Luxury is thriving more than ever, but what has changed in 2020 is the luxury consumer and the way they think and buy. Especially millennials and Generation Z. For this reason, luxury brands are taking decades-old formulas and putting them to the test with new, disruptive ideas that are sure to take high fashion by storm.
1. Goodbye history, make way for the future
The brand’s legacy used to mean everything to luxury homes, but suddenly, history isn’t so important anymore. While these leading brands remain respectful of their roots, they look more to the future and less to the past. Today, the values are changing and focus on quality, design, craftsmanship and exclusivity. Apparently, people only care about a brand if it has created value in 24 hours. Wild, but we get it.
2. Add a little heart
While product development used to be the holy grail, brands are trying to humanize themselves so that they appear to have soul and not just produce products for the sake of selling. It’s called people innovation and it’s about giving those in charge creatively (i.e. designers and artists) freedom to create without being stifled by a formula. The idea is that this will encourage more innovative thinking.
3. Chatbots and digital consumerism
An in-store janitor and aggressive sales team used to represent the fashion industry. In an age where online luxury trumps department stores, some digital pressure is being applied. This pressure feels less forced and makes the consumer feel like they have a choice from a safe distance: their computer. Instead, sales bots send text messages and communicate with consumers in other ways; As you know, millennials hate in-person interaction and like to solve problems over text.
4. Work more with local influencers than with big stars
Expect to see less Kardashian-Jenner endorsement and more cool underground influencers with a cult following and an edge. Influencers who are closely connected with friends and family have been shown to be more trustworthy and authentic than mega-influencers or celebrities, who simply use their status to promote their influence. Say no to fake influencers and yes to genuine social media fashionistas who value relationships and build trust over sales.
5. Millennial men are a big part of the 2020 consumer market
While older women used to dominate the luxury market, an unexpected new demographic is entering: men ages 23-36! Yes, millennial men are big spenders and are reaching their peak of consumerism. A staggering 62% of millennials are exercising their spending power before settling down, and brands are reaping the benefits.
