What is the difference between the Generation Y and the Generation Z in the Luxury market?
The “Generation Y” (1980-1994), or also called “Generation Why“, loves Luxury and they don’t have any moral judgment to consume Luxury product. Indeed, according to a survey, “83% of the GenY find buying a Luxury product during the crisis is not something shocking.”
Purchase Luxury products is for them a sign of recognition that they want to share it on their social medias (Facebook, Instagram…) and they are able to save for months or even years to buy a Luxury product.
According to GenY, Luxury is a perfect purchase, because it is the result of a long and hard decision. Luxury represents product substainability and timelessness accross generations. They have a huge culture in Luxury brands and codes, for example they know the difference between Chanel bags 2.55 and Timeless, they know the story of Christian Louboutin redsoles etc. This knowledge made them very suspicious about Luxury products and they expect a price justification from Luxury brands.
We think that Luxury brands have to understand the importance of this generation. In fact, their spending power will grow because between 2018 and 2020, their revenus will increase more than Baby-Boomers’s and the Generation X’s ones. The Generation Y is clearly announced as the future Luxury client. According to us to appeal and attract them, Luxury brands have to answer to their needs and to understand their codes. Indeed, Luxury houses have to be attentive, to create a link with this target by putting them to the heart of the brand. We believe that brands have to create Luxury customised products especially dedicated to the GenY. In other words, the GenY has to feel close to the brands.
Now let’s turn to the “Generation Z” (which is according to us the ones born from 1995-2020), or also called “Generation Why Not”. The GenZ is very different from the other generations. Indeed, contrary to the others they want to create their own and new world, to reverse conventions.
They are independants, they are born with social medias and internet and they always do something with passion. The GenZ is always connected to their smartphones.
As the GenY, they love Luxury and according to the GenZ, hold a Luxury product is a statutory symbol. They want to show to the world that they have succeed by their own way. They make impulsive purchases and they want and expect to consume immediatly.
We think that to appeal to the GenZ, Luxury brands have to offer something different. Luxury houses must rethink their strategy planning. First of all, the GenZ need and expect a transparency from the brand (price, products, services etc.), they also expect product innovations such as connected products and to have a unique and an exclusive client relationship. Therefore, according to us brands have to reinvent their point of sale, their services, their e-shop (click&collect, shop&deliever, where to store), their entertainment to create a special link with the GenZ. Furthermore, we believe that Luxury brands have to create their moment of glory with for example their promotion with competitions etc.
Are you ready to meet Luxury future clients?
If you want to learn about the generation Y and the luxury you can read: “La generation Y et le Luxe” by Eric Briones and Grégory Casper (here)