Millennial Luxury Marketing - Understanding a generation of the future
After perfecting your skills with the baby boomers and knowing how to tap the nail on the head when it comes to generation X, you may feel stumped if you are trying to perfect your millennial luxury marketing strategies in a new luxury economy. There have been many headlines screaming controversies such as Real Truth magazine asking ‘If they know so much, how do they understand so little?’, they have been called the selfie generation, the me-spoke seekers, the digital natives, and so much more. Yet the question remains are they really just a misunderstood generation? And if so shouldn’t we be trying to get to know them better because after all, they are the future of luxury.
News Cred recently shone a light on the millennials with their evocative survey marked millennial mind. It’s easy to overlook this generation, to wait for them to join the ranks of their baby boomer peers, and to write off their habits as fads, yet the truth is they are going to be leading our workplace by up to 50% and they are going to be responsible for over $1.4 trillion in spending power in the next five years. Not to mention every month in the US alone, there are 82 million millennials eating content for breakfast. These numbers are pure proof that this is not a generation to be overlooked and those who want to lead the way in terms of millennial luxury marketing success best start unraveling the mystery of these infamous luxury consumers.
know where they are coming from
If you want to understand millennial luxury marketing then the first thing you need to do is take a good hard look and get to grips with how millennials view their social status. In a way, it must be tricky to be raised in a time when your peers are forever telling you ‘you can be anything you want’. In front of your eyes, there are endless roads, paths, and products. You have a million different choices when it comes to careers, sneakers, coffee shops, smartphones, and so much more. Not only do you have all this choice but you have also been born into a time when the recession has slammed the door in your face, you are doomed to have less than your parents, you aren’t interested in frittering away hours on low paid jobs to start a family and have a home. You want to enjoy your time, you want to eat like a king, stomp across the globe, connect with new people, and have the world at your fingertips. And who can blame you; it’s what they promised you after all.
It’s no wonder millennials are misunderstood, so when they see a luxury brand that seems to get their predicament and offers tailored content and solutions that fit them like a glove, perhaps their infinite choices will suddenly have a finite end – and that full stop could be your luxury brand. Perfect your millennial luxury marketing efforts and maybe, just maybe, they will become loyal to your brand.
know the decade that shaped them
The chief content writer of Vice put it right when he declared “In the decade of the 2000s, it was the march of two opposing forces – a crisis of information and the liberation of Information”. For the millennials the world really is at their fingertips, there are no hiding secrets from them. Whilst in one hand they may be taking endless Instagram pictures and tweeting about their lunch, with the other hand they are reading about the conflict in Palestine, debating the upcoming general election, and sharing political opinions with their friends.
Sadly this is also a generation that has lost touch with the idea of trust, now the freedom of information is out there and available, they no longer turn to politicians, TV, mass media and even brands for confirmation of what’s right and wrong. As a luxury brand, you need to earn their trust by carefully selecting which millennial luxury marketing strategies to embark on. You need to also understand that these people are not completely conceited consumers, they care about the world and if they can find a way of blending buying with giving back, they will probably choose that route.
If you are interested in learning more about the values embraced by millennial luxury consumers, consider enroling in our online course "New Luxury & The Value Redefining Luxury".
know their mediums
Remember the good old days of MSN messenger and MySpace? No, odds are millennials won’t either. This is a generation that was born snapping, that updated their Facebook status as soon as they mastered hand-eye coordination, and that knew how to swipe a touch screen before they could say their ABC. If you want to reach out across the chasm to these potential consumers then you need to understand their virtual world. 65% of millennials use Facebook to search for content that amount is breathtaking and if you are not already on social media then you need to hop aboard before the ship sails into the sunset without you.
Knowing how they interact on social media is another educated factor that will give you the edge in terms of your millennial luxury marketing efforts. Millennials like content that is funny, that is informative, that doesn’t patronize, or assume. They also want to put their best foot forward in life and they actively choose to share things that they feel represent their best selves. In the modern world, success is not only measured in dollars, it’s measured in the richness of experience and this is what they will share when it comes to social media.
To learn more about the way millennials interact with luxury brands in a digital era, we suggest you enroll in our "Luxury Touchpoints & The Experience of Luxury" online course.
know not to pull the wool over their eyes
Forbes left one final word of advice when it came to their Sneakernomics article, they said when dealing with millennials to engage, don’t market. This is the bottom line, this a generation that won’t deal well with having the wool pulled over their eyes, they have limitless choices remember, and if they don’t like the cut of your jib then they will simply turn elsewhere with a shrug of the shoulders.
This is also a generation that doesn’t succumb to the slavery of brand loyalty, meaning now more than ever it’s imperative to gain respect. This is not a generation that is going to sit prettily and wait for the world to come to them, they are going to stand up and find what works for them exclusively, regardless of whether it’s considered the right thing to do or not.
To gain respect you need to interact, communicate, offer insight and value, you need to go local, hone down your tone to fit your exact niche, and you need to give them what they want. This is a knowledge-based economy meaning that if a brand is direct, clever, and cares about the world then they are going to win out over a brand that is pretending to be chic and pretending to care. Millennial luxury marketing is all about being your authentic self.
If you want to perfect your luxury offering to make millennials fall in love with your luxury brand, take our "Luxury Branding & The Art of Luxury Storytelling" online course.
Luxury Brand Strategy - Elements to Consider in a New Luxury Economy
Designing an effective luxury brand strategy can be a challenge; the idea of a luxury commodity is a double standard, in short, you are aiming to persuade people to invest in something they don’t really need, and that takes creativity, curation of identity, and apt communication to make it possible. With an effective luxury brand strategy you have the chance of making history, think of those exclusive names that paved the way for the elite market.
Rolex, Hermes, Louis Vuitton, Ferrari – these are a few of the brands that have emerged as leaders in luxury, and it was their luxury brand stories and strategies that helped to make them successful. Familiarizing yourself with the major components of a traditional luxury brand strategy can help you to start weaving your tale, to inspire you to plant your own seeds, and to tend to your garden so that it can flourish and grow.
brand personality
Personality is the hallmark of a strong luxury brand strategy because in the luxury niche you are gifting experiences rather than selling a product. Consumers aren’t inspired by the dull and emotionless exchange of paper for a product, it is tasteless, it is boring, and it is an everyday chore that leaves them listless. They want to be wooed, they want to hear stories, they want myths and magic to come alive, and they want to hold something in their hands that actually means something. You can paint a picture with words, history, art, and imagination, something that lingers like an echo in the mind of the consumer.
Think about La Prairie and you will see hear the whisper of stardust and see the spa nestled beneath the snowcapped Swiss Alps, think about Chanel and you hear the throaty feminine allure, you see the black and white purr of Paris and the flash of pearls against a little black dress. These are the elements of a great luxury brand personality; these are the stories that make you famous.
To learn more about luxury branding or to perfect your own brand personality, consider sign-up for our Luxury Branding & The Art of Luxury Storytelling online course.
influencer & celebrity endorsement
Remember when Nicole Kidman spritzed herself with Chanel Number 5, when Natalie Portman captured the red carpet essence of Dior and when David Beckham sported Armani. We are a culture of celebrity and influencers and for luxury brands to seek recognition and inspire awe sometimes it helps to cast a figure of well-known prestige to help boost your brand. People look up to celebrities and influencers as these can be the physical embodiment of individuals living the good life.
Those who have succeeded in their chosen field inspire others to follow in their footsteps, encourage ambition, and the want for emulation. Having a celebrity or influencer endorse your product can work wonders for brand recognition and bringing a trustworthy glow to your name, something that is indeed worth its weight in gold.
To learn more about the importance of celebrity and influencer endorsement in a luxury brand strategy, sign-up for our Luxury Touchpoints & The Experience of Luxury online course.
public relations
Perfect PR can be as smooth and beautiful as a glassy lake on a summer’s day, a stone can cast a ripple but in moments everything returns to a picture of pure class, tranquility, and seamless beauty. There is no place in the world where PR matters most than in the world of luxury. The whole deciding, purchasing and owning experience should be a ritual and one that makes the consumer feel as though they are the only person in the world.
Successful luxury brands will go beyond that extra mile; they will take their elite loyal customers to the moon and back. From something as simple as offering champagne and petit fours in store to calling your top clients personally to offer them a first look at the seasonal new range before it hits the shelves, these are things to keep consumers feeling drawn into the inner circle, a place that encourages belief and sales.
To learn more about the importance of public relations consider taking our Luxury Touchpoints & The Experience of Luxury online course.
premium pricing
The mantra behind luxury pricing is always a twofold discussion; there is the real price and there is a perceived price. An exceptional luxury brand strategy will be the driving force that glides the real price out of sight and replaces it with something that exudes a higher premium value. After all what is a Rolex other than cogs and springs? What is a Louis Vuitton other than leather and seams? These items are thousands of dollars all because of their name, history, and heritage.
If you want to turn heads when it comes to your luxury brand you need to first lay the foundations, then you build up the hype, then you lay out the price –a price that speaks volumes, that doesn’t bow down to the need to shift a product and make sales, a price that clings to its worth and doesn’t let go.
To learn more about the importance of premium pricing in a luxury brand strategy, take our New Luxury & The Values Redefining Luxury online course.
uniqueness & scarcity
An arctic fox tumbling in the blushing pink snow, a scrap of parchment paper said to be the dead sea scrolls, an antique diadem dull in gold but with rubies that glitter the darkest blood red – these are all things of mystery, things that arouse our curiosity and things of rarity. Premier luxury branding follows in the footsteps of rarity and tiptoes far from the beaten track.
Elite consumers’ desire things that are scarce in this world, things that make them feel unique, things that are one of a kind. If you want your product to be worth its weight in gold then you need to build a mystery around it, cloak it in rarity, and let the whispers build to create a buzz.
To learn more about the importance of uniqueness & scarcity, sign up for our New Luxury & The Values Redefining Luxury online course.
selective distribution
Selective distribution can save a brand, remember when Burberry nearly went down to the pan thanks to fake design items being passed out left, right and center? The brand was in a dire state, stumbling on broken hind legs, but it was the ability to reign back and make the scare and selective again that saved it from titanic disaster. The underscored truth is; that if everyone has your brand, then no one will want it.
In effect luxury branding goes against the grain, usual sales techniques is to make everyone hold your product in their hand; luxury branding is about making everyone want to hold your product in their hand, but only letting an elite few have the pleasure.
To learn more about the importance of selective distribution in a luxury brand strategy, sign up for our New Luxury & The Values Redefining Luxury online course.
pedigree & heritage
The sooner you understand the significance of heritage, the sooner your brand will succeed. Pedigree and heritage are the divine forces that will separate you from thousands of other companies competing on the modern day market. Use legends to inspire myth, fables to fascinate, and storytelling to build a history behind your name takes you out of the plastic consumer world and makes your product something that lives and breathes.
Many elite consumers would rather own a tea chest that traveled on a camel’s back along the silk route, or a broach that once belonged to their great-grandmother than a brand new designer piece without a story attached to its threads. Building brand heritage means tying the story of something with the exclusive appeal. Myths feed a brand, they are the pure spring water to a parched flower, something that will make it bloom in its beauty.
To learn more about the importance of pedigree & heritage, enroll in our New Luxury & The Values Redefining Luxury online course.
performance
The previous factors are all elements of building an innovative and inspiring strategy to help elevate your brand, but that doesn’t mean that performance should be overlooked. From the speed of a Ferrari to the silent gliding hand of a Rolex, the alluring feel of soft leather between your fingers, or the touch of cashmere. It’s not just the myth of these products, but it is the magic too.
If you build something beautiful, create something that shines, and deliver something that stands up true to its name and surpasses expectation, then that is already half the battle won. The rest is using the threads of storytelling, trust, awareness, market understanding, and public relations to weave a tapestry of sheer wonder.
To learn more about the importance of performance in a luxury brand strategy, sign up for our New Luxury & The Values Redefining Luxury online course.
The World’s Most Expensive Superyachts
Superyachts have always been associated with the wild and the wealthy, probably for good reason to.
These floating pleasure lands can be a vision sewn from dreams and the perfect way to help you experience the good life.
From champagne cocktails at breakfast to dropping anchor on some of the most exclusive beaches in the Caribbean, rolling out the red carpet to welcome you to the hottest beach clubs in the Balearics and supping every night on lobster and caviar beneath the stars.
Superyachts are even bedecked with personal onboard spas, saunas, Jacuzzis and more; imagine open air cinemas, a plethora of toys and tenders and a crew waiting to deliver your every dream day after day.
In the spirit of celebrating the finer things in life, take a sneak peek at some of the world’s most expensive superyachts to get you in the mood for summer.
Superyacht: Eclipse
Costing a staggering 1.5 billion and one of the biggest superyachts you can find in the seas, the Eclipse is about as grand as it gets.
Russian billionaire Roman Abramovich is the owner and with its twenty-four guest rooms and crew of sixty it certainly seems he has plenty of friends.
Two swimming pools glitter on deck along with a helipad for those days when a tender to shore simply won’t cut it. For those who adore their water toys, the Eclipse boasts its own unique submarine to dive deeper than anyone has ever gone before.
Those who appreciate a generous dollop of privacy when playing aboard will also adore the fact that this state of the art superyacht boasts an anti-paparazzi laser shield ensuring that not even the sneakiest camera will be able to catch a thing.
Image Source: By Keld Gydum via Wikimedia Commons
Superyacht: Dubai
Just like the famous city, this is a superyacht that is surely in a class of its very own. Dubai is owned by the Prime Minister of the UAE and cost an incredible 350 million.
The second largest private yacht is no stranger to the rich and the famous boasting an interior décor of the finest rich fabrics and incredibly ornate handmade mosaics.
Onboard you will never grow tired with Jacuzzis and swimming pools to keep you cool, a helipad to ensure you can get here, there and everywhere and a sweeping circular staircase with glass steps that change color to suit the mood of the evening.
Over a hundred people can sleep soundly on this luxurious superyacht and you are sure to want for nothing.
Image Source: By Imre Solt via Wikimedia Commons
Superyacht: A
The name may not sound particularly striking but once glance at this gleaming white pearl of the ocean and you are sure to be falling over to get a peek onboard.
Costing a majestic 300 million to make the design is simply out of this world. Bold and eccentric in design in a way that cannot help but make you think of a submarine, inside you will find gorgeous creamy décor laced with glass and minimalist style.
The glass fronted swimming pool is a dream come true and the beautiful tenders inspired and designed by Phillip Starck who created the whole yacht, are as intelligent and perfect as you could ever imagine possible.
Image Source: By Dstnfrey via Wikimedia Commons
Superyacht: Al Said
Said al Said, the Sultan of Oman really pushed the boat out with his 300 million showpiece that is said to have a grand hall so large it can hold a full-size orchestra.
This floating dream can sleep seventy guests in stately comfort and boasts a crew of up to a hundred and fifty. The interior is somewhat of an enigma making sure that this is a superyacht that holds its legends well.
Image Source: By Qatarperegrine via Wikimedia Commons
Superyacht: MY Starfire
Ok, maybe MY Starfire is not one of the most expensive superyachts in the world but it is akin to a boutique hotel when you don’t want to stay on land. Being a sumptuously sweeter size means that you can be sure that you get the special treatment you deserve.
Exceptional suites, plump and cozy designs and a small crew waiting to attend on you and your party alone makes for a welcoming stay with plenty of fun and frolics involved. MY Starfire also boasts a spa, cinema, and, of course, has plenty of wet and wild water toys to keep you fully entertained no matter which destination is calling you home.
The Luxury Fatigue - Everywhere for Everyone
A university student doing a dissertation asked me today a few questions about the luxury market. Before I could answer her, I needed to know what she, herself, defined as a luxury brand.
I have learned over time never to assume that someone else’s definition is the same as yours. And I was right. Like for most people, she referred to the fashion brands.
I think that the fashion conglomerates have done a great job over the last few decades to market themselves as luxury and overshadow the fact that they are no longer true luxury brands.
Let me explain my unconventional opinion on this niche market.
Luxury has always and will always be about experience.
True luxury is about experiencing something that few can.
When Louis Vuitton was alive and overseeing the daily operation of his store, he had, like everyone else, a limited supply of his most precious commodity – his time.
To be allowed the luxury of purchasing one of his creation was indeed the most luxurious gift of all. The experience made you feel privileged. Therefore, the products were a luxury.
Nowadays, the luxury experience put forward by Louis Vuitton and several other high-end fashion brand is slowly eroding. They have forgotten the true meaning of luxury; the executives have instead pursued the promise of a gold rush.
Let’s not fool ourselves, the fashion business is a good business to be in.
Although the quality of the products is still good, the fashion brands have forgotten to control one of the most important aspects of their distribution – the exclusivity.
When you can find a Vuitton bag everywhere as part of the wardrobe of anyone, how can you claim to offer luxurious products?
I travel a lot, more than the average person.
In fact, in the last 18 months, I have driven from Canada to Colombia, with a few European and North American side trips. Random places, where I have seen a Louis Vuitton handbag, cannot be counted.
I have seen hundreds, if not thousands, of the same patterned bags in the hands of tourists.
In fact, I have been to over 65 countries in the last 15 years, and I have never been in a country where I did not see their handbags.
Luxury is not about a price tag; it’s about an exclusive experience.
I have the Louis Vuitton fatigue, and I am convinced I am not the only one.
Luxury should not be for everywhere and for everyone.
Why All Luxury Brands Should Sell Online
Exclusive, elite, rare and sublime, these are just a handful of words that many luxury companies hope will emulate in a consumers mind when they hear a certain brand name. Yet these companies also feel that should they unmask their brand image online that they are at risk of falling from the luxury pedestal. The fear is almost palatable and doesn’t come without deep understanding.
The online world of commerce has long been associated with lower prices, swift availability and an easy shopping system that goes against the luxury grain. Luxury brands work hard to build intricate heritage stories, rich buyer experiences and to soak their status with being selective as opposed to all-encompassing and it seems that translating this to the online marketplace is a tricky feat.
Hermes wants you to feel the slip of their scarves in your fingers, Chanel wants you to sip champagne in their opulent temples like stores and Baccarat wants you to breathe in the fragrance of myrrh in their crystal sculptured bottles before you buy.
Luxury companies are well aware that they are selling more than a product, that they are selling a luxury lifestyle and a visage that taps into our subconscious urge to be special. How can you carry that prestige to the online world where everything is up for grabs and the whole platform reeks of impersonal clinical cut style? This may be the very reason why Chanel, Hermes, and Dior have chosen to keep their wares strictly housed in brick and mortar.
Yet the reality is they could also be falling short when it comes to opening the door of opportunity.
Luxury brands that don’t sell online may be keeping the valuable retail experience alive, they may be placing themselves far from the maddening crowds and they may be retaining their exclusive playing hard to get appeal, but they are also alienating many of their own potential buyers.
The reality is that not everyone with a six-figure income has the time, the patience and the drive to swing by the Champs-Elysees or Rodeo Drive in search of the latest trends. Wealthy people, like everyone else, are busy and also adore shopping from the comfort of their own home. Add into the mix the fact that many highbrow fashion boutiques have a bad rep for scrutinizing customers as soon as they step in the door and you start to see why the trends of luxury online shopping can seem attractive.
There’s little doubt that luxury brands not adapting e-commerce are losing out on sales and kicking their own revenue in the teeth. Of course, increasing sales isn’t always the aim of high-class brands who tout retaining their integrity and protecting their image above all else.
Luxury branding is a creative entity there’s no doubt about it, building a beautiful brand, telling a story that inspires, showcasing the best of your talents and keeping the desire alive in consumers is an art form and why can’t that art form be applied to the online world? Just because a company chooses to sell online doesn’t mean it needs to lose its integrity.
The very essence of an online luxury presence can be a remarkable challenge and can be controlled in the most exclusive fashion. Beautiful online stores can be created much in the same vein as a brick and mortar set up and high spending clients can gain access to otherwise limited wares. In short, there is a way for luxury brands to sell online without compromising their image and lowering the bar.
Building an incredible online presence through social media is also something that luxury brands cannot ignore as this is where you lay the foundations for future clients, interact with customers and deliver innovative selling techniques to drive your revenue and reputation up.
Of course, all the social media interactions will drive traffic to your site and without anything to sell you are leaving the table bare and essentially turning your own customers away.
It’s not even all about money and loss of sales when it comes to the benefits of building an online marketplace, it’s about the future. The internet is here to stay and future generations are being raised to barely need to set foot in an actual store as everything is so readily available online.
Luxury brands who continue to tread water rather than rising above the tides are sure to get left behind by not embracing the technological change.
If you want to know more about how to perfect your digital luxury experience, consider taking our "Luxury Touchpoints & the Experience of Luxury" online course.
Great Luxury Marketing Resources for Brands
The Luxury market, like any market, is constantly trending, changing and fluctuating with the economy and for those with a vested interest, it helps to stay abreast of these patterns.
With the number of luxury consumers tripling over the past twenty years it seems that every day you can catch glimpse of headlines boasting luxury consumers new style, the changing habits of affluent shoppers and the rise of online marketing for luxury brands.
Of course, many big-name luxury companies choose to stick solidly to their roots and ideals, believing in the richness of their heritage as opposed to cresting and falling on the wave of the times.
Yet all luxury businesses both big and small should be well aware of how the landscape around them is changing, who is emerging and who is lagging so that they are able to place themselves seamlessly in a way that effectively works for their business.
The luxury niche no longer comes with a stiff upper lip and limited choice; it is savvy, sharp, wild and fiercely competitive, melding many styles and contradictions together.
These luxury marketing resources for brands can be the perfect place to start in getting to grips with the world of luxury.
luxury daily
Leading the news in the world of luxury marketing, luxury daily is a divine place to peruse what’s hot, what’s not and what new launches and trends are currently making headlines.
This is without a doubt one of the most comprehensive places to swing by with champagne in hand and find out who Sotheby’s have just signed a deal with, when you can expect Chanel’s new fragrance to hit the shelves and what pocket of the world the Ritz is planning on dazzling next.
luxury society
The luxury society is the place to be and be seen, even if it does exist in the sassy world of cyberspace.
This virtual socialite party is a networking haven, throw on your pearls, grab your little black book and hurl yourself into an online world where you can have hearty debates, hash out new concepts, call on the expertise of other members and even strike up new business opportunities with other keen and able entrepreneurs.
Along with meeting and greeting there is news to devour, headlines to hum over and close to the bone topics to explore.
luxury institute
Get a closer look into the world of luxury with the luxury institute.
The blog is stuffed full of the latest luxury news whether it is letting you know that Kate Spade is closing stores or giving you a glimpse into the most recent celebrity endorsements. Along with the latest headline grabbers, there are many great articles pertaining to studies on luxury marketing and great advice from top affluent leaders on how to adapt your brand to boost your name and reputation.
luxgGuru
Lorre White AKA the luxury guru is no stranger to the world of the wealthy and with numerous press appearances under her belt, she is the go-to for all things fabulous.
Lorre has firm connections in the power industry and her blog is filled to the brim with interesting articles, insights, product launches and so much more.
For those who want to keep ahead of the current trends and who want to dabble in the world of inspiration and classy living, then the luxury guru can certainly point you in the right direction.
brand uniq
The power of marketing is arguably even more important when dealing with Veblen goods and this blog will give you plenty of pointers on how to place your brand in the limelight with strategic marketing skills.
Simple, straightforward and free of fuss this blog is crammed with high caliber articles that will help you to place and position your brand, find the optimal pricing strategy, move your luxury presence into the online world and more.
bain company
Bain & Company have built their reputation on being the golden choice when it comes to consulting in the luxury niche and their articles have been published across the globe.
From features in Forbes to the business standard they are certainly up there in the world of knowledge and know how.
Covering a range of industries with far-flung expertise it’s always good to swing by and check out their publications section to see expanding brands in the market, check equity reports and browse their archives.
mckinsey
Take a sneak peek behind the curtain with Mckinsey and find out the latest insights into luxury and consumerism.
Those who want to know which markets are emerging, which digital consumer trends are growing and what’s happening differently in China than in Europe will adore the wealth of unbridled information available.
Not only can you top up your know-how on consumer trends but you can also get a ton of marketing strategy advice and tips on how to better engage your customers for growth.
wealth x
Those immersed in the billionaire boom will find the news at Wealth X interesting to say the least.
This financially indulgent blog not only shows you the money but also shows you where the money is changing hands, being kept, growing and falling.
Not only can you find out about China’s newest investment laws but you can also get inside the heads of luxury entrepreneurs, see what designer bag maker Moynat has up his sleeve and see what challenges could be hitting the luxury market for the coming year.
To growth your knowledge in luxury brand management, consider enrolling in one of our online courses.
Luxury Marketing – Focus Must be on Cities
Where would the luxury world be without the glittering glass-fronted stores on Paris’s Champs Elysees, the gold signs over New York’s prestigious Fifth Avenue and the Rolex and Christian Louboutin boutiques on Milan’s Via Monte Napoleone?
There seems to be no doubt that when it comes to making the luxury world work for your product the focus has to start in the cities.
The fast facts and figures are already scrawled across the internet telling us that no less than a staggering 85% of the luxury market growth will come from the world’s top 600 cities.
We all know the sprawling luxury metropolis names of London, New York, Paris, and Milan but some other major players will be emerging from the shadows and accounting for much of the growth before the calendar ticks over to 2025.
Unsurprisingly many of these cities can be found on the far eastern shores of China with Beijing, Hong Kong, Guangzhou, and Shenzhen leading the parade.
China is growing to become one of the leading consumers of luxury with a penchant for authentic brands and designer goods. According to Bain & Company, Chinese consumers spend over three times the amount abroad then they would spend at home.
China is set to drive half the growth in the luxury industry which is why it’s essential for brands to turn their eyes to the east.
The affluent Chinese market doesn’t only hold power over retail, sure elite Chinese travelers will love to swipe their platinum cards in the stores of Prada and Chanel but tastes are changing and they will want exclusive experiences outside of the shopping environment.
Wealthy Chinese households aren’t succumbing to our idea of a recession, in fact, they are only getting wealthier and the more they accumulate, the more they are looking to travel and the more they are looking to spend.
Yet even closer to western shores the dizzying height of spending seems to be led by countries like the USA, Italy, and France with tourist luxury spending adding its weight to the bulk of the figures.
One quick glimpse at the leading locations where tourists like to splurge takes us back to the cities.
From chic weekend shopping trips in New York to European jaunts to Paris, Milan, and London there’s no doubt that affluent visitors love to splash the cash in the major city hubs.
It’s also essential to note that many of the world’s billionaires are also entrepreneurs who globetrot for business.
The major financial haunts are often to be found in bustling cities and when these affluent city slickers step off their private jet they will be seeking high-end retail for spending within the city limits.
Different cities have different draws and this will impact a luxury brands choice when it comes to which city is the best to focus on.
The fashion capitals of New York, Paris and Milan clearly put their best foot forward when it comes to apparel yet skincare hits the top of the charts when it comes to Asia.
Investors should note that the mature cities of our present luxury scope aren’t slowing down, only there seem to be more emerging cities joining the trend.
Forbes has noted that there seems to be a stronger affiliation to keep strength and investment in more western cities from many luxury brands, yet the resources need to follow the growth.
Companies must be willing and ready to send the best of their best to the places where the growth patterns are emerging.
It also helps to have a firm footing with a good local partner or affiliate in the far-flung cities so that you don’t go charging in without understanding the hurdles of how to conduct business on foreign shores.
Megacities are the future of luxury and no longer is this limited to old-world Europe and the billion dollar mansions of the United States. China, the Middle East, Brazil, India all these places are on the rise and if luxury brands are successfully able to sweep their marketing towards these shores then we can all ride on the crest of this new world wave.
If you are interested in more details, download the McKinsey & Company report at http://mckinseyonmarketingandsales.com/sites/default/files/pdf/LuxuryScope.pdf
Blogger Spotlight: Angie Silver of SilverSpoon London
Behind every great luxury blog, you will find a great story. Luxury bloggers are real people, not machines, and to successfully work with them, we recommend you get to know them a little better. Through our years at LuxeInACity, we have talked, collaborated and exchanged ideas with dozens of great bloggers from around the world.
Since bloggers rarely talk about themselves – they tend to talk about everyone else instead – we hope to showcase their skills, expertise and opinions in this blog series. Get to know them, learn from them and hopefully you will find an innovative way to collaborate with them.
Today’s blogger is Angie Silver, the founder and writer of SilverSpoon London. Her blog reflects her two passions: London lifestyle, especially the restaurant scene, and luxury travel. Angie’s uses her personal experience and recommendations to ensure her readers will be informed about the very best a destination has to offer.
Every blogger has a different story on how they got started blogging. What is yours?
I was working on another business venture and I started to develop the blog as part of that. I found that I enjoyed the blog even more than the other business and I decided redirect my focus. When I came to the decision that it was what I wanted to concentrate on, I renamed and rebranded to reflect my chosen style. I’ve always been passionate about food and luxury travel and my friends had constantly asked me for my advice on where to go and where to stay, the blog was the opportunity to collate this information all in one place and to write a personal diary that I can always long back on.
Like most successful bloggers, you probably received hundreds of emails per month from luxury brands who want you to share their story. What makes you decide to work with a brand over the other?
I prefer to mostly work with brands I know of and I will certainly only work with companies that share my values and are of interest to my readers.
What is your take on press releases? Do you like receiving them or do you simply discard them?
I always keep abreast of luxury travel news and trends through websites, news and other bloggers. However, it’s very useful to receive a press release straight from the source. It’s inevitable that I’m going to get some irrelevant ones but these can be filtered out and discarded very easily. I don’t run stories on my blog purely based on the press release, as my blog is all about my personal experience. However, if the news was of interest to my readers, I would certainly share it on my social media.
What would make you choose to work with a brand on a giveaway campaign on your site?
I prefer to work with brands that I’ve heard of and already have some sort personal connection with. However, if the brand espouses the same values as me I am certainly open to working with them. I’m always careful when I choose what prizes that I give away as I want to make sure it’s they are right for my blog and my audience.
If a brand wants to reach you, what channel should they use? Do you prefer email, social media or another means of communication?
I prefer to be contacted via email so I have all my communications in one place. I also think it’s safer, some brands want to send me samples of products and I prefer not to give out my address over Twitter.
What is the coolest gift you have received from a luxury brand in a blogger outreach program?
I’ve been fortunate enough to stay in some beautiful hotels and dine in amazing restaurants. I’m very grateful for the opportunities that my blog has given me.
Of all the social media channels you engage on, which one do you prefer and why?
I really like the interaction that you get over twitter. I’m able to network with brands I’m interested and have a personal connection with my readers.
Which social media channels does your audience interact with the most?
Mostly Twitter, but I think Instagram is also huge for the luxury travel market. The visuals of beautiful places, hotels and scenery just can’t be fully appreciated in words.
In your opinion, what does it take to become successful on social media?
Dedication. A continuous and consistent social media presence in vital, as is networking and interaction with the right people. Good content is also important as well as eye-catching visuals.
What is the main reason you blog on a daily basis? Is it for pleasure, for business or for both?
Both! Blogging is my business but I’m absolutely passionate about it so much so that you can rarely pull me away from my computer or phone!
Apart from blogging, do you offer additional services to luxury brands who choose to work with you?
I have a strong background in events planning and I’m happy to help with organizing group blogger events.
If you had to mentor a new blogger, what is your go-to advice to become successful?
Definitely focus on what you love to write about and with so many bloggers out there, make sure that you have a niche. You won’t become an overnight success, building a blog takes time and dedication. One of key ways I’ve found of growing my blog is networking both online and offline. I have a strong relationship with other bloggers and my readers on social media, but I also meet them face-to-face at events and meet ups.
Reach out to Angie on Facebook, Twitter, Instagram or Pinterest. You can also email her directly. Or, connect with us for an introduction.
Future of Luxury - Trends to Follows
Recently, I was approached by Brady Dale, contributor at Fortune Magazine, for my opinion on the future of luxury. Although Dale presented my opinion in a very smart way (thank you Dale!), I wanted to take a little more time to put together additional thoughts on the future of luxury in 2015 to share with those who might need a few extra tips. So here you go, a few tips from someone who has held many luxury hats. Here are a few trends to follow if you want to keep up with the future of luxury.
The Shift From “Me” to “We”
In this new digital era, it’s no secret that luxury brands must embrace their community if they want to stand a chance against the test of time. New luxury consumers, especially Millenniums, need a little more interaction than a great advertising campaign plastered in print magazines and on TV. They want luxury brands to engage them through social media on a regular basis, not just by pushing products and branded facts, but by being real. To achieve this, brands must educate and entertain with interesting content and offer customer service through social media instead of setting up an offshore call center with no real value.
I recently spent a week analyzing the social media channels of dozens of luxury brands as part of a study for a patron and noticed that most are still stuck in the “Me” era. Most talk about them, themselves and … once again themselves. They rarely acknowledge the fans they are speaking to, and they barely interact with influencers or other industry leaders unless it is for self-promotion. Although some luxury brand managers might think they have embraced the community, I suggest they take time to educate themselves on what it means to have a community mindset in 2015.
These “stuck-in-another-era” luxury brands will need to adapt quickly to the new realities of the “we” environment if they want to stay in the game. Select luxury brands are already paving the way and establishing a new luxury brand/fan relationship standard. A brand can still be exclusive and luxurious while being a member of the community; they simply need to be real.
The Rise of the Luxury Curator
We all know “Time is of the essence” but when it comes to the affluent audience, “Time is the ultimate luxury”. When I worked as a personal assistant for a High Net Worth Individual, roaming the world, planning luxury experiences or buying luxury goods, I was told “unless the cost is more than $10,000, please don’t come to me for an opinion. Just make the purchase yourself according to my taste and needs.” Obviously, when you start out as a personal assistant, that statement is a little scary, but with time, you realize that for HNWI, their time is more precious than their money. They have plenty of money, but little time to enjoy it. Once I gained the full trust of my employer, that $10,000 price point was gradually raised to $50,000.
Therefore, expert curators are luxury influencers, whether they are luxury bloggers, personal assistant, personal shoppers, art curators, and luxury travel agents. They will become even more precious to those who hold the real cash in upcoming years.
For luxury brands, this means that they will need to cater to these influencers and treat them with the same respect as HNWI since they often hold keys to the wallet. I will always remember the day when I entered a car dealership in Montreal and bought two new SUVS in 30 minutes. I didn’t want to drive them; I just needed a charcoal and black one that would be comfortable enough for a Golden Retriever. Now that is purchasing power in the luxury industry.
Luxury Experience Trumps Luxury Good
All good luxury marketing expert understands that in this highly competitive industry, it’s rarely about selling the characteristics of the product, but about promoting the brand experience surrounding the goods. This is why luxury brands spend large sums of money to bring forth their brand story through all available marketing channels.
Once again, it’s no longer enough to tell the story; luxury brands must allow their patrons to “live” this story through exclusive events, private shopping experiences, one-on-one interactions and more. For example, Shawn Boyer, head designer and co-founder of Anatomie, a luxury travel fashion brand, will often fly out to meet his patrons in their private homes to crank up their personal style. He will obviously coordinate Anatomie outfits, but also assist these influential women with heaps of fashion advice. His patrons have become his friends, and you can be sure that these ladies give him a lot back in return for his time and generosity. Shawn makes luxury human once more. He reminds me of Coco Chanel and other great luxury designers when they all started their career. You have to admit that it is a shame that you no longer get the same level of service with luxury brands such as Louis Vuitton and Yves Saint-Laurent.
Although, we have seen many trends in the last year to convince us that the future of luxury is changing, I feel that these are the most important and often the most disregarded by luxury brands. What do you think? Find me on social media, and share your opinion.
Luxury Lifestyle Awards Middle East: Honoring the Best
The most anticipated event in the world of luxury – the Gala Ceremony of the Luxury Lifestyle Awards 2015 Middle East – took place on the 21st of May at the fabulous Ritz-Carlton Hotel, Dubai. More than 250 guests, anxious to be the first to find out the names of the Winners, gathered for the Gala Dinner.
After months of excitement and anticipation, the names of the Winners were finally revealed. Please welcome the Winners of the following categories:
Luxury Hotels: Waldorf Astoria Ras Al Khaimah (United Arab Emirates), Waldorf Astoria Jeddah – Qasr Al Sharq (Saudi Arabia), Rixos Sharm El Sheikh (Egypt), Palmalife Marina Hotel (Turkey)
Luxury Spa and Wellness Center: Dalouk Wellness Spa (United Arab Emirates), Al Faisaliah Spa by ESPA (Saudi Arabia), Celebrity Spa (Kazakhstan)
Luxury Restaurant: Zuma Abu Dhabi (United Arab Emirates), Nozomi (Saudi Arabia), EAST restaurant a part of Parmigiano Group (Kazakhstan), Mangal Steak House (Azerbaijan)
Luxury Residential Real Estate: Alfardan Properties (Qatar), Tatweer Housing Company (Saudi Arabia)
Luxury Jewelry Brand: Toujous Jewellery (United Arab Emirates), L'azurde Jewelry (Saudi Arabia)
Luxury Beauty Salon: Rimax Beauty Center (Kazakhstan)
Luxury Interior Design Company: 4 SPACE interior design (United Arab Emirates), CHELEBI Furniture and Décor (Azerbaijan), Batyr Ospanov Designs (Kazakhstan)
National Brand: SYLKA™ Carpets (United Arab Emirates), Sia & Moore Architecture Interior Design (Turkey), Sara Hegazy (Egypt), Pasha Life Insurance (Azerbaijan), Fanilla Couture (Qatar)
National Fashion Designer: Zeina Slaiby (Lebanon), Mamzi by Mariam Abdelghany (Egypt)
Luxury Lifestyle Awards 2015 Middle East was attended and evaluated by the honorary guests and juries including the members of Royal Families of Abu Dhabi, Dubai and Qatar, representatives of world-renowned luxury companies such as Bvlgari and LVMH, Xerjoff International, RFMAS Group, EMEA Trump Hotel Collection, The Kanoo Group, ESCADA, Vertu, L’oreal Luxe and others.
All the Winners have been rewarded with the Golden Crowns by the Italian jewelry brand Faraone Mennella, as well as with the custom-made certificates in support of their undeniable excellence.
Luxury Lifestyle Awards expresses its deepest gratitude to its Title Partner Audi Corporate for its contribution to the event and providing the guests with an opportunity to appreciate the perfection and magnificence of Audi RS7 and A8 models.
The time flew by with Talos Diamond Watches Partner that dazzled the guests with its high-end timepiece craftsmanship and exclusive diamond encrusted pieces. The Artisanal Partner Le Vault displayed the extraordinary handcrafted pieces and presented the custom-made gifts to the Luxury Interior Design Studio Winners while Atelier Habib, Interior Design Partner, displayed the artwork by Helmut Zwerger.
BLK, an Official Water Partner of the Luxury Lifestyle Awards granted the guests with the refreshing experience of tasting the first fulvic-enhanced mineral water. Crochet Flowers, Official Flower Partner, provided the beautiful flower arrangements and stunning winners’ bouquets for the Gala Ceremony.
Luxury Lifestyle Awards also expresses its gratitude to the Falcon Aviation Services – Jet Partner, Pasha Life Insurance – Insurance Partner, and Luxury World Key – Concierge Partner for their supporting the Middle East Gala Ceremony.
An unforgettable evening in Casino Royal style would have been impossible without the help and support of the event agency Plan A Events, creating the real “Bond” atmosphere.
Luxury Lifestyle Awards wishes all the participants to maintain their high-level status and to delight clients by excellent quality and would be pleased to see them among the guests of the Luxury Lifestyle Awards 2015 Singapore.