How Luxury Brands Are Marketing to Young Consumers

Multiple luxury brands are majorly shifting strategies to appeal to young consumers, who don’t automatically value them because of their history…

Luxury brands are looking towards the future by focusing in on Millennials. The generation has the potential to be the largest spending group in history, and by 2020 the oldest Millennials will be entering their peak earning years. But they’re facing an uphill battle with these young consumers, who don’t automatically think a high-end heritage brand is cool because it has a high price tag. According to Ypulse’s research, the majority of 13-33-year-olds say that they are not loyal to fashion brands and 83% say they don’t care what brand an item of clothing is, as long as they like it. We’ve also found that Millennials and teens are more drawn to the words "High Quality" and "Durable" when purchasing items and are not as impressed when items are described as "Exclusive" or "Luxury." The definition of luxury has shifted for young consumers, who aren’t as likely to value physical belongings, and often see conspicuous consumption as wasteful or unnecessary.

Luxury brands are shifting to cater to the generation who values “über-luxe” travel over costly jewelry, shoes, and bags. Brands are turning to new influencers—from the Instagram-famous to video game characters— to form relationships with Millennials before they become the core luxury demographic. Here’s a rundown of how some of the biggest names in the business making major changes to appeal to young consumers today:

Tiffany: Embracing Digital Marketing

Millennials aren’t being charmed by Tiffany’s “old world luxury.” The luxury jewelry brand has experienced decreasing sales over the past six straight quarters, recently seeing its sharpest decline since 2009. Millennials’ lack of interest…

 
 

Want to talk to us about the article
or dive into a custom study?


The Newsfeed

“I observe holidays and religion-based traditions but am more connected to it as a culture than as a religion.”—Female, 27, MA

Chinese youth have a “selfie obsession” that’s changing beauty standards and creating a new tier of celebrity. The Influencer Effect is full blown in China, where young consumers are beautifying their selfies via filter apps like Meitu and plastic surgery—all in the quest to look more like wang hong, their internet celebrities. One influencer, HoneyCC, argues that “Selfies are part of Chinese culture now, and so is Meitu-editing selfies.” But some say the trend is pushing the population to become more homogenous by favoring certain features, and headlines have lashed back against the whitening of skin prevalent in social apps. (The New Yorker)

Eighty-one percent of Bustle, Romper, and Elite Daily’s Millennial readers say social media is the best way for advertisers to reach them. Bustle’s latest questionnaire also found that 40% of their 18-34-year-old readers prefer Instagram for brand communications, followed by trusted websites, email, and online articles. Some other fun insights: Over half believe that a company should give back, instead of just turning a profit, and 49% think “companies should do more to protect the environment.” (Adweek)

Drug use is down among teens—except when it comes to marijuana and vaping. From the 1990s to 2017, the percentage of teens who said they’d been drunk dropped from 46% and 58%, and those reporting they’ve smoked cigarettes from 26% and 17%. However, marijuana use increased for the first time in seven years in 2017, while vaping is up as well, with at least 19% of high school seniors, 16% of sophomores, and 8% of eighth-graders saying they’ve vaped in the past year. (LATimes)

Two modern dating shows are coming to Facebook Watch. The first “unscripted dating show” from SoulPancake, Love & Longitude, is shot on iPhones and shows two potential love interests’ relationship blossoming across FaceTime, social media, and other digital interactions. The second dating show from Machinima, Co-Op Connection, plays into the esports craze. One bachelor gets to pick his partner based on their personality—and their skills at the videogame, PlayerUnknown’s Battlegrounds. (tubefiltertubefilter)

Some cities are past their “peak Millennial” populations, as the generation increasingly finds new digs in the suburbs. Boston, Chicago, and Los Angeles all reached their highest Millennial population in 2015, and New York and Washington D.C. are showing slowing Millennial growth, according to U.S. Census data. Meanwhile Chicago’s suburbs and others have seen an uptick in their young adult populations—another Millennial myth debunked. Which urban centers are still attracting the demo as they age up? “Tech hubs” like Seattle and San Francisco. (Time)

“Crochet and knitting are very relaxing, therapeutic, and have tangible results."—Female, 31, AL

Sign Up Now

Subscribe for premium access to our content, data, and tools.

Already a subscriber? Sign in.

Upgrade Now

Upgrade for full access to the best marketing tools for understanding the next generation.

View our Client Case Studies