The market luxury is run over by a significant demographic change which was also accentuated by the pandemic caused by COVID-19. The sector is therefore forced to reinvent himself, mainly based on the needs of the new clientele belonging to the Generation Z, which is officially driving sales.
According to the latest analysis by Bain & Company, carried out in partnership with high gamma, brands must therefore approach a level of communication, commitment and listening in an innovative way, but above all take on a new role.
Based on what was declared by Federica Levanto, author of the study, il luxury world is witnessing a strong renewal in terms of consumers, so much so that in 2021 25% of the market was generated by that slice of the population that had never bought luxury goods before 2019.
Today those people are even more influenced by their culture and therefore represent the real challenge for every company that has to interface with one heterogeneous demand. The digital he then towed the young to the luxury, a world in which the shop seller no longer exists and is replaced by a consultant who accompanies the customer through different points of contact, such as with social content.
Thus a new way of working, new rhythms, new geographies e new distribution networks, where the experience on the Web must be as exciting as the on-site one.
“Today the customer goes directly to the brand that inspires him, finding there a kind of huge grid of subject programs, which can be product categories, prices, etc. The functional aspect of these products is very relative. They are purchased for other reasons, through an emotional condition of commitment, and they can all be equally profitable for the company, whether it is clothing, accessories or shoes "he explained. Claudia D'Arpizio, partner of Bain & Company and author of the study.
According to Bain & Company
Thus was born what the latter calls "Hero product", whereby the product category becomes less important than the model that will be the success of the company business.
Of fundamental importance is also the consolidation of the theme of Sustainable Development. In fact, the consumer tends to favor a brand that fully respects the environment. The logo then turns into something for which the consumer defines his choices and in which he sees his values reflected, wearing it with pride.
According to the study, this trend will cause the luxury sector to transform itself into "A wider cultural industry" which moves values in a civil society almost as if it had a political role.
“The sector has gone through this historic pandemic crisis unscathed, but question marks remain on the horizon. Certainly, the sector will have to address the issue of social inequalities. A difficult equation to solve between buying luxury goods, a symbol of social success, and the new philosophy of the brands, which put humanity and culture at the center of their strategy ", concludes Claudia D'Arpizio.
