Luxury: Millennials and Gen Z Are Transforming Luxury: The Era of Experiences, Identity and Meaning
- InsightTrendsWorld
- 5 hours ago
- 10 min read
Why is the topic trending?
Changing Definitions of Luxury: The article highlights a fundamental shift in how younger generations (Millennials and Gen Z) perceive and define luxury, moving beyond traditional markers like exclusivity and prestige to prioritize experiences, identity, and meaning. This transformation is a significant topic for the luxury industry.
Impact on Consumer Behavior: The evolving values of these key consumer demographics are directly influencing their purchasing decisions and brand engagement within the luxury market, making it crucial for brands to understand and adapt.
New Research Findings: The article is based on a new report, Assembly’s “New Code of Luxe,” which specifically investigates these changing patterns, adding data-driven insights to the discussion.
Implications for the Luxury Industry: The trends identified have significant implications for how luxury brands market, position, and sell their products and services to younger consumers, prompting industry-wide conversations and strategic adjustments.
Overview:
The article discusses the findings of Assembly Europe’s “New Code of Luxe” report, which reveals that Millennials and Gen Z are redefining luxury by prioritizing experiences, identity, and meaning over traditional luxury values like exclusivity, craftsmanship, and prestige alone. Based on research with ultra-high-net-worth shoppers, particularly high spenders in fashion, jewelry, and travel, the report identifies three key trends that are driving this transformation and outlines the implications for luxury brands and retailers.
Detailed Findings:
Shift in Priorities: Younger generations are increasingly prioritizing experiences, identity, and meaning over accumulating possessions.
Experience as the "New Centurion": Spending on wellness, travel, and experience-focused luxury is projected to grow at over twice the rate of luxury goods for younger shoppers. Brands now compete with those delivering immersive, identity-defining experiences.
Power of Iconic Heritage and Cult Appeal: Luxury fashion is becoming polarized. Timeless heritage icons like Hermès and Chanel remain strong, while rising cult labels such as Loewe, Jacquemus, and Miu Miu are capturing the imagination of younger generations, with significant growth in search interest. Over 50% of luxury shoppers extensively research their options.
Beauty as a Ritual of Self-Expression: 71% of luxury shoppers express pride in their cultural identity, and 42% seek brands that reflect their personal values. Beauty is emerging as a central pillar of luxury, driven by premiumization and a rising focus on wellness, with some beauty brands seeing significant spikes in search interest.
Implications for Retailers and Brands: Showcase how products complement luxury experiences and modern lifestyles. Utilize virtual try-ons, AR experiences, and cinematic storytelling to connect offerings to broader experiences. Heritage brands need to infuse innovation to engage younger audiences. Cult favorites need deeper engagement through long-form narratives, curated partnerships, and custom digital assets. Advertisers should lean into hyper-local storytelling and cultural relevance, collaborating with local influencers, artisans, and creators.
Key Takeaway:
Millennials and Gen Z are fundamentally transforming the luxury market by placing a higher value on experiences, personal identity, and meaning, necessitating a shift in strategies for luxury brands that need to adapt to these evolving priorities to remain relevant and engage with these key consumer segments.
Main Trend:
The Experiential, Identity-Driven, and Meaning-Centric Evolution of Luxury Consumption by Younger Generations: Millennials and Gen Z are reshaping the luxury market by prioritizing experiences, the expression of their identity, and brands that align with their values and offer personal meaning, over traditional status symbols and material possessions.
Description of the Trend (please name it):
The Luxe Redefined: This trend describes the fundamental shift in the definition and drivers of luxury consumption among Millennials and Gen Z. It moves away from traditional notions of exclusivity and prestige towards a focus on personal enrichment through experiences, the articulation of individual and cultural identity, and the alignment with brands that offer deeper meaning and resonate with their values.
What is consumer motivation:
Seeking Personal Growth and Fulfillment: Younger generations prioritize experiences that contribute to their personal growth, wellness, and sense of adventure over simply accumulating material goods.
Expressing Individuality and Cultural Identity: Luxury purchases are increasingly seen as a way to communicate one's unique identity and cultural heritage.
Aligning with Values: Consumers are motivated to support brands that reflect their personal values, including ethical and social considerations.
Desire for Meaningful Connections: They seek brands and experiences that offer deeper engagement and a sense of personal resonance.
Preference for Authenticity: Younger generations value genuine experiences and brands that are authentic in their messaging and actions.
What is driving trend:
Shifting Societal Values: Broader cultural changes are influencing what younger generations consider valuable and aspirational.
Influence of Social Media: Social media platforms facilitate the sharing of experiences and the expression of personal identity, shaping luxury aspirations.
Economic Factors: While the research focuses on ultra-high-net-worth individuals, the broader trend of valuing experiences is prevalent across income levels within these generations.
Increased Awareness of Global Issues: Younger generations are often more attuned to social and environmental issues, influencing their brand preferences.
Desire for Personalization: The expectation of personalized experiences and products extends to the luxury market.
What is motivation beyond the trend:
Traditional aspects of luxury like craftsmanship and quality still hold value, but they are now often considered in the context of experience, identity, and meaning.
The desire for well-designed and aesthetically pleasing products remains relevant.
Description of consumers article is referring to:
Age: Millennials (roughly born between 1981 and 1996) and Gen Z (roughly born between 1997 and 2012). The research specifically targets these younger generations.
Income: The report focuses on "ultra-high-net-worth shoppers" and "high spenders" in fashion, jewelry, and travel, indicating a high-income demographic within these generations.
Gender: The article does not specify gender differences in these trends, suggesting they are broadly applicable across genders within these generations.
Lifestyle: These are likely digitally savvy individuals who are actively shaping and being influenced by online culture. They value personal growth, experiences, and aligning their consumption with their identities and values. They are also extensive researchers, particularly when it comes to luxury purchases.
Conclusions:
The article concludes that Millennials and Gen Z are driving a significant transformation in the luxury market, shifting the focus from traditional markers of status to more personal and experiential values. Luxury brands and retailers must understand and adapt to these evolving priorities by showcasing how their offerings complement modern lifestyles and resonate with the identity and values of these younger, influential consumer segments.
Implications for Brands:
Emphasize Experiences Over Materialism: Focus marketing efforts on how products enhance experiences, travel, and personal growth.
Foster Identity and Cultural Resonance: Highlight the ways your brand and products allow consumers to express their individuality and connect with their cultural heritage.
Align with Consumer Values: Clearly communicate and demonstrate your brand's commitment to relevant social and ethical values.
Embrace Digital Innovation: Utilize AR, VR, and personalized digital experiences to connect with younger consumers.
Engage Through Storytelling: Craft long-form narratives and leverage authentic partnerships to build deeper connections with audiences.
Personalize Offerings: Provide customized products and experiences that cater to individual preferences.
Focus on Beauty as Self-Expression: Recognize the growing importance of beauty as a form of personal care, wellness, and identity articulation.
Implication for Society:
A potential shift in societal values around luxury, moving away from conspicuous consumption towards more enriching and personal forms of value.
Greater emphasis on cultural identity and personal values in consumerism.
Implications for Consumers:
More opportunities to invest in experiences and products that genuinely align with their personal values and identities.
Increased access to personalized and innovative luxury offerings.
Implication for Future:
The luxury market will likely continue to evolve to cater to the values and preferences of younger generations, with a greater emphasis on experiences, digital engagement, and meaningful connections.
Traditional luxury markers may become less dominant in defining what is considered aspirational.
Consumer Trend (name, detailed description):
Purpose-Driven Experiential Luxury: This trend describes how Millennial and Gen Z luxury consumers are increasingly seeking out brands and products that not only offer high quality and aesthetic appeal but also provide meaningful experiences, align with their personal values and cultural identities, and contribute to their sense of self and personal growth.
Consumer Sub Trend (name, detailed description):
Identity-Reflective Consumption: This sub-trend highlights the tendency of younger luxury consumers to choose brands and products that serve as an expression of their individual identity, cultural background, and personal beliefs.
Big Social Trend (name, detailed description):
The Experience Economy Dominance: Across various sectors, experiences are gaining precedence over material possessions as primary drivers of consumer spending and perceived value.
Worldwide Social Trend (name, detailed description):
Global Emphasis on Values-Based Consumption: Consumers worldwide are increasingly making purchasing decisions based on the ethical and social values of the brands they support.
Social Drive (name, detailed description):
The Quest for Meaning and Self-Actualization: Younger generations are driven by a desire for purpose and personal fulfillment, which is increasingly reflected in their consumption choices, even within the realm of luxury.
Learnings for brands to use in 2025: (bullets, detailed description)
Understand the Values of Younger Generations: Deeply research and understand what experiences, identities, and values resonate most with Millennials and Gen Z in your target market.
Integrate Experiences into Your Brand Offering: Think beyond the product itself and consider how you can offer or connect to meaningful experiences.
Highlight Cultural Relevance and Identity Expression: Showcase how your brand and products enable consumers to express their individuality and cultural heritage.
Demonstrate Authentic Commitment to Values: Ensure your brand's actions genuinely reflect the values that resonate with your target audience.
Embrace Digital Platforms for Engagement: Utilize digital tools and immersive technologies to create engaging and personalized brand experiences.
Strategy Recommendations for brands to follow in 2025: (bullets, detail description)
Develop Experiential Marketing Campaigns: Create campaigns that offer or highlight opportunities for consumers to engage in experiences aligned with your brand.
Partner with Cultural Influencers and Creators: Collaborate with local influencers and artists who embody the values and aesthetics of your target audience to tell authentic stories.
Showcase Brand Values Through Action: Demonstrate your commitment to sustainability, ethical sourcing, and social responsibility through tangible actions.
Invest in Personalized Digital Experiences: Utilize data and technology to offer tailored content, product recommendations, and immersive brand experiences.
Curate Exclusive Experiences for Loyal Customers: Reward loyal customers with access to unique events, personalized services, or behind-the-scenes content.
Final sentence (key concept) describing main trend from article (which is a summary of all trends specified):
Millennials and Gen Z are leading "The Luxe Redefined" trend in 2025, where luxury consumption is increasingly driven by the pursuit of enriching experiences, the expression of personal and cultural identity, and the alignment with brands that offer deeper meaning and resonate with their core values.
What brands & companies should do in 2025 to benefit from trend and how to do it:
In 2025, luxury brands and companies must recognize and embrace "The Luxe Redefined" trend by shifting their focus from traditional notions of exclusivity and prestige towards emphasizing the experiential, identity-driven, and meaningful aspects of their offerings. This involves developing marketing campaigns that highlight how products enhance experiences and self-expression, authentically aligning with the values of younger generations, leveraging digital platforms for personalized engagement, and building genuine connections with consumers who prioritize purpose and cultural relevance in their luxury purchases.
Final Note:
Core Trend:
The Luxe Redefined: Millennials and Gen Z are transforming luxury consumption by prioritizing experiences, identity, and meaning over traditional status symbols.
Core Strategy:
Emphasize Experiences, Identity, and Values: Luxury brands should focus on how their offerings enable personal growth, cultural expression, and alignment with consumer values through experiential marketing, authentic storytelling, and digital engagement.
Core Industry Trend:
Transformation of the Luxury Market Driven by Younger Generations: The luxury industry is undergoing a significant shift as the values and priorities of Millennials and Gen Z become the dominant force shaping consumer behavior.
Core Consumer Motivation:
Seeking Personal Enrichment, Identity Expression, and Values Alignment in Luxury: Younger luxury consumers are motivated by the desire for experiences, products that reflect their individuality and culture, and brands that resonate with their personal beliefs and ethics.
Final Conclusion:
The findings of Assembly’s “New Code of Luxe” report underscore a fundamental evolution in the luxury market. Brands that understand and cater to the priorities of Millennials and Gen Z by focusing on experiences, identity, and meaning will be best positioned to thrive in this new era of luxury consumption.
Core Trend Detailed (The Luxe Redefined):
Description: This core trend signifies a fundamental shift in how luxury is perceived, valued, and consumed, driven primarily by the values and priorities of Millennials and Gen Z. It represents a departure from the traditional emphasis on status, exclusivity, and material accumulation towards a new era where luxury is increasingly defined by enriching experiences, the articulation of personal and cultural identity, and alignment with brands that demonstrate purpose and resonate with the values and beliefs of these younger generations.
Key Characteristics of the Trend (summary):
Experience-Centric: Younger consumers prioritize spending on travel, wellness, and unique experiences over physical goods.
Identity Expression: Luxury is seen as a tool for expressing individuality and cultural heritage.
Values Alignment: Consumers actively seek brands that reflect their ethical and social beliefs.
Meaningful Connections: A desire for brands and experiences that offer deeper engagement and personal resonance.
Authenticity Preferred: Value placed on genuine brand messaging and actions.
Digital Engagement: Expectation of personalized and innovative digital experiences.
Beauty as Self-Expression: Growing importance of premium beauty products as a form of self-care and identity.
Report Findings: Assembly's "New Code of Luxe" report provides data indicating a higher growth rate for experience-focused luxury.
Polarization in Fashion: Rise of cult favorite brands alongside heritage icons, both appealing to different aspects of the redefined luxury.
Emphasis on Cultural Identity: A significant percentage of luxury shoppers expressing pride in their culture and seeking brands that reflect it.
Growth of Wellness Sector: Increased spending on wellness and self-care experiences.
Digital Transformation of Luxury: Brands increasingly utilizing AR, VR, and personalized digital interactions.
How the Trend Is Changing Consumer Behavior (summary):
Prioritizing Experiences: Allocating more disposable income to travel, events, and well-being activities.
Extensive Research: Diligently investigating brand values and practices before making purchases.
Supporting Brands with Purpose: Choosing to buy from companies that align with their personal ethics and contribute to causes they believe in.
Seeking Personalization: Expecting tailored offerings and communications from luxury brands.
Engaging with Digital Platforms: Utilizing social media and immersive technologies to interact with brands.
Implications Across the Ecosystem (For Brands and CPGs, For Retailers, For Consumers, summary):
For Brands and CPGs: Need to shift marketing narratives towards experiences and values; embrace digital innovation; foster authentic connections; and personalize offerings.
For Retailers: Curate experiences alongside products; highlight brand values and heritage; leverage digital platforms for engagement; and cater to the demand for personalized beauty rituals.
For Consumers: Greater access to luxury experiences and products that resonate with their personal identities and values; increased emphasis on personal growth and well-being through luxury consumption.
Strategic Forecast: The "Luxe Redefined" trend will continue to dominate the luxury market in 2025 and beyond as Millennials and Gen Z become the primary consumers. Luxury brands that successfully adapt by prioritizing experiences, identity, and meaning will thrive, while those clinging to traditional notions risk losing relevance with these influential younger generations. The digital landscape will remain a crucial arena for engagement and personalization.
Final Thought: The transformation of luxury driven by Millennials and Gen Z represents a more holistic and personally enriching approach to consumption. It signifies a move towards valuing experiences and authentic self-expression, challenging the traditional definition of luxury and creating new opportunities for brands that can genuinely connect with these evolving consumer priorities.
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