Reasons why these luxury brands are preferred by millennials

It is no secret to anyone that millennials are the generation that can change various schemes that have been inactive for a long time. It is nothing new that this is known by the marketing and communication team of luxury brands.

Luxury houses have that aspirational dose that consumers have fallen in love with generation after generation and there are some brands that live in everyone's heart and do not pay rent. Whether for their designs, advertising campaigns or the celebrities they dress.

However, as we mentioned at the beginning, the millennial generation has differed in many ideas, lifestyle, and of course, their way of consumption, so even large fashion houses have had to find a way to stay current and be accepted by this group of young people born between 1981 and 1995.

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At De Última we took on the task of investigating which millennials' favorite luxury brands are and what lies behind these choices. So don't stop reading, there is a lot to know about why these young people prefer these brands compared to others that have a longer history or a broader career in the world of fashion.

Photo: Pexels

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In its Spanish edition, Harper's Bazaar magazine points out that the two luxury brands preferred by millennials are Gucci and Louis Vuitton (particularly for handbags). This result was revealed by a survey conducted by UBS Group AG, in said project of 2018, the opinion of young people between 18 and 35 years of age from the United States, China and some European countries was taken, and it was confirmed that millennials have contributed 85% to the growth of the luxury market of the previous year and according to their projections In 2025, it will represent 45% of total spending on luxury firms.

Photo: Courtesy | Instagram @gucci

Razones por las que estas marcas de lujo son las preferidas de los millennials

The report was taken up by Fortune magazine, where they focus on who spends the most on luxury brands and although we might think that the US or European markets are the ones who have the lead on the income that enters the assets of luxury brands, In reality, it is the Asian millennials who contribute a larger income when buying from these firms.

Photo: Courtesy | Instagram @louisvuitton

Fortune magazine also touches on another very important point for these two brands to continue to please millennials, and it is the part of e-commerce (electronic commerce), which had a boom during isolation. E-commerce has been essential for these brands that have dedicated time and effort to reinventing their shopping experiences by adding the acquisition of totally exclusive garments to their formula.

Although the luxury brands preferred by the millennial market are completely different, they have been able to listen to their audience and adapt to their purchasing criteria. Among these is exclusivity, respect for the identity of people and even care for the environment, but what motivates their buyers to keep these two firms in the taste of an audience that seems to have seen everything?

The economic magazine Brandequity in 2019 pointed out a series of important points among the millennial market. One is that the magazine predicts that millennial consumers will represent up to 50% of the luxury consumer market in 2025 (similar to the figure handled by UBS Group AG) compared to 32% in recent years.

Brandequity breaks down the dots to understand millennial consumption as follows:

Driven by purpose: People who bought luxury brands before the millennials did so for their history, craftsmanship, image, exclusivity, and superior quality.

Although quality and exclusivity continue to be sought, millennials seek transparency and authenticity without neglecting the relationship with the environment.

Photo: Courtesy @gucci

Live the moment: Although many economic studies carried out by banking entities have made it clear that millennials are the generation that saves the least, it is one of those that most pleases their tastes.

Brandequity maintains that in 2017, the desire to "live in the moment" was reflected in a rise of up to 50% in the net profits of the Italian firm Gucci, which allowed it to close the year as a fully profitable brand.

Photo: Courtesy @louisvuitton

Open to experimentation: Millennials are likely to try something new if it reflects their personal values ​​and passions. They are open to experimenting with alternative business models that have emerged in the luxury fashion industry, such as luxury rentals, luxury fashion libraries, luxury resale, etc.

But far from these points, the role of its advertising campaigns and even the use of celebrities who work reflecting the style of the brands they advertise have been essential for the rise of a brand.

Celebrities and millennials

When we talk about aggressive advertising in fashion, it is these campaigns that we do not stop seeing or remember no matter how many years go by: whether it is Paris Hilton in Guess, Justin Bieber for Calvin Klein or David Beckham announcing his underwear line in H&M, celebrities play an important role in millennials.

Money.co.uk looked at this point and there are figures like in music that help us determine our purchases and style choices.

This comparison and data analysis site found that one of the favorite celebrities in the world for millennials to inspire their style is Billie Eilish, since in 19 countries, among which are: India, Indonesia, the Philippines, Australia, the Czech Republic, Hungary, Greece, Portugal, Canada, Brazil is a fashion icon.

Photos: @gucci | @lanadelrey | @ladygaga | @Ariana Grande

Second place goes to Harry Styles, he is the fashion inspiration celeb for 18 countries and Mexico is one of them. According to searches in our country, the British singer influences the fashion style of users. Also for Egypt, Morocco, Qatar, Saudi Arabia, Denmark, Ireland, Iceland, the United States, Panama, New Zealand, Argentina, Chile, among others.

Lady Gaga is the third celebrity to inspire with her style and fashion outfits. She has a presence in 14 nations such as: Malaysia, Croatia, Costa Rica, El Salvador, Dominican Republic, Fiji, Bolivia and more. In fourth and fifth place are Ariana Grande and Kylie Jenner, both in 9 countries respectively.

The democratization of fashion with online shows, the opening of new consumer markets and the presence of brands on social networks have meant that year after year they generate new followers who have become a new target market to be able to show their products. products.