Highsnobiety x BCG recently released a white paper on the future of luxury goods - here’s a quick recap of the 25pg paper.
By 2026 Millennials and Gen Zers will make up over 60% of the luxury consumer good market. But these generations are not like their predecessors. Millennials and Zers value culture over all. They see through the bullshit of influencers and are looking for inspiration from people and brands that ooze authenticity, powerful narratives, proactive community involvement, and transparency. Dead are the days of going to Lord & Taylor and browsing the racks for the latest trend and product. We (Millennial here!) want to hunt the dark depths of the web, resale included, to find the perfect item or brand to add to our collection. Don’t buy it? Look to Supreme as the prime example of how a small brand used NYC skate ideology to win over an entire generation. Brands that emphasize a culture are seeing 2-3x the revenue growth of other luxury brands.
Do social media influencers still make sense? Well, it depends. We’re scouring the internet to find the perfect piece, and yes we’re going to come across influencers on this inspiration journey, but we can tell when an influencer has been paid to promote something. BUT this doesn’t really bother us as long as the partnership makes sense and both the brand and influencer share the same cultural ideologies and an authentic connection.
What this study means to me as a brand manager: Brands can and should gradually stop spending big bucks advertising in high fashion outlets like Vogue (sorry Vogue, I still love you), and should start using their voice to share their brand story and what they stand for/by through social media, blog posts, and community action. This is an exciting time - a time for young luxury brands to break into a club that previously had few members. You no longer need big advertising dollars to get to the top, you just need a purpose; an authentic message or powerful idea that proactively supports a culture or community. We’ll find you and do the rest.