Findings:
A new Dotdash Meredith and Ipsos survey reveals a shift in luxury perception, particularly among Gen Z.
Gen Z consumers prioritize experiences and self-expression over material possessions and price.
The "feeling of luxury" is more important than the actual cost for many consumers, especially Gen Z.
Style is the most common entry point into luxury, followed by food and wine, beauty, and travel.
63% of luxury style purchases in the past year were made by Gen Z consumers.
Key Takeaway:
Luxury brands need to adapt their marketing strategies to cater to the changing preferences of consumers, particularly Gen Z, by focusing on experiences, personalization, and self-expression rather than just emphasizing exclusivity and high prices.
Trend:
The trend is towards a more inclusive and accessible definition of luxury, driven by a younger, more diverse consumer base that values experiences and self-narration over traditional status symbols.
Who is it about?
The survey focuses on U.S. adults aged 18-65, with a particular emphasis on the preferences and behaviors of Gen Z consumers.
Description of consumers/product:
Consumers: The report highlights the growing influence of Gen Z in the luxury market, emphasizing their preference for experiences, self-expression, and the "feeling of luxury" over price.
Product: The report covers a wide range of luxury products, services, and experiences, including style, food and wine, beauty, and travel.
Conclusions:
The luxury market is becoming more inclusive and accessible, with a broader definition of what constitutes luxury.
Brands need to focus on creating personalized experiences that resonate with consumers on an emotional level, rather than relying solely on traditional notions of exclusivity and high price points.
Implications for brands:
Brands need to understand and cater to the unique preferences of Gen Z consumers, who are increasingly driving the luxury market.
Marketing campaigns should focus on storytelling, self-expression, and creating memorable experiences.
Social media, customer service, and unboxing experiences are crucial touchpoints for Gen Z consumers.
Brands should prioritize creating a "feeling of luxury" through all aspects of the customer journey, not just the product itself.
Implications for society:
The changing definition of luxury could lead to a more democratized and diverse luxury market.
Brands may need to rethink their pricing strategies and focus on creating value beyond just the price tag.
The emphasis on experiences and self-expression could lead to more meaningful and fulfilling consumption for consumers.
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