue reports that, despite the current climate and millennials’ points of view, they have in fact been lured in by the pampering that countless hours of embellishing and putting a single garment together, fittings, and the 12-mont anticipation of a single couture dress provides.

It seems that even millennials aren’t immune to this sense kind of pampering and indulgence, and the estimate is that the number of millennial couture clients is in fact on the rise. Actually, the aforementioned Dior, who back in the day had over 20,000 clients, now has around 4,000, but their ‘buying capacity is formidable’. Millennials may not return to all luxury brands, but it’s safe to say that they will be increasingly interested in the haute couture experience, as it involves authenticity, a personalized experience and a sense of uniqueness that only a custom-made gown that takes hundreds of hours to make can provide.

A new approach

What was once so secretive – the creative process of luxury goods production, is now open for all millennials to see. Luxury brands now offer virtual tours of their ateliers, share their inspiration and creative process, thus offering the desired consumer group a glimpse into the ‘behind the scenes’ – something a millennial consumer values as it goes along with their desire for transparency as well as authenticity.

The future is millennial

This generation is becoming a true force to be reckoned with as it’s estimated that by 2035 they will be the most powerful consumer group in the world. Luxury brands need to ensure to return and stay in millennials’ good graces since if they lose them, they will lose it all. However, given that their disposable income will rise, once they get rid of student loans and become as successful as they’re anticipated to become, it’s safe to assume that they will be ‘sharing’ a portion of their disposable income with luxury brands. After all, as we grow older we do develop a taste for the finer things in life, so we can say, almost with certainty, that, while the luxury climate may not look as sunny as the brands would want it to right now, better times are definitely coming. Sooner or later, millennials will be the face of luxury.

All that the brands now have to do is be patient and begin to speak the millennial language – offer amazing experience, a personalized approach, ditch the ‘exclusive’ and let’s face it, somewhat snide attitude with the waiting lists and all, and do what Burberry and Louis Vuitton have done to adapt and get closer to this generation – offer goods in a variety or prices, collaborate with high-street brands, and even give the digital approach a chance – do whatever it takes as the survival of these traditional powerhouses lies in the hands of the millennial generation.

.Guest post written by Claire Hastings – Claire is a wanderer and a writer. She writes as long as she can remember, and she is very passionate about fashion, running, other cultures, and her cat.All photos by Lydz Leow via Unsplash