Gen Z is buying #luxury, and there’s a distinct generational divide when it comes to brand preference, potentially upending the future of the entire category. Jason Goldberg, Chief Commerce Strategy Officer at Publicis Groupe helps The Outcome interpret what this could mean.
Attain’s Post
More Relevant Posts
-
Our 2024 Luxury Retail Digital IQ is LIVE! Annually, we rank top luxury retail brands based on their digital aptitude relative to their peers. What we learned: 🛍 Only 14% of U.S. luxury shoppers report a decrease in discretionary spending. Luxury shoppers are maintaining their spend and are willing to shop luxury brands with some frequency. 📈 The future of paid search is unpredictable. The average CPC of nonbranded luxury keywords rose 51% between March 2021 and February 2024. 🤳 43% of luxury shoppers said they have been influenced by social media posts or ads from a brand when making a purchase. Yet, 54% of Gen Z and millennials report pulling back on their social media usage in the last year. This year's reports include examples from Cartier, Coach, Christian Dior Couture, Gucci, HUGO BOSS, Kering, Louis Vuitton, Ralph Lauren, Tiffany & Co., and Versace. If you want to learn more about how to adapt to digital disruption or what makes a luxury brand genius, see the link in comments for the full report 👇🏽 Shoutout to my co-authors Matt & Shweta for their tremendous collaboration, and the many others who helped us analyze, research, QA, edit & publish. #retail #marketing #digitalamarketing #luxuryretail #consumerinsights
To view or add a comment, sign in
-
The COMPASS Index for Q1 2024 is less than a week away and based on some initial analysis with a few days left in the quarter its already lining up to be an interesting one. 🎆 One surprising brand broke into the top 10, and another into the top 20 – Any guesses? 🌞 Many of the risers from the early analysis show that brands positioned in the more premium price segment have been bolstering their efforts to talk to the Chinese consumer through social activations – the market has responded. Smaller brands have had a much larger impact this quarter as global strategies look towards China for growth and revenue sustenance. 📈 On the whole engagement was up YoY compared to Q1 2023, with strong growth for both user generated content and the engagement on brand generated content. This is an interesting contrast to much of the early quarter talk of revenue generation fears in the market – coupled with a claimed increase in international spending, this could be the result of the Chinese consumer engaging with luxury on a more global level, while still talking about it within their domestic infosphere. 📉 Many of the bigger, top luxury players, have had a relative downturn in both user and brand generated activity – the likes of Chanel, Gucci, and Louis Vuitton had a relatively quieter quarter compared to both Q1 2023 and Q4 2023. ❓Hypothesis here – top luxury is consolidating the new user acquisition of the past years and are focusing more on generating VIC communication. This means a move away from social and more toward private domain. The nature of the COMPASS index does not give insight into this area, but given the market context, this may make the most sense for those positioned at the higher end of the price scale. 🔜 The COMPASS Index will be released in its entirety on Tuesday 9th of April and this quarter we have a complete deck to go alongside our top 50 brands (and top 10 in Watch and Jewelry). Watch this space. #China #Luxury #Retail #Marketing
To view or add a comment, sign in
-
U.S. retailer Saks reveals that American consumers’ positive sentiments are continuing their upward trajectory. The company’s newly released Luxury Pulse survey states that 70 percent of customers feel optimistic and calm about their finances. Of all generations, millennial respondents plan on spending the most on prestige items this quarter, making the group a critical segment toward which brands should gear their respective marketing efforts. “Based on the latest Saks Luxury Pulse, it’s important to keep in mind that luxury consumers are particularly interested in shopping experiences that are personalized to them,” said Emily Essner, chief marketing officer at Saks, New York. Read the full article: https://bit.ly/3T0IIn6 #LuxuryDaily #LuxuryNews #Saks #LuxuryPulse #SaksFifthAvenue #LuxuryRetail #RetailNews #LuxuryConsumers #MarketTrends #MillennialMarketing #MarketingNews #AmericanConsumers
Optimism building among luxury consumers despite slowdown: Saks
https://www.luxurydaily.com
To view or add a comment, sign in
-
This retail company can be a better investment than the "Magnificent 7". The retail industry is less trendy than others: Artificial Intelligence or IT. It's fiercely competitive and can be highly cyclical. Industry's key metrics are specific (SSS, L4L). It's rather boring compared to other options. However, there's one niche of retail I love – not as a consumer - but as an investor: 𝙏𝙝𝙚 𝙇𝙪𝙭𝙪𝙧𝙮 𝙍𝙚𝙩𝙖𝙞𝙡 𝙎𝙚𝙜𝙢𝙚𝙣𝙩. -- And among all the incredible companies in the industry, there's one that stands out by far: Louis Vuitton (LVMH) Why is this company/conglomerate so freaking good? 1) They've built an incredibly strong MOAT around the business. 2) The Management Board is world-class: Bernard Arnault's family. 3) They manage product supply like few can – only Hermès can compete. 4) Their sub-brands have the freedom to develop their own products and concepts. Uncommon but incredibly successful. Some of the companies that LVMH control: Christian Dior Couture Tiffanys TAG Heuer GIVENCHY SEPHORA Guerlain The Donna Karan Company, LLC. ... and many others (check the graph for more info) This niche is great because: 1) Luxury brands can control supply, thereby controlling sales. 2) Its clients are more resilient to economic crises. 3) Its clients are loyal to certain brands for life. -- The risks? I see two major risks: 1) Geographic concentration: much of the incredible growth of luxury brands has come from Chinese consumers. 2) Discretionary spending: although most clients of these brands are wealthy, there are many middle-class consumers who stretch their finances to buy luxury goods, and these individuals are not as financially resilient as the wealthier ones. -- Right now, and because Chinese and middle-class customers are not having the same economic stability than pre-pandemic, there's a slowdown in luxury consumption, and some companies that were once too expensive are now discounted, giving us the chance to analyze a potential entry. These include: LVMH - the inspiration for today's post. Moncler - a growing Italian brand getting traction in the industry. -- Is this a sector you're interested in investing in? In the graph, the brands that were acquired by LVMH in the last 30 years - mind blowing. Graph by: Quartr #investing #valueinvesting #luxurybrand
To view or add a comment, sign in
-
We are thrilled to see the recent shifts in the luxury retail landscape aligning with our insights at LuxD! For the past two years, we've been championing the idea that the digital realm demands a new playbook for luxury brands. The recent move by labels like Louis Vuitton to elevate their digital presence and tighten control over online sales resonates deeply with our stance. "I told you so" moments don't come around often, but when they do, they're sweet! At Luxd, we've consistently advocated for brands to rethink their online strategy, emphasizing the need for control over inventory and pricing. The growing preference for the concession model validates our belief that maintaining a stronghold on these crucial aspects is key to navigating the digital marketplace. The luxury retail industry is undergoing a paradigm shift, and we're here for it! Exciting times lie ahead, and Luxd is poised to lead the charge in shaping the future of luxury e-commerce. Let's continue pushing boundaries and redefining the rules of the game! #luxurybrands #luxuryfashion #luxuryindustry #luxd LVMH Richemont Kering PVH Corp. Prada Group OTB Tapestry Aeffe S.p.A. Wanna talk?
Shopping for Luxury Online Has Fallen Out of Fashion
wsj.com
To view or add a comment, sign in
-
In an era where online shopping is just a click away, why do esteemed brands like Gucci, LV, and Hermes still prioritize the in-store experience? The answer lies deeper than just tradition. Recent insights from "The Luxury Strategy" shed light on a deliberate choice by luxury brands to maintain an air of exclusivity and personal touch that online platforms struggle to replicate. These brands aren't just selling products; they're offering an entry into an exclusive world, where every purchase is a personal interaction and a story in itself. But what does this mean for the future of luxury retail, and how does it affect consumer expectations and brand strategies? ➡️ Here are a few key takeaways: Exclusivity and Accessibility: How maintaining a sense of rarity and selectiveness enhances brand value. The Personal Touch: Understanding the unparalleled customer service and bespoke experience offered in-store. Adapting to New Norms: How luxury brands balance tradition with innovative strategies to stay relevant in the digital age. As professionals in the marketing, branding, and retail sectors, how do you perceive this approach, and what implications does it hold for the future of luxury retailing? Share your thoughts and experiences in the comments below. Let’s discuss the evolving landscape of luxury brand strategies and consumer expectations. #LuxuryBranding #RetailInnovation #CustomerExperience #MarketingStrategy #InStoreExcellence
To view or add a comment, sign in
-
How do luxury and premium brands fit into this new era of authenticity? In this exclusive Goat Report, learn how 15 luxury and premium brands are rewriting the TikTok rulebook to create brand personality, build cultural relevance, and master "The Prestige Factor" on TikTok. We explore: 💎 The challenges facing luxury and premium brands on social 💎 Analysis of 15 luxury and premium brands including The Estée Lauder Companies Inc., Cartier, Hilton and Louis Vuitton on TikTok 💎 What is "The Prestige Factor" and how can brands achieve it (through TikTok)? 💎 Learnings to apply to your own TikTok strategy Download the full report "The Prestige Factor: How 15 Luxury And Premium Brands Are Taking On TikTok": https://lnkd.in/esgZV8gx Enjoy a preview of what you'll find here 👇 #luxurybrands #premiumbrands #tiktok #tiktokmarketing #socialmediamarketing #influencermarketing #influencermarketingagency #louisvuitton #gucci #versace #burberry #tiffanyandco #cartier #pandora #AugustinusBader #EstéeLauder #REFY #Hilton #Porsche #Nespresso #Selfridges #LELO
To view or add a comment, sign in
-
Luxury Industry Digital Shift: Insights into 2024 🌐 Luxury retail is undergoing a digital transformation, and it's projected that by 2025, 20% of luxury goods may be sold online. How are brands like Louis Vuitton, Gucci, and Chanel navigating this shift? From personalized in-store experiences to direct customer engagement via social channels, luxury brands are embracing innovative initiatives to stay ahead. Louis Vuitton's AI-driven chatbot and Gucci's online sales advisors are just a few examples. Which brands, in your view, are leading this transformative charge? #LuxuryRetail #DigitalTransformation #FutureOfLuxury #TechInnovation
To view or add a comment, sign in
-
There's an old adage that suggests people who buy expensive, usually well-made products have a "6th Sense" about these products. "If you know. You know." Big news in the "luxury brands" world this morning. Forbes is reporting, "The owners of Coach and Michael Kors will merge in a $8.5-billion deal to create a new luxury fashion empire in the vein of LVMH, even as U.S. luxury spending slows. Tapestry, Inc., the holding company created after Coach bought Stuart Weitzman and Kate Spade New York in 2015 and 2017, respectively, will buy Capri—owner of Versace, Jimmy Choo, and Michael Kors—to create a single conglomerate that combined generates $12 billion in annual sales." Marketing luxury brands requires a highly honed sense of discretion, in both messaging and images. Why? Because customers of these products are "stealthy" in flaunting their financial clout. There's even a term for the - "Stealth Wealth." F. Scott Fitzgerald, author of “The Great Gatsby” famously wrote: “Let me tell you about the very rich. They are different from you and me.” Recently, we took a deeper dive into this subject and what resulted was this article for our online publication The Magnet. Tell us what your think. Click here for the scoop: https://lnkd.in/gEVRtETE #stealthwealth #luxurymarketing #advertising #creative
To view or add a comment, sign in
5,773 followers