![]() ![]() ![]() “They value the opinions and experiences of their peers and trust recommendations from people they trust. Millennials tend to rely on community recommendations and word-of-mouth when making luxury goods purchases, says Olivia Plotnick, founder of Wai Social, a Shanghai-based social media agency. “To create a strong brand image, it’s essential for brands to consider how these consumers perceive their brand through all their senses, and offer amenities that are appreciated and leave a lasting impression,” she says.Īs well as younger celebrities in the music and entertainment industries who serve as influencers, luxury brands should embrace micro influencers who produce the right type of content “because younger consumers can relate to them in more tangible ways,” she adds.Ĭhinese actor Yang Yang was named a brand ambassador for Valentino in May 2023. Jaehee Jung, a professor of fashion and apparel studies at the University of Delaware, who studies the psychology of clothing and consumer behavior across cultures, says brands must recognize that Gen Z and millennials value personalized experiences and derive satisfaction from in-store environments. While communication channels, consumer interests, and popular culture may evolve, Wang explains that the core values luxury brands offer, such as extraordinary experiences and high social identity signaling value, remain consistent. “Brands must identify the platforms, content, and media preferences of their consumers in order to effectively communicate with them,” she says. Wang Yajin, a professor of marketing at China Europe International Business School (CEIBS) based in Shanghai, stresses the importance of understanding where “target consumers spend their time,” especially in China’s digital and mobile-dominated consumer market. Instead of focusing on selling and data collection, brands should leverage social media platforms such as WeChat, Weibo, Xiaohongshu and Douyin, and live-streaming and mobile games to foster a sense of community and interactivity. McKinsey suggests that luxury brands need to adopt a different approach when targeting Chinese millennials. Social media engagement trumps data collection “From products to communication to branding, luxury has progressively evolved to a younger sector, and to cater to ever younger consumers.” “The future has always belonged to future generations, and now they even shape it,” Siboni says. Siboni points out that China’s post-1980s generations already accounted for more than half of Chinese consumer spending on luxury in 2018. Ī more youthful market will disrupt luxury’s growth path, says consultancy firm Bain in a 2018 report, which projects that millennials and Gen Z (born between 19) will compose 55 percent of the global market by 2025. “Chinese millennials and Gen Z are instrumental in the success of luxury brands in the world, even more so in China,” Jonathan Siboni, founder and CEO of Luxurynsight, a Paris-based data intelligence firm, tells Jing Daily. According to industry experts, these two demographics will comprise a significant portion of the market in the next few years.īy 2025, millennials (born between 19) will account for 40 percent of the global personal luxury goods market, according to a 2017 report by Bain & Company and Farfetch. The future success of luxury brands in China relies on their ability to effectively engage with the nation’s millennial and Gen Z consumer groups. ![]()
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