BBC Reaching Affluent Millennials – Luxury Brands

31 Pages·2017·1.72 MB·English

by  Scott Schwertly

THE AM PANEL
2018 Affluent Millennials
Luxury Brands Study
In 2016…
BBC Global News produced an award-winning study
into Millennials and their relationship with brands.
By exploring Affluent Millennials in particular, we
learned three things:
Affluent Millennials actually embodied more of the traits we often
associate with Millennials as a whole, in particular…
They are very status conscious, and use brands as a reflection of their status
to others. And they treat what brands stand for as a reflection of their own
personal values.
They demand a lot from brands – including the usage of sustainable practices
and fair working conditions. However the reward is an extremely high degree
of brand loyalty.
In 2018 we want
to take this
further…
In 2017/2018, we are exploring how Affluent
Millennials engage with brands from specific
categories such as:
Leisure Luxury Consumer Banking and
Travel Goods Technology Finance
For each of these, we want to know:

How do Affluent Millennials consume in the category?
•
What do they look for from brands and service providers?
•
What advertising strategies are Affluent Millennials most receptive to?
•
What ways can brands effectively engage with Affluent Millennials?
•
Affluent
millennials and
luxury brands
Millennials and Luxury Brands
For many generations, Luxury Brands have been synonymous with success and achievement.
50 years
45 years old
35 years old
30 years old
25 years old
old
Purchasing and owning luxury brands has served as a marker of success and achievement throughout
ones life.
Millennials and Luxury Brands
However, Millennials are “the first generation to approach adult life in less favourable economic conditions
than their parents”1, and this has changed their perception of the role of luxury brands:
With economic instability, the prospect of success and achievement coming from hard, sustained work is less
certain.
Changes in financing and credit means that luxury products can be obtained anytime, and therefore erode their
position as achievement markers.
Global awareness has changed Millennial’s value system and what they expect from brands and corporations.
Social media has moved status signaling online, where ownership of brands has become a reflection of what you
stand for.
SOURCE: 1. D’Arpizio in ‘How Millennials Will Reshape the Luxury Market’, Forbes, Jun 2017
Millennials and Luxury Brands
Millennials came of age in a time of disruption, where a lot of the rules about career, success and status
had gone out the window. It might seem that luxury brands have to rethink how they engage with this
generation.
But how much of this is true for Affluent Millennials?

This group make up around 17%1 of all Millennials, but have tremendous buying power.

Do they embody what we think we know about all Millennials, or are they something else entirely? And what does this mean
for Luxury Brands?

This study aimed to find out…
SOURCE: 1. GlobalWebIndex Q1-Q3 2017 (n=134K) Analysis of 16-34’s across 40 countries. Affluent defined as top 25% for HH income in market
Affluent Millennials
luxury brands study
The following study was conducted in October 2017.

The study explored the topic of luxury brands amongst
Millennials.

2,692 respondents aged 16-34 from 8 countries around the
world participated in an online survey: Australia, France, USA,
Germany, Canada, Singapore, South Africa and Hong Kong

Millennials were defined as those aged 16-34. ‘Affluent’ was
defined as being in the top 25% by household income for your
market.

The fieldwork was carried out by GlobalWebIndex (GWI).
Key take-outs