Luxury Consumers Session 3 PDF

Luxury marketing Session 3 – Luxury consumers Luxury Marketing Session 3 – Current trends and expectations Trends on the luxury market In 2025, Millenials and the GenZ will represent 40% of the luxury market. In 2024, Chinese consumers account for 40% of the luxury market, VS 20% for Eur...

Luxury marketing Session 3 – Luxury consumers Luxury Marketing Session 3 – Current trends and expectations Trends on the luxury market In 2025, Millenials and the GenZ will represent 40% of the luxury market. In 2024, Chinese consumers account for 40% of the luxury market, VS 20% for Europeans and 16% pour the Japanese. A growing part of the luxury clientele are Henrys (High Earners Not Rich Yet). Sources : McKinsey, Bain, Bernstein 23/09/2024 3 Luxury consumer expectations Product customization ABC Dior The use of technology to enhance the shopping experience Memomi’s connected mirror 23/09/2024 4 Luxury consumer expectations Offline shopping experience Burberry Open Spaces 23/09/2024 5 Luxury consumer expectations Product availability Rolex waiting list Values (ethics and durability) Frayme bag made from mushroom leather Stella Mc Cartney 23/09/2024 6 Luxury marketing Session 3 – Approaches of luxury consumption Self-concept Self-concept is the image we have of ourselves, how we perceive our behavior, abilities and unique characteristics. Self image Self esteem Ideal self How I see myself How much I like, The person I want at this moment in accept and value to be time myself Luxury consumption is a means to reinforce one’s self- concept, for those who value personal aspects as well as those who value interpersonal aspect. 23/09/2024 8 Conspicuous consumption Otherwise know as Veblen effect. Luxury consumption is a way to signal one’s status, wealth or power. 23/09/2024 9 Social comparision Luxury consumption is a means to belong in a social group. This includes aspirational consumption to imitate one’s reference groups. Membership group To which people belong as members Aspirational group That one aspires to join Reference group Used as a standard or frame of reference 23/09/2024 10 Uniqueness Luxury consumption is a differentiation tool in a uniform world, notably thanks to exclusivity and personalization. 23/09/2024 11 Extended self Knowingly or unknowingly, intentionally or unintentionally, we regard some of our possessions as parts of ourselves. The extended self is our individual self augmented by the possessions that we consider as parts of ourselves. Luxury consumption is an opportunity to express one’s identity thanks to special items that represent something we associate with or want to display. 23/09/2024 12 Luxury marketing Session 3 – Typologies Han’s typology of luxury consumers Patricians Parvenus Poseurs Proletarians Patricians are super-rich Parvenus are probably the Poseurs are fakers. They Proletarians are the left who pay a premium for nouveau rich who have buy fake goods to outs in socio-economic inconspicuously branded suddenly amassed big demonstrate their affinity status. They do not buy products. They do not futures and are trying to the above two groups. luxury goods and do not look for explicit signalling show they have arrived. They would also use signal either. but largely focus on They love explicit explicit signalling. subtlety. signalling. Source : Han et al., 2010 23/09/2024 14 Kapferer’s typology of luxury motives Luxury as an Art de Vivre Luxury as a creative art form When consumers seek the beauty of objects, the When consumers seek the creativity and excellence and authenticity of products, and a sensuality of products, and see them as a means unique experience. to express their personnality and singularity. Luxury as a timeless safe bet Luxury as a unique and exclusive pleasure When consumers seek the longevity and When consumers seek the scarcity and reputation of renowned institutions to express uniqueness of products, and take pleasure in their social status. being part of an exclusive minority. Source : Kapferer, 2012 23/09/2024 15 Kapferer’s typology of luxury motives Luxury as an Art de Vivre Luxury as a creative art form Luxury as a timeless safe bet Luxury as a unique and exclusive pleasure 23/09/2024 16 Luxury marketing Session 3 – Bourdieu and luxury Bourdieu’s theory of taste and distinction Taste is High a social weapon. Low Legitimate Illegitimate Sacred Profane Beautiful Ugly Distinguished Vulgar Pierre Bourdieu 23/09/2024 18 Bourdieu’s 3 capitals Knowledge, skills and tastes that come from education, experience, social background, and give credentials. Cultural capital Possession of a network of relationships, memberships that What you know provide one with credentials. Ex: family, social class, political party, alma mater etc. Financial means Multiplier Economic capital Social capital What you have Who you know 23/09/2024 19 Bourdieu’s capitals in luxury consumption 23/09/2024 20 Bourdieu’s capitals in luxury consumption How do the 3 capitals influence the decision to apply for an Automobile Club membership? Automobile Club - Paris 23/09/2024 21 Bourdieu’s capitals in luxury consumption A taste for the automotive world, for art and conferences Automobile Club - Paris Have two sponsors, be accepted by the 21 The financial means to keep members of the up with membership fee, recruitment comitee donations, restaurant etc. 23/09/2024 22 Bourdieu’s habitus Habitus It’s the built-‐in, subconscious way that we perceive and categorize things in the world, because of how we were raised, without knowing that we’re doing it, that structures our tastes and actions. 23/09/2024 23 Luxury consumption and habitus How does being a member of the Automobile Club influence the 3 capitals? Automobile Club - Paris 23/09/2024 24 Luxury consumption and habitus New knowledge through new connections, events, conferences, discussions, etc. Automobile Club - Paris New relationships The connections with members from made at the Club may the club and possibly provide new lucrative their own networks. job opportunities. 23/09/2024 25 Luxury marketing Session 3 – A new generation of luxury consumers Characteristics of GenZ Entrepreneurship Open mindedness Creativity Self expression Values and purpose 23/09/2024 27 Marketing shock n°1: GenZ is an archipel Coexistence of opposed forces within GenZ - Heightened individualism and expression of one’s Sneakerheads quirks and singularities, Fashion ghosts - Mimicry, notably on social media GenZ is like a multitude of small Queer Reality TV islands/tribes, each with its specificities, culture and contradictions. 23/09/2024 28 Marketing shock n°2: purchase and price GenZ’s top3 priorities: - Choice - Proximity of salepoint - Availability GenZ buyers are knowledgeable, even over-informed and paranoid. They deny the pricing power of luxury and advocate for transparency, second hand and novelty. 23/09/2024 29 Marketing shock n°3: GenZ mean business GenZ consumers are ambitious and eager to financially succeed (some of them even are teenpreneurs). They wish to be considered as partners rather than targets. 23/09/2024 30 Marketing shock n°4: Visual natives GenZ consumers are visual natives: they have an artistic eye, are creative, can digest many visual images at the same time. They put images before words, and wish to co- create rather than create. This changes the way luxury brands communicate towards this audience. 23/09/2024 31 Marketing shock n°5: an emotional generation GenZ consumers use their emotions and feelings to assess the authenticity of an offer, a message or an experience. Luxury brands must deal with the important sensitivity of GenZ consumers, and the fact that their feelings are not only their own, but stem from collective experience (ex: social media). 23/09/2024 32 Marketing shock n°6: a need for stimulation GenZ consumers are addicted to content in terms of quality and quantity. Video content is at the heart of their stimulation. Contrary to GenX and GenY that hop from one content to the other, GenZ are ad-blockers. Product placement has become a safe bet for brands wishing to provide GenZ consumers with uninterrupted content. However all types of content that create stimulation are welcome. 23/09/2024 33 Marketing shock n°7: influence GenZ consumers are influencer natives. They believe everyone may use their influence potential when need be. GenZ consumers are also obsessed with truthfulness and authenticity, which means that they don’t look kindly on jupiterian influencers and value strong, authentic engagements. They enjoy an organic communication with a touch of strass. 23/09/2024 34 Marketing shock n°8: indignation GenZ consumers believe they can change the world through their consumption and “influence power”. They are ready to stand for what they think is right. Indignation can be difficult for brand crisis management: it comes in the form of public humiliation topped with irony. Ultimately it can result into temporary boycott. GenZ consumers usually end up forgetting the transgression after suitable time has passed. 23/09/2024 35 Marketing shock n°9: stereotypes As an “archipel”, GenZ is a multidimensional, multitribal and multicultural generation. Therefore, GenZ consumers despise stereotypes. GenZ’s eagerness for inclusivity, benevolence, social justice and freedom redefines the criteria for attractiveness and sex appeal. 23/09/2024 36 GenZ tribes Body positivists Fluid performers Hypebeasts Passionate about fashion and Mostly women who do not fit Non-binary individuals who streetwear, in research of usual beauty standards. They believe in fluidity when it coolness, want to impress their are beauty fighters who value comes to gender or sexuality community and express their mental health. themselves. 23/09/2024 37 GenZ tribes New healers Senti-mentals Teenpreneurs They communicate on their They believe in healing their They believe in empowering feelings and emotions, as well body and soul thanks to the youth, in their power to as those of their community. natural remedies create and convince through They believe in being in and a good lifestyle. digital tools. listening to your feelings. 23/09/2024 38 GenZ tribes Time travelers Shock travelers They like vintage, enjoy They are benevolent revisiting the past and their adventurers. They are informed childhood. They value family. activists who want to discover Mostly child-like women. the world to protect it. 23/09/2024 39 GenZ tribes Zcologists Enthusiasic witches They want to save the world, Mostly young girls who value put pressure on brands and spirituality and want to plead for a collective action to commune with nature. change consumption patterns. 23/09/2024 40