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 believe in a higher being, whether it takes the form of a god or it's more abstract like the universe.”—Female, 21, FL

An avocado-inspired chocolate is selling out fast, and Millennials’ obsession with avo is getting the credit—lest we forget the lattes and the proposals of the past. Waitrose’s gimmicky treat has a dark chocolate shell, a dyed green white chocolate interior and small chocolate “stone” sprinkled with cocoa for the center. The play on a traditional Easter egg chocolate is Waitrose’s best-selling product in its 114-year-history, selling out repeatedly since its recent launch. (The Independent)

Vacation companies that confiscate travelers’ smartphones are selling out their trips. The Wanderlust Generation isn’t just looking to travel, they’re looking to unplug—in spite of their penchant for picture-worthy excursions. All of Off the Grid’s phoneless itineraries sold out and more are being added for 2018. Yoga retreats and hotels are offering device-free options as well, with one hotel offering iPhone cases to anyone who makes it 24 hours with just a “dumb phone” replacement. (NYP)

Kids can’t get enough of Roblox, and the platform just went “cash-flow positive.” ComScore found that children under-13-years-old spend more time on Roblox than on YouTube, Netflix, or any other similar platform. For teens, the game came in second, behind YouTube. The gaming sensation lets kids create and interact in digital worlds, build their online friendships, and make money—if they’re a “top creator.” (TechCrunch)

Unboxing is getting an augmented spin for Nike’s next sneaker drop. The Millennial and Gen Z-favorite brand has created a link that leads to “a virtual box” containing the new shoes. Users can access the box via any platform and then open the box and use their cursor or finger to check out the Deerupt shoes from “all angles.” Nike also recently let sneaker heads virtually run across the world in their Nike React shoes via in-store treadmills. (GlossyMobile Marketer)

YouTube Red is headed to the box office for the first time with their original movie, Vulture Club, starring Susan Sarandon. In the past, they’ve premiered content on their premium service and in limited releases, but rumor has it this will be their first big bet on a full theatrical release. Everyone from Amazon to Hulu is upping their original content to compete in the streaming wars, and though YouTube has all eyes on their free platform—their paid service is lagging behind the competition. (IndieWireThe Verge)

“I’ve been using Apple products for years. Although Samsung technology is probably better, I am so used to Apple that I would probably not switch.”—Female, 18, PA

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