5 Ways Gen Z is Transforming Luxury Brands

Every generation has its signature marks, and generation Z is no different in this regard. Due to this, luxury brands have to accommodate their offers and rethink how they do business to reach their sales goals and be successful. Thanks to several researchers’ efforts, plenty of guesswork is taken out of the equation and replaced with concrete data based on which the companies can make their decisions.

To save you the time you’d have to spend analyzing the trends on your own, we’ve narrowed it all down to one single list:

1. They want personalized offers

Generic marketing messages are out, a personalized approach is in. If you wanted to sell a piece of clothing to your audience, it would be a good idea to allow for several ways to customize it (such as offering various colors, fabrics, and so forth). Bonus points for providing an ​augmented reality mirror​ that lets their imagination run wild as they try it on in a virtual world.

A personalized approach works wonders because the customer gets exactly what they imagined before making the purchase and is also made to feel as though they matter. In other words, the top luxury brands are making sure they feel respected, welcomed, and valued. Since the likelihood of making a sale increase, their efforts are rewarded.

Of course, all of this requires additional resources on the company’s side. So although the sales may be higher due to using this approach, it takes more effort to close a sale. But it sure is worth it in the end.

2. They crave innovation

It is as they say: innovate or become irrelevant. The reason why lesser-known brands sometimes choose to imitate rather than innovate is that they don’t have the funds to experiment and risk focusing their efforts on the wrong thing. But as a luxury brand, your role is to set an example for others to follow.

Bear in mind that ​generation Z tends to be tech-savvy​. Given that these people have grown up with some smart device in their hands, this makes a whole lot of sense. While the older generations may lack the time or the willingness to learn new technology, it comes naturally to the younger demographics. This is all the more reason for the luxury  brands to embrace innovation and not be as intimidated by it.

3. They like to feel tended to

Being treated as just another brick in the wall is about the last thing anyone wants to be (generation Z-ers in particular). Take ​Hublot​, for example. Instead of being another Swiss watch brand, they choose to differentiate their approach from the rest of the cast by having their sales staff communicate directly with the customers through Skype. And generation Z sure does enjoy the attention they are getting from it, not to mention all the great help and shopping advice they get along the way.

This approach also utilizes the principle of reciprocity. In essence, since their sales representatives are taking all the time to help and advise them, people almost feel the need to repay some of that kindness, so in return, they end up making a purchase. Do you see why this is such a powerful way to generate sales?

4. They want to know what’s in it for them

Whereas the older generations were more interested in a company’s ethics (for instance, how environmentally friendly their products are, that they compensate their employees well, and similar), generation Z is all about ‘me, me, me’. In other words, luxury brands were forced to consider in their marketing campaigns that emphasize the benefits of joining their elite family. Think about the status that comes with wearing one of these luxury products; quality is no longer enough.

At the same time, the younger generation understands the importance of online safety, so they can also choose websites based on how secure it looks. Moreover, a high-quality VPN comes in handy when they want to actually buy something. ​According to a NordVPN review​, this cybersecurity tool is a great way to secure your internet connection and stay safe online by protecting valuable information.

5. They embrace competitiveness

More than any other, generation Z is competitive when it comes to their achievements, abilities, careers, status, relationships, and just about anything else in life. In fact, they want to showcase their achievements like trophies. And this is exactly what wearing a luxury brand represents. But keeping a piece of branded clothing or jewelry in the drawer like that won’t do any good – they want to showcase it!

Once again, this puts pressure on the companies to release nothing but top-of-the-line luxury products. After all, generation Z wouldn’t want to associate itself with anything but the best.

Conclusion

Times are changing, and if you want to stay on the top of the game, adapting is a must. This is why supply always mirrors what people demand

Gen Z transform luxury brands