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See how Millennials are redefining
luxury, why they’re important to the
category, tips for engaging them and
best-in-class case studies
MILLENNIALS
& THE NEW LUXURY
WHY MILLENNIALS ARE
IMPORTANT TO THE
LUXURY CATEGORY
2
THE LUXURY
MARKET IS
GROWING >>>
$22.4
$27.4
$35.9
2009 2011 2013
In 2013, U.S. luxury
revenue reached
$35.9 Billion
…that’s +60%
over 2009.
Adults, aged
18-33, make up
13% of all luxury
consumption
and that number
is growing.	
  
13%	
  
Millennials are expected to outspend baby boomers, making them
the largest generational segment in the luxury market.
Millennials have a lot of buying power now
and will only increase as they get older.
$100K
$200
Billion
$10Trillion
Annual
incomes of
11.8 million
Millennials
aged 18-30
in the US
Estimated annual spending
power of Millennials
Projected lifetime
spending power of
Millennials
{ Sources: Mintel, American Express and Harrison Group, Unity Marketing, Mediapost.com, CarlsonRezidor.com, CNBC.com } 3
HOW MILLENNIALS
ARE CHANGING THE
DEFINITION OF LUXURY
4
THE LUXURY CONSUMER
HAS EVOLVED FROM
5
HIGH-NET-WORTH
INDIVIDUALS
“HENRY” – HIGH EARNER,
NOT RICH YET
They own a lavish
penthouse condo and have
a fat investment portfolio.
They have steady
cash flow, but little
accumulated wealth.
Many of today’s Millennial luxury shoppers fall
into a category of customer known as Henry.
“HENRY” THE LUXURY SHOPPER HAS
CHANGED THE LUXURY CATEGORY
6
FROM TO
BRAND POSITION: Exclusive Unique
PURPOSE OF SPEND: Acquiring Experience
BRAGGING RIGHTS: Brand Back-Story
SHOPPING FROM: Spontaneous Considered
SHOPPING INFLUENCE: In-store Digital
HOW THE DEFINITION OF LUXURY IS CHANGING
WHAT ‘LUXURY’ MEANS TO HYPER AFFLUENTS
63% of people who bought a luxury product in the past
year agree that the definition of luxury is not the same
as it was five years ago.
DECLINING
RARE
SOPHISTICATED
HERITAGE
PRETENTIOUS
ONE-OF-A-KIND
PRIVILEGED
REFINED
STATUS
EXPENSIVE
EXCLUSIVE
INDULGENCE
HIGHEST QUALITY
DESIGNER BRANDED
SPLURGE
UNIQUE
EXCELLENT REPUTATION
EXCELLENT DESIGN
LONG-LASTING
7{ Sources: Ipsos Media CT }EMERGING
CURRENT
Millennial Values:
quality, craftsmanship
and authenticity.
8{ Sources: Luxury Design Report, 2011; The Washington Post, 2015 }
Younger consumers value
experiences over tangible items.
According to market research at
Mintel, Millennials would rather spend
their hard-earned cash on activities
than on luxury goods.
They’re are all about putting a
premium on experiences and finding
opportunities to post a shareworthy
story or enviable experience to brag
about on their social channels. It’s
the new social currency.
9{ Sources: Mintel }
UNIQUE EXPERIENCES = NEW LUXURY
Millennial consumers don’t
necessarily want the things they
buy to define who they are, as
they don’t see their purchases as
achievements or trophies in the
way the Baby Boomers did.
Instead, they are collecting
memories like merit badges and
actively seeking unique
experiences.
10
LUXURY DOESN’T DEFINE THEM
NEW LUXURY CATEGORIES
ARE EMERGING
As a result, we’re experiencing a new evolution of
the term “luxury.” It no longer refers exclusively
to purchases such as handbags or jewelry. Now, it
includes high-priced farm-to-table foods and
craft beers, as well as pricey experiences such as
travel.
11{ Sources: CNBC.com }
With the digital age in full swing,
consumers are beginning to purchase
luxury brands online, with younger
consumers more likely to shop online
than any other group.
 
In the last 10 years, though, luxury
rental companies such as Rent the
Runway and Bag, Borrow, or Steal have
been cropping up on the Internet –
disrupting the luxury goods business
by allowing consumers to rent luxury
items temporarily instead of
purchasing them.
12{ Sources: Mintel, Bain Consulting }
EMBRACING TECHNOLOGY
When Baby Boomers first ascended to
the luxury market, they emptied their
pockets and never looked back. Products
were luxury because they were expensive
and expensive because they were luxury –
No questions asked.
 
Millennials, on the other hand, have
become a generation of Luxury Dabblers.
While 77 percent of Millennials prefer a
pared down lifestyle with fewer
possessions, they are still choosing to
spend their money somewhere. They
don’t need to own things because luxury
brands don’t represent who they are.
13{ Sources: PwC }
THE LUXURY DABBLERS
Today, only one in two consumers
agree with the statement “owning
things is a good way to show my
status in society.”
Four in five consumers agree that
there are sometimes real advantages
to renting over owning, and adults
ages 18 to 24 are nearly twice as
likely as those ages 25 and older to
say that access is the new
ownership.
14{ Sources: PwC }
ACCESS IS THE NEW OWNERSHIP
When it comes to luxury, young
consumers today care about quality and
accessibility.
They are happy to dabble in luxury
brands and experiences, as long as they
feel it’s something they deserve, is worth
the cost and allows them to keep a
mainstream profile.
As they do in every aspect of their lives,
Millennials do not accept something on
face value. They love a good backstory
and have a strong desire for authenticity.
15{ Sources: CMO.com }
DABBLING IN TODAY’S ECONOMY
In today’s market, Millennials’
penchant for discovering new
brands, high-quality goods and a
company’s heritage make them
natural luxury consumers.
But for them to justify a purchase,
luxury items or experiences must
have a functional, performance-
oriented reason for its higher cost.
16{ Sources: CMO.com }
MILLENNIALS SEEK VALUE
HOW YOU CAN WIN
17
We know that Millennials are a crucial demographic to reach in
order to endure in today’s landscape – the challenge for brands
is determining how. There are new rules and it’s important for
the luxury category to understand how to engage Millennials in
the right way.
Rare and extraordinary
experiences have
replaced aspirational
status symbols. Stories
trump trophies.
EXPERIENCE
Connect Millennials with real,
authentic movers and
shakers. More than anything,
they want exclusive access
to people, places and things
they would otherwise never
have the opportunity to
experience.
ACCESS
Help them visualize
continued success and
celebrate the journey
toward their goals.
Inspirational moments
are the new five star
service.
INSPIRATION
Give Millennials Experience, Access and Inspiration
18
WHO DID IT RIGHT?
19
20{ Sources: bizbash.com }
Lacoste’s Desert Pool Party
Four years in a row,
Lacoste has hosted the
Desert Pool Party at
the Coachella Valley
Music and Arts
Festival, a huge draw
for Millennials.
As a sponsor, Lacoste
creates a place where
celebrities,
fashionistas, bloggers
and music fans
attending the festival
can intermingle.
Guests are treated to a
truly VIP experience,
with Lacoste giving
them full access.
From mini golf, to
bocce ball, guests are
given many engaging
activities to choose
from.
 
And for the social
(media) butterflies in
attendance, Lacoste
gives away premium
items like flower
crowns, garlands and
more in exchange for
sharing on social
media.
21{ Sources: broadsheet.com.au }
Hermès’ Festival Des Métiers
The luxury fashion
house created a
touring cultural
exhibition that gave
consumers a peek
inside Hermès’
longstanding tradition
of craftsmanship and
commitment to the
highest standards of
quality.
Without giving away
too many secrets, the
exhibition featured
intimate
demonstrations by
masterful craftspeople
who work in the
renowned Hermès
workshops.
They illustrated the
various techniques
passed down from
generation to
generation to create
Hermès products by
hand.
 
Visitors had the
opportunity to meet
and exchange with the
Hermès artisans in a
one-of-a-kind
experience.
The luxury car brand
installed a pop-up
sensory experience in
New York, where
visitors could immerse
themselves in the
stories and sounds of
the luxury car brand’s
heritage. The
experience was called
“The Sound of
Porsche.”
Among rows of video
listening stations and
racks of vinyl records,
visitors discovered The
Sound Lab Virtual
Drive Experience, an
immersive and
acoustically treated
room that featured a
brand new 911 Carrera
4S Coupe. The
experience featured a
projection screen that
simulated a selection
of driving scenarios
while upbeat music
played to create the
sensation of a high-
speed drive.
 
In another corner,
guests could get
creative and draw their
vision of the future for
Porsche for the chance
to win a trip to the
Porsche Museum in
Stuggart, Germany.
22{ Sources: becauseexm.com }
Porsche’s Multi-Sensory Pop-Up
23
Emirates’ Launch in Boston
The international
airlines launched its
inaugural flight in
Boston with a
memorable event at
the Boston Logan
International airport, as
well as a celebratory
gala that included a
speech by the
Governor of
Massachusetts, with
performances by
America’s Got Talent
favorite, iLuminate, and
international superstar,
Enrique Iglesias.
To generate awareness
among a younger
audience, Emirates
hosted an Instagram
scavenger hunt
sweepstakes and
delivered weekly clues
with 15-second video
posts. The program
also hosted a Google
Hangout interview
with Emirates’
president, Sir Tim Clark
and the Wall Street
Journal, giving
consumers face time
with the executive for
the first time.
 
The program lead to
sold out flights from
Boston and created
equity for the brand.
{ Sources: MSL Group }
ABOUT MSLGROUP PBJS:
MSLGROUP is the 4th largest global PR firm. PBJS is a full-service experiential agency
with in-house creative, production, digital and video. Both within the Publicis Groupe
network, MSLGROUP PBJS is the fusion of these two divisions specializing in
strategic communications and engagement. Our joint capabilities allow our clients to
tell their story simultaneously across every channel imaginable.
CONTACT:
Lindsay Rowe
lindsay.rowe@pbjs.com
375 Hudson St. 14th Floor
New York, New York 10014
646-500-7673
www.pbjs.com

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Millennials & the New Luxury

  • 1. See how Millennials are redefining luxury, why they’re important to the category, tips for engaging them and best-in-class case studies MILLENNIALS & THE NEW LUXURY
  • 2. WHY MILLENNIALS ARE IMPORTANT TO THE LUXURY CATEGORY 2
  • 3. THE LUXURY MARKET IS GROWING >>> $22.4 $27.4 $35.9 2009 2011 2013 In 2013, U.S. luxury revenue reached $35.9 Billion …that’s +60% over 2009. Adults, aged 18-33, make up 13% of all luxury consumption and that number is growing.   13%   Millennials are expected to outspend baby boomers, making them the largest generational segment in the luxury market. Millennials have a lot of buying power now and will only increase as they get older. $100K $200 Billion $10Trillion Annual incomes of 11.8 million Millennials aged 18-30 in the US Estimated annual spending power of Millennials Projected lifetime spending power of Millennials { Sources: Mintel, American Express and Harrison Group, Unity Marketing, Mediapost.com, CarlsonRezidor.com, CNBC.com } 3
  • 4. HOW MILLENNIALS ARE CHANGING THE DEFINITION OF LUXURY 4
  • 5. THE LUXURY CONSUMER HAS EVOLVED FROM 5 HIGH-NET-WORTH INDIVIDUALS “HENRY” – HIGH EARNER, NOT RICH YET They own a lavish penthouse condo and have a fat investment portfolio. They have steady cash flow, but little accumulated wealth. Many of today’s Millennial luxury shoppers fall into a category of customer known as Henry.
  • 6. “HENRY” THE LUXURY SHOPPER HAS CHANGED THE LUXURY CATEGORY 6 FROM TO BRAND POSITION: Exclusive Unique PURPOSE OF SPEND: Acquiring Experience BRAGGING RIGHTS: Brand Back-Story SHOPPING FROM: Spontaneous Considered SHOPPING INFLUENCE: In-store Digital
  • 7. HOW THE DEFINITION OF LUXURY IS CHANGING WHAT ‘LUXURY’ MEANS TO HYPER AFFLUENTS 63% of people who bought a luxury product in the past year agree that the definition of luxury is not the same as it was five years ago. DECLINING RARE SOPHISTICATED HERITAGE PRETENTIOUS ONE-OF-A-KIND PRIVILEGED REFINED STATUS EXPENSIVE EXCLUSIVE INDULGENCE HIGHEST QUALITY DESIGNER BRANDED SPLURGE UNIQUE EXCELLENT REPUTATION EXCELLENT DESIGN LONG-LASTING 7{ Sources: Ipsos Media CT }EMERGING CURRENT
  • 8. Millennial Values: quality, craftsmanship and authenticity. 8{ Sources: Luxury Design Report, 2011; The Washington Post, 2015 }
  • 9. Younger consumers value experiences over tangible items. According to market research at Mintel, Millennials would rather spend their hard-earned cash on activities than on luxury goods. They’re are all about putting a premium on experiences and finding opportunities to post a shareworthy story or enviable experience to brag about on their social channels. It’s the new social currency. 9{ Sources: Mintel } UNIQUE EXPERIENCES = NEW LUXURY
  • 10. Millennial consumers don’t necessarily want the things they buy to define who they are, as they don’t see their purchases as achievements or trophies in the way the Baby Boomers did. Instead, they are collecting memories like merit badges and actively seeking unique experiences. 10 LUXURY DOESN’T DEFINE THEM
  • 11. NEW LUXURY CATEGORIES ARE EMERGING As a result, we’re experiencing a new evolution of the term “luxury.” It no longer refers exclusively to purchases such as handbags or jewelry. Now, it includes high-priced farm-to-table foods and craft beers, as well as pricey experiences such as travel. 11{ Sources: CNBC.com }
  • 12. With the digital age in full swing, consumers are beginning to purchase luxury brands online, with younger consumers more likely to shop online than any other group.   In the last 10 years, though, luxury rental companies such as Rent the Runway and Bag, Borrow, or Steal have been cropping up on the Internet – disrupting the luxury goods business by allowing consumers to rent luxury items temporarily instead of purchasing them. 12{ Sources: Mintel, Bain Consulting } EMBRACING TECHNOLOGY
  • 13. When Baby Boomers first ascended to the luxury market, they emptied their pockets and never looked back. Products were luxury because they were expensive and expensive because they were luxury – No questions asked.   Millennials, on the other hand, have become a generation of Luxury Dabblers. While 77 percent of Millennials prefer a pared down lifestyle with fewer possessions, they are still choosing to spend their money somewhere. They don’t need to own things because luxury brands don’t represent who they are. 13{ Sources: PwC } THE LUXURY DABBLERS
  • 14. Today, only one in two consumers agree with the statement “owning things is a good way to show my status in society.” Four in five consumers agree that there are sometimes real advantages to renting over owning, and adults ages 18 to 24 are nearly twice as likely as those ages 25 and older to say that access is the new ownership. 14{ Sources: PwC } ACCESS IS THE NEW OWNERSHIP
  • 15. When it comes to luxury, young consumers today care about quality and accessibility. They are happy to dabble in luxury brands and experiences, as long as they feel it’s something they deserve, is worth the cost and allows them to keep a mainstream profile. As they do in every aspect of their lives, Millennials do not accept something on face value. They love a good backstory and have a strong desire for authenticity. 15{ Sources: CMO.com } DABBLING IN TODAY’S ECONOMY
  • 16. In today’s market, Millennials’ penchant for discovering new brands, high-quality goods and a company’s heritage make them natural luxury consumers. But for them to justify a purchase, luxury items or experiences must have a functional, performance- oriented reason for its higher cost. 16{ Sources: CMO.com } MILLENNIALS SEEK VALUE
  • 17. HOW YOU CAN WIN 17 We know that Millennials are a crucial demographic to reach in order to endure in today’s landscape – the challenge for brands is determining how. There are new rules and it’s important for the luxury category to understand how to engage Millennials in the right way.
  • 18. Rare and extraordinary experiences have replaced aspirational status symbols. Stories trump trophies. EXPERIENCE Connect Millennials with real, authentic movers and shakers. More than anything, they want exclusive access to people, places and things they would otherwise never have the opportunity to experience. ACCESS Help them visualize continued success and celebrate the journey toward their goals. Inspirational moments are the new five star service. INSPIRATION Give Millennials Experience, Access and Inspiration 18
  • 19. WHO DID IT RIGHT? 19
  • 20. 20{ Sources: bizbash.com } Lacoste’s Desert Pool Party Four years in a row, Lacoste has hosted the Desert Pool Party at the Coachella Valley Music and Arts Festival, a huge draw for Millennials. As a sponsor, Lacoste creates a place where celebrities, fashionistas, bloggers and music fans attending the festival can intermingle. Guests are treated to a truly VIP experience, with Lacoste giving them full access. From mini golf, to bocce ball, guests are given many engaging activities to choose from.   And for the social (media) butterflies in attendance, Lacoste gives away premium items like flower crowns, garlands and more in exchange for sharing on social media.
  • 21. 21{ Sources: broadsheet.com.au } Hermès’ Festival Des Métiers The luxury fashion house created a touring cultural exhibition that gave consumers a peek inside Hermès’ longstanding tradition of craftsmanship and commitment to the highest standards of quality. Without giving away too many secrets, the exhibition featured intimate demonstrations by masterful craftspeople who work in the renowned Hermès workshops. They illustrated the various techniques passed down from generation to generation to create Hermès products by hand.   Visitors had the opportunity to meet and exchange with the Hermès artisans in a one-of-a-kind experience.
  • 22. The luxury car brand installed a pop-up sensory experience in New York, where visitors could immerse themselves in the stories and sounds of the luxury car brand’s heritage. The experience was called “The Sound of Porsche.” Among rows of video listening stations and racks of vinyl records, visitors discovered The Sound Lab Virtual Drive Experience, an immersive and acoustically treated room that featured a brand new 911 Carrera 4S Coupe. The experience featured a projection screen that simulated a selection of driving scenarios while upbeat music played to create the sensation of a high- speed drive.   In another corner, guests could get creative and draw their vision of the future for Porsche for the chance to win a trip to the Porsche Museum in Stuggart, Germany. 22{ Sources: becauseexm.com } Porsche’s Multi-Sensory Pop-Up
  • 23. 23 Emirates’ Launch in Boston The international airlines launched its inaugural flight in Boston with a memorable event at the Boston Logan International airport, as well as a celebratory gala that included a speech by the Governor of Massachusetts, with performances by America’s Got Talent favorite, iLuminate, and international superstar, Enrique Iglesias. To generate awareness among a younger audience, Emirates hosted an Instagram scavenger hunt sweepstakes and delivered weekly clues with 15-second video posts. The program also hosted a Google Hangout interview with Emirates’ president, Sir Tim Clark and the Wall Street Journal, giving consumers face time with the executive for the first time.   The program lead to sold out flights from Boston and created equity for the brand. { Sources: MSL Group }
  • 24. ABOUT MSLGROUP PBJS: MSLGROUP is the 4th largest global PR firm. PBJS is a full-service experiential agency with in-house creative, production, digital and video. Both within the Publicis Groupe network, MSLGROUP PBJS is the fusion of these two divisions specializing in strategic communications and engagement. Our joint capabilities allow our clients to tell their story simultaneously across every channel imaginable. CONTACT: Lindsay Rowe lindsay.rowe@pbjs.com 375 Hudson St. 14th Floor New York, New York 10014 646-500-7673 www.pbjs.com