M I L L E N N I A L

THE EVOLVING DEFINITION OF LUXURY Affluent millennials are drastically shifting the meaning of luxury.

No longer chasing big houses and fast cars, this generation is demandingmemorable experiences, bespoke products and human values.

SO WHAT ARE THE NEW RULES?

LUXURY DOESN’T MEAN STUFFYAs a reaction to the rigid values of traditional luxury, millennials are looking for their own alternatives codes that are fun, playful and engaging.1

The #LoveFreebies campaign for Harvey Nichols’ new rewards app features real CCTV footage of shoplifters in their stores, in a tongue-in-cheek ‘cops and robbers’ style video. The ad plays on the universal (and distinctly un-luxury) truth that everybody loves a freebie.

Amuse is a new online luxury-lifestyle publication aimed at ‘digital-by-default’ millennial

consumers. The story-rich video and editorial platform offers an authentic alternative to the

formats and subject matters of traditional luxury publications.

2ONLINE AND OFFLINE SERVICE MUST BE SEAMLESS

As digital natives, millennials no longer see any distinction between online and offline channels. For luxury brands to succeed, they must bring their renowned attention to service in offline channels into digital platforms as well, integrating the two and making every experience seamless from start to finish.

When it comes to digital strategy, there is no doubt that Burberry leads the way. The brand recognised early on that digital was vital to the success of business and they are fully committed to their online culture. What sets them apart is their unique content which includes microsites dedicated to the ‘Art of the Trench’,

Acoustic music and personalisation services.

3MILLENNIALS SEEK AUTHENTIC STORIES

Young, affluent consumers need to be convinced by a brand’s values, purpose and philosophy before they buy into it. The story of the founder, the heritage, the ingredients and the brand ambassadors are vital to a brand’s perceived authenticity.

Chanel not only brings the story of its heritage and philosophy into every element of the brand, but it does so in a way that perfectly makes use of digital platforms. The site Inside Chanel is a space that is dedicated

solely to its storytelling strategy, which it narrates through content, videos and images.

Buly 1803 is an 18th century brand that has recently had new life breathed into it. Steeped in the magical history of it’s origins, the luxury bath and body brand bewitches residents and tourists alike through its storytelling. The store itself is an exercise in time travel and gives visitors the chance to step into late 18th century Paris.

4LUXURY CAN BE MEANINGUL

Luxury can no longer rely on indulgent materialism, millennials want their brands to act like humans. This means that brands need to build integrity into their offer by communicating and acting on their social conscience.

Coca-Cola and musician will.i.am have collaborated to produce EKOCYLCE – a sustainable fashion and design concession on sale at Harrods. The entire range, which includes clothes, homeware and bicycles, is made entirely from waste materials and aims to educate consumers about sustainable lifestyle choices.

Luxury department store Selfridges is on a mission to eradicate single-use water bottles – a major threat to the

word’s oceans. As part of Project Ocean, Selfridges has pledged to remove all single-use bottles from its stores and restaurants

and has also launched an installation/ pop-up Water Bar, raising awareness for the cause by showcasing innovative alternatives

to plastic water carriers.

PAY ATTENTIONTO THE LOCAL

Millennials stay clear of cookie-cutter examples of corporate dominance. Instead, they yearn for companies that have ties with local communities and entrepreneurial influences. 5

Starwood is the latest hotel giant to launch a new breed of luxury, boutique hotels that move away from the mass-homogenised experience of chain hotels and instead focus on a strong sense of locality. This new lifestyle brand aims to ‘fill guests’ waking hours with happy, healthy and more meaningful experiences.’

6OWNERSHIP ISN’T EVERYTHING

For millennials, ownership is not only not a priority, but it is no

longer a definitive way to mark value. There is a growing desire

to experience ‘owning’ something without having to invest and commit

and this flexible attitude has given rise to the emergence of a new ‘sharing economy’ within the

luxury sphere.

RE/LABLD is a new digital platforms that offers a new and original way to buy and sell luxury fashion items online. It offers consumers the chance to submit items that want to sell and receive payment in the form of credits - meaning they can update an entire wardrobe without spending any money.

The Handbag Rental is an exclusive, members-only website that givesfashion-conscious consumers the chance to borrow luxury handbags within a safe and secure environment. Meaning that users can experience the thrill of ‘owning’ the season’s latest handbags without having to invest a small fortune each time.

7‘I EXPERIENCE’ RATHER THAN ‘I HAVE’ A 2014 Eventbrite nationwide study of millennials found that 78% would choose to spend money on a desirable experience orevent over buying something desirable.Millenials don’t want to merely collect ‘stuff’ – they want to acquire lasting memories. So the emphasis need to move away from the mere act of transaction and towards the experiential.

Showrooms have always tended to be observational experiences,

confined to looking and admiring.

But 45 Grand – the new and exclusive invitation-only health club from Nike+

– radically subverts these roles and offers a fully immersive, 360-degree

experience that sets a new bar for luxury showrooms.

ALISTAIR MILLAR

LAURENMURRAY

M + 44 (0)7815 429 923 (UK)alistair@butterflylondon.com

M + 44 (0)7950 935 456 (UK)lauren@butterflylondon.com