By 2025, it is said that Millennial and Generation Z will account for up to 45% of the global luxury goods market. To say the least, Millennial have been born with a entrepreneurial mindset compared than the generations above. Indications can be drawn down the first generation to be introduced to adult life in a less favorable conditions.
In the 1950s, luxury was seen as a lifestyle choice that accounted for reaching a well leveled institute, buying a house, buying a car and breeding spouses; this was the simple formulation of success. As modern technology has been shaping the ingredients to the ‘perfect’ life and overall consumer experience; luxury has more of an attachment than just short term monetary happiness. To some, it is bought on a rare occasion to symbolise a precious moment. It is a soft gesture of appreciation and to celebrate the moment in time. Luxury has a personal momentum attached to it, just like a song or a smell. When reflecting back, you instantly phase these feelings that remind you of that moment. Whilst this is the positive of the luxury industry, many seek it as a financial showcase.
The modern era has allowed us to think luxury items is to relate yourself as a healthy incomer- taking all fashion trends away from it, somewhat a matter of self-indulgence. Whilst others believe items should be stood based on the test of time. For example, purchasing the same item more than once due to the life expectancy can be easily equivocate to buying the better quality just the once at a fewer time. It’s a rare and bought on only occasions which are why it is a luxury. It is only worn on special occasions for special meanings which lead to special memories made wearing it. Just how a song and smell helps you relate to a moment in your life; luxury items also have that same effect. Being in a generation where social media is our forefront catalogue to buy the next DKNY watch or the Bvlgari clutch; we are clearly infatuated by the how attractive one looks with the luxury items and instantly judge them in comparison of their financial status.
Fashion houses are now finding it competitive to please the Millennial. As mentioned previously, Millennial are more cautious about their spending more so now due to the rough financial situations in Europe. Whilst the generation is at its peak overall in term of rich equality, designers are now upping their league by offering exclusive services to keep their paws in the market. For example, Ted Baker is now bidding to offer in-store stylist in provide their elegant products the right service to compliment it.
Right, so what does the industry say about luxury? Historically, luxury was always seen as a term only used for the standard of quality and the shield of exclusivity. High streets brands are now loosely using the big L word to gain that market against their competitors. By labeling it ‘luxury’; automatically consumers feel the urge to promote the purchase as the leg work behind the garment must be a lot more special than most. An easy access to gain the ‘luxury’ label is to collaborate with major designers. Brands such as H&M and their recent collaboration with Erdem have allowed them to build a portfolio of solid brands that push the luxury label out there but at a affordable price. At this point, do we point our fingers and blame the middle men in the market? By merging brands together to seek to gain a competitive field, where does this leave those who want exclusivity for the reasons of it being quantity over quality?
It is clear to say, the top dogs of the industry do not have to face a more statutory way to bring out more stylish trendy pieces which must to be considered as luxury to leverage out their means of business. However, where does that leave us? Individuals CHOOSE certain pieces as they believe this replicates them and their personality. It is ones right to showcase who they are through what they wear and luxury can be seen as the one stop to grow their appearance.
Why and how has Ted Baker kept their word in the industry so strong? Firstly, Ted Baker’s revenue has seen a scorching turn into online sales recently after the strong foundation growth on online and internal business. Ted Baker has significantly pushed their way fashion forward into offering a different marketing technique that allows their customers to feel exclusive and this is lead from ‘Colour By Numbers’ fashion range; offering a more practical and casual selection on a high quality mark. Secondly; whilst Ted Baker has been established since 1988, they have moved with the times. They have always been true to their brand and distinct to their DNA. Finally the competitive innovation behind their retail strategy has allowed customers to enjoy spending rather than seeing has a burden to use their savings What is important to digest is the movement of the luxury market. With the support of intense online marketing, Ted Baker has made a spoof of ‘Keeping up with the Kardashians’ as their campaign approach. Cleverly, this connects with the Millennial on a trendier yet classy way.