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An exploration of the luxury market through trends, insights and expert opinions
How can luxury brands attract discerning self-purchasing females? With creative and engaging video campaigns, says Marty Hurwitz, co-founder of MVI Marketing.
One thing we know for sure about Millennial luxury consumers is that they can smell saccharin and sycophantic marketing a mile off.
For some luxury brands, it’s been an uphill struggle to capture the interest of Millennials. Even more so when it comes to the most powerful aspirational consumer demographic: Millennial self-purchasing females, or SPFs, as my team and I call them.
We recently completed a new round of quantitative research with US-based SPFs, aged from their mid-20s to their late 30s, in order to better understand the growth opportunities they offer the luxury sector. This study focused on three core product segments of interest not only to this audience but also for luxury groups: jewellery, shoes and hotels. And what did we find? That the three most prominent brands achieving success were those most engaged with SPFs.
In the jewellery space, more than 51% of respondents already buy jewellery for themselves. But one particular brand shines for Millennial SPFs: Tiffany & Co, with respondents to our study ranking the US brand as their luxury jeweller of choice.
The traditional marketing paradigm that luxury brands have long adopted is only alienating Millennial luxury shoppers.
Luxury shoe brand Jimmy Choo, an enduring style innovator that is hardly bashful with its pricing, also ranked highly in our research. Corroborating this, nearly 60% of respondents said they will spend up to £115 ($150, €130) on their next shoe purchase.
And while a stalwart success among hoteliers, Marriott is unquestionably gaining traction with a younger female audience, drawn in by its future-facing service and accessible appeal to ambitious women guests.
But what do these three brands, from such distinct segments, have in common? What are they doing right that so many other luxury brands are missing? The answer is content. Or more specifically, video content.
One thing we know for sure about Millennial luxury consumers is that they can smell saccharin and sycophantic marketing a mile off. Anything that closely resembles something their parents did, owned or even liked will turn them off, so the traditional marketing paradigm that luxury brands have long adopted will only alienate them.
But content that tells a real, playful or experiential story will capture their interest. And that's where these brands – Tiffany & Co, Jimmy Choo and Marriott – stand out, by producing engaging and immersive video content. In fact, Marriott boasts its own in-house video studio, as large as some movie companies, driving daily content for regular distribution to younger target consumers.
Self-purchasing females are at the beginning of 30-plus-year spending cycle but, much like home-buying, marriage and kids, they’re taking their time getting started.
And as witnessed earlier this year, Tiffany & Co is turning its content towards youthful films that promote both its new store designs and aspirational silver jewellery collections as points of entry and allure for new, younger consumers. Jimmy Choo’s ongoing product innovation – such as its collaboration with Virgil Abloh's Off-White – teamed up with its impactful and creative video campaigns also equate to a brand that is as engaging as it is empowering for SPFs.
There is a lot at stake for luxury brands when it comes to Millennial consumers. The SPFs we surveyed are at the beginning of a 30-plus-year spending cycle, but much like home-buying, marriage and kids, they are taking their time getting started.
But with SPFs’ luxury brand attachments in their formative stages, those brands that are bold enough to step away from traditional marketing to instead embrace creative video content will be able to achieve early success and potential long-term loyalty.
Explore how the luxury market is changing with our dedicated Luxury sector focus.