The Future of Luxury

[FOR MILLENNIALS}}]

HYPOTHESIS
Past meanings of luxury have become exitnct.

The Perception of luxury has changed for millenials. Millennials are redefining what makes products and services luxurious.

The perception of luxury for previous generations played on codes such as expensiveness, excess, priveledge, and status.

forces at work

economic changes

technology

media dilution

Students protesting at Occupy Wall St.

11% of Millennials have boomeranged back to their parents house after graduating from college because of the recession (Pew Study 2010)

Millennials are suffering the most from economic changes

10 median number of brands that Facebook users ages 18-34 have ‘Liked’ (eMarketer via Wedbush Securities study 2010)

41% of Millennials have made a purchase using their smartphone

24% of Millennials say that ‘Technology use’ is what most makes their generation unique, the #1 answer (Pew Research 2010)

Increase in technology has created an expectation economy

32% of Millennials say they don’t like advertising in general, compared to 37% of the general population (Experian Simmons Study)

Increased access to mass media has lead to media dilution

A 2012 Nielsen report showed that nearly two-thirds of consumers say they prefer to buy from companies that have implemented programs that give back to society.

concious consumption

millennials are searching for products with depth and meaning

Examples

Products that give back and eco-friendly products

La Columbe Coffee uses company ethics as a main selling point

Eco-friendly luxury hotels are becoming popular all around the world

Care

transparency

Guilt

Customization

millennials are questioning what makes a product special they want products no one else has

Examples

Bespoke products and handcrafted products

My DNA fragrance incorporates customerss actual DNA and is packaged in custom crafted glass blown bottles Levi’s Tailor Shop allows consumers to customize their own denim The Burberry bespoke program allows consumers to create their own trench

Individuality

exclusivity

choice

TIME SHARING

Millennials are interested in enjoying luxuries without commitment

Examples

Companies that allow all consumers to experience luxury on a bugdet

Bag Borrow or Steal lets customers rent luxury bags

Rent the Runway provides accesible luxury

Artsicle lets customers borrow fine art to feature in their homes

Accesibility

convinience

Practicality

Preconsumption

Millennials want to be in-the-know, they want the newest products and they want them first

Examples

Pre-launched products and co-creation

MUUSE post designs from emerging designers for consumers to vote on. Winning designs become available as limited editions on the website

Louis Vuitton sends exclusive invitations to customers for their collection prelaunch

FIRSTISM

newism

connection

involvement

SubCULTRE RECESSIONISTAS

Recessionistas use careful consideration when purchasing products. However, they still want to feel fabulous. They look for products that offer value. They don’t want the most for the money they want the best.

Insights
Millennials are experiencing luxury in new, interesting ways

For millennials, expensiveness no longer implies luxury Luxuries are more accessible than ever so millennials are searching for products that are speacial Millennials are looking for fullfillment in their product choices, luxury is about feeling about yourself and your consumptions The future of luxury will be about intimacy and the connection the consumer has with the product

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client profile
Heineken

Heineken was started in 1873 and first brewed by Gerard Heineken in Zoeterwoude in the Netherlands. Today Heineken sells all over the world. Heineken today produces Heineken, Heineken Light, New Castle Brown Ale, Amstel Light, Dose Equis, Tecate, and Tecate Light. Heineken prides themselves in superior employee training programs to guarantee exceptional products and customer service.

Client Recommendations
It is important for Heineken to create a connection with their customer. They can do this through things like comuinicating their story on packaging, and having pop up bars. Heineken could create an extension line directed towards creating intimate drinking experiences and feature a prelaunch event for their new product.