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Next Generation Luxury: It’s Not About Exclusivity Anymore

Writer's picture: Yixuan LiuYixuan Liu

For decades, luxury has been synonymous with exclusivity, but the next generation is reshaping this concept. Gen-Z, with their unique values and digital fluency, is redefining what luxury means. It’s no longer about inaccessibility but about authenticity, inclusivity, and experiences.



Gen-Z's Impact on Luxury

Gen-Z, those born between 1997 and 2012, are becoming a dominant force in the luxury market. This generation values transparency, sustainability, and personalization. They are digital natives who prioritize unique experiences over material possessions.



Balancing Premium and Accessible

One of the critical challenges for luxury brands is balancing premium status with accessibility. Lacoste’s "Unexpected Encounters" campaign exemplifies this balance by showcasing French elegance and unity in a way that feels both high-end and approachable. By leveraging data in new ways, brands can tailor their offerings to be exclusive yet accessible, creating a broader appeal without diluting their premium image.



Storytelling and Emotional Connection

Storytelling remains a crucial element in luxury marketing. The “Kaguya by Gucci” campaign masterfully combines AI, classical music, and traditional Japanese themes to create an emotional connection with the audience. This fusion of technology and tradition revamps old objects in a new context, targeting subcultures authentically. By doing so, Gucci creates a bond with its audience, ensuring the brand remains relevant and engaging.



Staying Grounded and Amusing the Audience

Diesel’s playful approach, seen in their Mustafa Kebab culture campaign, highlights the importance of staying grounded and making light-hearted jokes about the sector. This strategy not only amuses the audience but also keeps the brand approachable and relatable. Similarly, Diesel's collaboration with Coca-Cola in the "Re-Collection" campaign, which involved a recycling bin pop-up shop, showcased sustainability in a trendy and exclusive manner, attracting a wide audience. I personally really like this idea!



Sustainability: The New Luxury Standard

Sustainability is another critical factor for Gen-Z. A survey by First Insight revealed that 73% of Gen-Z consumers are willing to pay more for sustainable products. Luxury brands are responding by adopting eco-friendly practices and transparent supply chains. Guerlain’s "Reaverse NFT" initiative is a prime example of balancing premium and planet-friendly approaches, integrating sustainability with cutting-edge technology to appeal to the eco-conscious consumer.



After this presentation, I’m reminded of an omnichannel campaign plan including gaming and offline exhibition I developed for Chanel during my marketing course.


My idea focused on targeting both Gen-Z and their parents, aiming to use Gen-Z as the entry point to drive every Gen-Z family to make the purchase at Chanel, and as a result increase market share. This approach directly links to the insights. Understanding Gen-Z's consuming power and their preference for authenticity and experiential luxury is crucial. By aligning marketing strategies with these values, brands can appeal to both Gen-Z and their parents, creating a unified and compelling narrative that resonates across generations.

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