We all know what Millenials are because the online industry seems to turn around their necessities. But, a new segment of the population is winning portions of the online cake, and even though Luxury Brands are specially reluctant towards digital innovation, it seems that they are starting to embrace this new segment through some of their products.
SAY HELLO TO GENERATION Z
I’m sure that you know a few, it’s just that you haven’t named them yet.
Generation Z are those who were born near 9/11 and the world-wide financial crisis. They didn’t live the digital-revolution, but instead, they are “tech-genius”. They are 24 hours connected to their mobiles and to social media, and they are definitely different from the rest of your consumers.
Specially, one characteristic that they share when shopping online is that above all, they prioritize experiential and inspirational purchases that they can share on social media. According to Piper Jaffray’s 2015 survey, Generation Z’s favourite app is Instagram. “Their entire life, if it’s not shareable, it didn’t happen,” says Merriman. Piper Jaffray also reports that teens now spend 22% of their income on food, up 7% from 2005, particularly in Instagram-friendly locations like Starbucks.
In a few words, they spend less due to the environment where they grew up, and what they purchase comes from a personal inspiration, with the aim of becoming a shareable experience.
ARE LUXURY BRANDS REACTING?
2016 is going to be definitely the year where fashion and luxury brands are embracing digital as part of the organization. During 2015 brands have being trying some online innovations, they have settle their social media profiles, e-commerce etc.
But this year is when brands are going to engage with these consumers and I’m going to show you three clear examples, that have recall my attention – Two of them focussed on product, and another focussed on branding, so you can get all kind of inspiration for your business!
DIOR POISON GIRL
Who didn’t hear from this launch?
Saint Valentine’s is a special moment for the fragrance sector, and Dior wanted to take leadership on this period by launching Poison Girl in a bid for a younger demographic’s interest.
With the hashtags #IAMPOISON #POISONGIRL they teased their followers on social media to wait for the launch of the new fragrance the 1st of February.
Everything in this new product is related to Generation Z: The narrative of the campaign, the high use of social media to launch the perfume, and the entry-level cost of the product for being a Luxury Brand.
See here the full video ad.
BLACK OPIMUM NUIT BLANCHE
Similar to Dior, Yves Saint Laurent launches near Saint Valentines’ day a new fragrance, range from the original Opium, Opium Nuit Blanche. However, this is not the only characteristic that both perfumes have in common:
- Both fragrance’s universe are around the night, partying in a big city, and seduction.
- They both made a big buzz on social media, with a special focus on Instagram.
- Both brands aim for a younger consumer through an entry-level cost luxury product.
However, YSL goes beyond with an olfactory experience, and invites the user to “Live model Edie Campbell’s night trip through a unique digital multiscreen experience on yslblackopium.com”
Through this experience, YSL goes one step beyond in their aim of reaching Generation Z. It couldn’t be a better idea to introduce the user inside a story, where they can be closely connected with their 6millions followers-favorite-model Eddie Campbell.
Is there something more inspirational and shareable? Check here the full version of the video ad, and I really invite you to try their multiscreen experience!
Luxury brands can offer special products for Generation Z, or they can also position themselves as Generation Z’s brands. This isn’t that common between Luxury and Fashion brands, because Generation Z’s incomes right now are none: In the best scenario they come from rich families, but the average are normal students (But wait until they grow up).
Nevertheless, this is in fact possible for those brands which cash-cow products are affordable. This would be the case of Calvin Klein, which underwear and fragrance divisions have the biggest share on the brand’s profits.
This GenerationZ-targeting, social media-friendly, kinda sexual mega-campaign, tapped big-name celebrities, lesser known influencers to star in campaign video and still images — rolled out on their respective Instagram accounts — detailing what they do in their Calvins.
The first famous spokesmodel to share her video? None other than Kendall Jenner, who has been a face of the brand for about a year now. The reality TV star-turned-supermodel claims in an Instagram posted Tuesday afternoon that she “want[s] to be with you” in her Calvins.
Concluding, we have seen three common elements that are a must if you want to reach Generation Z: The price has to be low in the range of luxury products, social media has to be the platform chosen to launch the ad in order to make it viral and shareable, and the narrative has to be about seduction (don’t forget that these teenagers are still single!).
Now, time to watch the __ In #MyCalvins video ad, and have a wonderful week!