By Jukka Aminoff
Millennials are a challenging generation in business and politics. It behaves a little bit differently than other generations and every luxury brand tries to understand them. It is said that Millennials are not brand loyal, and this makes everything quite challenging. It is also said that they are not interested in luxury, and therefore, the industry will face challenges in the future.
Millennials are interested in luxury but the main reason for negative futuristic scenarios is that luxury brands do not understand how Millennials behave, and where they spend their time. However, there are brands, which understand them, and they have succeeded to gain new fans. Gucci, Chanel, and Burberry have been successful with Millennials according to Business Insider.
The secret of success is that these brands have embraced digitalization. Gucci, Chanel, and Burberry are very active online, and they have reached to Millennials on social media channels, like Instagram and Snaphat. Other brands are also very active, and they are following the same steps.
We must not forget the importance of brand ambassadors like Kendall Jenner and others who are Millennials. They behave the same way like their counterparts. Hence, they have a powerful online presence on right digital channels. Therefore, luxury brands collaborate with them because people tend to follow people on social media channels. Not brands.
American Pop Singer Selena Gomez has 111 million followers on Instagram. In contrast, Gucci has almost 13 million. Brand Ambassador can be truly powerful if they use and wear luxury products because it is a recommendation for their fans.
The music industry is one of the cornerstones in pushing luxury trends forward and reaching to new customers. Music, songs, and music videos are consumed digitally, and therefore, it is one the easiest ways to get in touch with Millennials, globally. As an example, Pop Singer Rihanna endorses Chanel in her music video Pour It Up.
The digitalization of the luxury industry is going forward strongly because social media channels support high-quality videos and photos. This makes it easy to participate because luxury brands are very careful with their brand images. At the same time, brands have their own channels, which they can control, one hundred percent.
LVMH Innovation Award is a good example of how seriously luxury brands are taking digital transformation. The award brings together the luxury industry, and small tech startups, which will enhance the digital transformation forward, and bring Millennials closer to the industry.
The future of the luxury industry looks bright because it can use different marketing channels, and the industry is supporting new innovations. The combination looks brilliant. As a reminder, go there where your customers are and support their culture.