Prestige Insights

THE PRESTIGE PROMISE:
Redesigning consumer luxury in 2017 whitepaper

The News Prestige Network white paper, called the Prestige Promise : Redesigning consumer luxury in 2017, is a collection of all the latest information on luxury around the world and the trends affecting luxury purchasing today.

This leading research gives the News Prestige Network the ability to create authentic brand narratives and campaigns that engage with luxury consumers. We share some of this thought leadership document with you on this page, and you can download the full version through the Download White Paper button above.

THE EVOLUTION OF LUXURY

Over the past decade, consumers have become more demanding of the luxury market, with political instability, economic instability, technological impacts and rapid social change resulting in an expedited evolution of the luxury market.

The periods in this evolution do not represent mutually exclusive events. In fact, the trends that have emerged are now combining to result into a far more personal, individualised experience of true luxury where a person’s status is determined by self-actualisation.

2005-2007

The time of “aspirational luxury”.

2008-2009

Subject to moral criticism during economic hardship, conspicuous consumption becomes less conspicuous.

2010-2012

Ultra affluents fuel luxury mini-boom in a post-recession period.
Energised by a movement toward experiences & authenticity

2013-2016

The beginning of the individualised product experience.

2017-2020

Ethically based conspicuous consumption, where the highest quality, design & experience meet the most unique & creative technological advancements. Status achieved through self actualisation as a luxury experience.

It is now the more intrinsic values, such as time, value, experience and personalisation that are driving luxury purchases today. Consumers explore more, researching a product both online, instore and through social groups before making a purchase. 

We’re making ethically based choices, demanding the highest quality, design and experiences and the most unique and creative tech advancements. And for that reason, we’re calling this the era of true LUXURY ON DEMAND.

Source: New Insights on Luxury & Luxury Consumers. IPSOS Media CT Luxury Insights Summit. April 29, 2015, How the Modern Consumer Is Changing the Meaning of Luxury. JCK. May 9, 2016, Tradition and heritage trump hip and new for luxury brand appeal: Ipsos. Luxury Daily. December 7, 2016, What is Luxury…In the Age of You? Brand Quarterly. October 12, 2015

the generational influences

Our insights showed clear differences in the generational views and their connections with luxury today. Millennials are changing the way luxury is defined so we have called them the Luxury re-inventors. For Generation X, luxury is all about celebrating their successes so they are our Luxury Celebrators. Finally the Baby Boomer ABs are loyal to their luxury brands and consistent with their approach to luxury and so they are our Luxury Substantials.

Millennials (18-34) ab
“THE LUXURY RE-INVENTORS”

NEWS CORP REACHES
2.54 MILLION

Represent 33% of the AB market


They are our luxury re-inventors. For them it’s about access over ownership. They care what luxury goods say about them and the expereince of buying the goods. They are looking for brand stories that deliver extraordinary experiences or inspire and help them on the road to success.

INSIGHT: It’s about access over ownership.

BRAND STORY: Brand stories that deliver extraordinary experiences or inspire to help them continue on the road to success and aid in reaching their goals.

Gen X (35-49) ab
“THE LUXURY CELEBRATORS”

NEWS CORP REACHES
2.61 MILLION

Represent 34% of the AB market

Gen X are our luxury celebrators. For them luxury symbolises success and achievement. They are more open to trying emerging brands and they are looking for brand stories that showcase the uniqeness of the brand and tap into exclusivity and status.

INSIGHT: Luxury Symbolises success & achievement. More open to trying emerging label brands.

BRAND STORY: Brand stories that showcase the uniqueness of the brand and taps into the exclusivity and status this audience seeks.

Baby Boomers (50+) ab
“THE LUXURY SUBSTANTIALS”

NEWS CORP REACHES
2.49 MILLION

Represent one-third of the AB market

Our Boomers or Luxury Substantials, value luxury expereinces and exceptional product. Luxury to them is choosing a trip to an exotic location or an activity they’ve always wanted to try.

INSIGHT: Value luxury experiences over products.

BRAND STORY: Experiences that integrate the brand’s story and delivering an experience that respects their identity and values.

Sources: Millennials and the New Luxury. MSL Group PBJS.  October 28, 2015; The Economist Group. June 2015

8 KEY TRENDS DRIVING LUXURY today

There are 8 key luxury trends that have been identified within our white paper research. While luxury is still about status, in this new world, luxury consumers want to “be” rather than “have” because it is less about what someone owns and more about who someone is. These 8 trends demonstrate how this translates to luxury products and experiences.

Transparent Purpose

Luxury brands today must live and breathe responsibility, sustainability, ethics and empathy.  In essence it’s about honesty, giving back and making the world a better place. 68% of consumers are prepared to pay more for products and services from companies committed to a positive social and environmental impact. 

Hyper Experiences

Where personal brand immersion and sensploration takes luxury to the next level. It’s here that “sensploration” or, the notion that money can buy what money can’t buy is taking luxury to the next level.

79% of prestige consumers would choose a luxury experience over a luxury item. From a societal point of view, we are witnessing the pendulum swing from the concept of ownership to experience, and as such, luxury is now central to the experience that a product can deliver.

Prestige Intelligence

Where technology becomes the luxury. No longer is the luxury market lagging in technological advancement, it is leading it. Quite simply, luxury has firmly stamped its logo onto tech. We’ve seen the Apple with Hermès example, but we can expect to see luxury travel goods incorporate inspired functionality such as fingerprint locking, built-in global-tracking, Bluetooth speakers and even Wi-Fi hotspots – as luxury goods and high-end travel go hand in hand, this is an obvious match made in heaven.

The Transcendent Self

The luxury of betterment and self-actualisation.

Self-improvement is the new black as 94% of millennials, 84% of Baby Boomers and 81% of Gen Xers say they are regularly seek new ways to better themselves. Self-improvement luxury is now largely about status, and it’s Millennials who are driving it.

Disruptive Collaboration

Capitalising on the emotional investment luxury consumers have with brands through often bold (and risky) collaborations. Collaborations, whether product or artistic, will be key in the next five years, with co-creation changing the way consumers will view your brand – we’ve seen the most outrageous collaborations, have real impact.

True Individualisation

The luxury of betterment and self-actualisation.

86% of prestige consumers say luxury is in the eye of the beholder. So, when searching for more individuality and originality, everyone wants to distinguish themselves from others somehow. To become unique, many are looking for individualised products and services, particularly for distinction in niches.

Rarity Reclaimed

With consumers saying that 30% of luxury brands are at risk of “losing their exclusivity” this trend is seeing the return of rarity to centre stage. Perhaps the clearest breakdown of modern luxury today is what lies between true luxury and mass luxury. While the market will always benefit from both groups of consumers it is the opportunity to reclaim luxury as something rare.

 

My Legacy Label

The tangible and intangible value a luxury item holds for future generations. Luxury goods hold their value and can last a lifetime and as such offer both a tangible and intangible value to pass down the line. Generation X, in particular, grasps this value and is driving the shift from tradition to legacy. In doing so they are evaluating luxury products from a future perspective both financially and emotionally.

 

 

Source: The Prestige Promise- Redesigning Consumer Luxury in 2017

 

 

 

 

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