To understand why the landscape of the luxury market has changed, we must consider consumers and their particularities and behaviors. Of course, as everyone can imagine, the luxury brands are mainly wealthy consumers who have large incomes and a taste for quality and exclusivity. Yet new segments have emerged recently and the Deloitte study draws attention to a new category – HENRYs . The HENRY (High-Earners-Not-Rich-Yet) is a new segment of consumers characterized by high discretionary incomes, from US $ 100,000 to US $ 250,000.
According to Deloitte’s Global Powers of Luxury Goods 2019 , HENRYs fall into 3 categories, Gen Y, Gen Z and Baby Boomers but have Nigeria WhatsApp Number List an average age of 43, have digital skills and enjoy shopping in line. They don’t save and spend between $ 60,000 and $ 86,000 per household per year. For luxury brands, HENRYs are extremely important because they are the class of consumers who are most likely to get rich in the next few years . Therefore, developing activities focused on them is an excellent strategy because it gives brands the possibility of retaining them and building a solid relationship today.
To conquer HENRYs, millennials and millennials, luxury houses have started to embrace the values of this demographics (authenticity, reliability, commitment and sustainable practices), as well as the tools and networks they use, by especially social media platforms. Due to these upheavals in the luxury market caused by the huge demand, new approaches are continually emerging. Traditional brands have also had to start adopting new strategies and innovative tools to align with young and digital demographics. 1. An increased interest in sustainability. For decades, the luxury brands have been associated with excessive consumption, high prices, elitism and frivolity .
But as millennials and millennials take over and are responsible for 85% of global luxury growth , the situation is changing and sustainability becomes a central issue . New consumers expect their favorite brands to get involved in practices that have a positive impact on the environment by demonstrating good citizenship transparency and authenticity. For example, the luxury brand Stella McCartney is a pioneer of sustainability . The company is engaged in projects with NGOs and has been implementing green practices for over a decade.
The brand also recycles all reusable textiles and supplies its stores and offices with renewable energy. 2. Social media and the growth of influencer marketing. These days, marketing does not highlight the products themselves but the brand’s narratives . Young emerging demographics buy brands rather than products and they tend to favor those that share their interests and participate in social networks . In this context, the need for dynamism, surprise and strong messages has increased.
Storytelling is deployed through technology, apps and add-ons used across different channels to create cohesive strategies that can capture and gain buy-in. Consumers expect brands to be present on their social networks and to contribute to the conversation by adding value to them. This is done thanks to digital influencers that play a decisive role in the intensification of the communication, confidence building and generation of felt . All of these are essential for luxury businesses around the world. Some brands have even built a long-term relationship with their influencers.