Written By: Jacob Maslow
Accommodating the desires and needs of the generations with spending power is one of the main must-dos of any business that aims to grow their profits. While Millennials (born between 1980 and 1994) still purchase half of their goods in stores, Generation Z (born after 1995)is made of shoppers who prefer to purchase everything online. While many still visit department stores, Gen Z gravitates towards taking care of all their needs online – which is why retailers are focused on making sure these young clients are offered a personalized experience when shopping on their PC or, more often than not, on their phone.
Despite the fact that Millennials are considered a very eclectic generation, fact is that they have a ton of spending power – not only for the near future, but long-term. Companies recognize this fact, and, as a result, gravitate towards branding themselves towards this specific generation. Together with Generation Z, which is now comprised of teens and very young adults, Millennials are young, often prosperous consumers – with a seemingly high interest in online shopping, as well as luxury products, from posh watches to designer attire and from diamonds to pearl jewelry. Not only do both Millennials and Gen Z lean into luxury products, but they also seek a genuine engagement with the brands they are shopping from, often selecting companies that allow them to self-express and that represent their values.
The Fall of the Department Store Model: 3 Luxury Brands Focused on Catering to Gen Z
1. Modern Meets Tradition: Tag Heuer
When you think fine Swiss watches, you rarely think teenage and very young buyers – except when the brand is Tag Heuer. The brand’s latest campaign was designed to grab the attention of both Millennials and Gen Z by using a model from the very young generation: model / actress Cara Delevigne. Tag Heuer’s CEO Jean-Claude Biver explained their smart choice, saying: “needed someone disruptive yet elegant like Cara to open our minds to the brashness and boldness of today’s youth”. The campaign brought Tag Heuergreat success and, as anticipated, new buyers from the Millennial and Gen Z generations suddenly became loyal fans of the brand’s new traditional-gone-modern image.
2. Trendy Custom Jewelry: Khazzam
Alexandra Ainatchi, the creator of B. Khazzam’s collection, took into account Millennial spending habits and got inspired by the younger generation’s interests, converting pop culture symbols into trendy pieces of jewelry. Since the Millennials and the Gen Z-ers are already interested in personalized, symbolic jewelry, the collection seemed like a step in the right direction. One of their most popular styles are the Wheel Rings, featuring designs inspired by the uber-popular fidget spinner – with the difference that the former comes in deluxe gold, enriched with sparkly diamonds.
But the brand did not stop here in trying to appeal to the younger generations. At one of their launches, Khazzam offered the customers the possibility of personalizing their jewelry right then and there, with the option of selecting their gem of choice and incorporating it into an exquisite piece of jewelry. In addition, the brand also offered their younger clients less traditional gem cuts, such as rose-cut and rough diamond pendants, complete with the option of engraving the client’s initials on the stone.
3. A Millennial Favorite: Gucci
In the recent years, Gucci has managed to become a teen and youth favorite – and a constant presence on Instagram, worn on repeat by the most popular social media influencers. And the numbers say the same thing: in the first half of 2018, Gucci’s sales grew by almost 50%. The image of the brand took a younger-focused route back in 2015, with the new creative director Alessandro Michele, who started incorporating an eclectic mix of colors and patterns into the designs, specifically targeted to the younger clients. And the brand took the same vibrant and bold direction when it came to their accessories as well, with picture-perfect bags in bold hues, matching sunglasses and large, easy-to-spot logos displayed on every accessory piece.
DISCLOSURE: The author has no stake in the listed equities
The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer
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