Uptown top ranking

By 2025 millennials are projected to account for 50% of the luxury market. 

Luxury brands have to re-consider their positioning and make themselves relevant to gain this segment's significant spending power.

Relevance for younger consumers comes from community, relatability, and authentic messaging, and in this article we look at these three definers of success.

Community partnerships 
Consumers seek approval from communities that they trust and identify with which share similar interests and lifestyle. They seek guidance to help curate their wardrobe, and gain confidence with recommendations to have the latest product or unique, niche brand. It is important for luxury brands to align values and build relationships with groups that have a large following, like Dover Street Market or Highsnobiety and ease comfort levels in purchasing. Dover Street Market, a multi-brand retailer with outlets in the heart of major international cities, hosts a highly curated selection of contemporary fashion. The in-store experiences mix clothing and accessories with culture and artwork, and brands which are part of this collective are regarded as being at the forefront.

Highsnobiety, an online magazine and social platform for luxury streetwear and lifestyle advice, identifies trends and collaborations, in turn shaping shopper sentiment towards brands. Selfridges has recognised this powerful partnership, and developed The Co.Lab with Highsnobiety, to attract visitors into the department store for an in-store experience touchpoint with the online curator.

Defining persona
Personification through a relatable ambassador or character allows Millennial and Gen Z consumers to connect with brands that are trying to shift away from their conventional values.

Gucci's collaboration with Dapper Dan (seen above) has enhanced its streetwear credibility, while holding the brand accountable for previous diversity scandals and elevating the perceived level of trust and transparency. Tag Heuer using model Cara Delevingne brings a youthful, fresh, quirky appearance to the traditional watchmaker.  A Bathing Ape has also collaborated with the Peanuts cartoons, evoking playful nostalgia from childhood that is embraced by the brand.

Authentic messaging 
During times of unexpected crisis, luxury brands need to be proactive, communicating to customers that they are at the core of the business through an authentic stance. In China, the luxury giants are keeping in-tune with shoppers, ensuring a high level of communication throughout the COVID-19 outbreak.

Prada has developed a reservation list to allow shoppers to book appoints to avoid waiting in-store, and Dior has a dedicated section on its website to clearly inform shoppers of changes to operational hours and customer service, while Louis Vuitton has issued a positive, empathetic message on WeChat to raise spirits.

For luxury to stay relevant in 2020 and beyond, communication is key, with multiple channels bombarding consumers with content, getting in front of shoppers with the right experience and message is critical.

Elisabeth Okrainec