Their preferences are being shaped earlier and earlier and their attention is more competitive than ever. As a result, new entrants have disrupted the market. For over 100 years, the watch industry never had the idea of selling watch straps separately. Apple did it successfully! Focus on storytelling For a brand to be perceived as luxury, it must be able Jordan Phone Number List to influence, inspire and innovate. If it is too anchored in its past heritage, it loses influence, becomes boring, uninteresting for consumers. However, if a brand does not offer extreme value, it is no longer considered luxury, no matter how important its name is. Unlike the new entrants, who are totally “customer-centric”, heritage luxury brands are still struggling to focus on their storytelling.
However, Millennials, like GenZ, now buy brands rather than a product. The big luxury houses must therefore rediscover this ability to connect and create relevance for young consumers. It is not a question of a project to postpone, but to embrace without delay. Building a new storytelling without denying its history is undoubtedly the most complex positioning exercise to achieve, but it is essential. The stories that brands tell should be more about authenticity. The experience should be value driven, which will create new opportunities for dialogue with consumers, making a meaningful contribution to their lifestyle, while fostering positive change in the world.
Consumers Have Spent Money Online In The Past Three Months,
This reorientation of the discourse from the product to the brand represents a phenomenal source of opportunities. The leaders of the luxury market of tomorrow will not necessarily be the biggest Houses of today. They will be the ones who will be able to understand what consumers want at a given moment. It sounds simple, but it is far from the case. This new reality is forcing brands to look far beyond their product. More changes will come and customer expectations will continue to rise. The future calls for luxury brands to evolve and adapt according to the societal landscape. They will have to review the basic assumptions and the traditional rules of the luxury game, learn new vocabularies and innovate.
Since the 19th century, sneakers have been more than just shoes. They represent a cultural claim, a means of communicating one’s identity, class, origin, principles and status. This movement is so popular that a term has been created to designate the enthusiasts who collect and trade sneakers: sneakerheads. According to Statista, the global sneakers market was valued at $ 79 billion in 2020 , and is expected to reach $ 119.5 billion in 2026. In the same year, industry leader Nike reported a worldwide revenue of $ 37.4 billion, more than Adidas and Puma combined. History of sneaker culture The very first popular sneaker models were released by Goodyear in 1892.
Millennials Said They Prefer Online Shopping Over The In-store Alternative.
In 1917, Converse released their world famous All-Star sneaker collection, which is preferred by many NBA basketball players. Another significant milestone in the history of sneaker culture is the launch of the Nike Air Jordan, created for Hall of Fame basketball player and NBA MVP Michael Jordan. This iconic model was made available to the public from April 1985. In July 2003, Nike bought Converse, which helped diversify its portfolio. Converse was not in a good financial position. The company had filed for bankruptcy and its annual turnover was only $ 200 million. In an attempt to take on Nike, Adidas bought Reebok for $ 3.1 billion in 2006.
Expansion: Rarity and cultural references Every now and then, brands try to increase the value of their sneakers through scarcity. For example, the Dior x Air Jordan 1 High “OG Gray” or the Off-White x Nike Air Jordan 1 High Retro OG “Chicago” are the kind of sneakers that everyone wants, but very few own. Another example, as reported by the Wall-Street Journal, when Nike launched its Dunk Low Pro SB “Pigeon” in 2005, only 150 pieces were available. The shortage caused such a riot outside Mr. Staple’s New York City gallery that New York Police were called in to deal with the situation and the building was closed. The second element contributing to the desirability of consumers for sneakers is that of cultural references.