Marketing to millennial consumers
Combination of real and online platforms of promotions are preferred by millennial consumers. For example, in-store selling of super-premium beauty products in beauty salons is welcomed by millennial customers. Millennial consumers have transformed luxury product brands into an art form. For example, luxury pop-stores in urban high streets and department stores are the trends to which young generation responds to as shown in Figure 9 (Walker, 2011). As they are exposed to internet, mobile and social media platforms, marketers have to formulate effective online and mobile marketing strategies.
Unity Marketing (2014) stated that De Beers tagline “Diamonds are forever” worked well for baby boomers who purchased diamonds for a milestone in their life like engagement or marriage. But this tagline did not work well for millennials because the millennials find more pleasure in buying a technology rather than a piece of diamond. Marketers have to develop ‘inspirational’ messages in advertisement rather than ‘aspirational’ messages to attract baby boomers.
Figure 6: Pop-up jewelry store
Luxury products are seen as a symbol of value, social status and exclusivity by the older generations like Baby Boomers. But the millennial consumers have redefined the meaning of luxury products. The generation which grew up with technology, has equated luxury with personalised, tech-savvy and classy products. So marketing strategies must include online and mobile marketing strategies and build meaningful brands to attract the digitally- empowered generation.
Blackwell, R.D., Miniard, P.W. and Engel, J.F., 2001. Consumer behavior 9th. South-Western Thomas Learning. Mason, OH.
Dazinger, P., 2015. Luxury Brands & Demographic Disruption: What’s Your Strategy? [Online] Available at https://unitymarketingonline.com/luxury-brands-demographic-disruption-whats-your-strategy/ [Accessed 21 March 2017]
de Carvalho, R.M.R.V., 2014. The impact of luxury values and luxury marketing factors on generation y's behavioural intentions (Doctoral dissertation, ISCTE-IUL).
Eastman, J.K. and Liu, J., 2012. The impact of generational cohorts on status consumption: an exploratory look at generational cohort and demographics on status consumption. Journal of Consumer Marketing, 29(2), pp.93-102.
Foulkes, A., 2016. A comparison of luxury perception of Generation X and Y consumers in the United Kingdom. Thesis for: BSc (Hons) Business Management, Kingston University, United Kingdom.
Gem and Jewelry Information Center. 2016. Gems and Jewelry Buying Behavior in Various Generations. [Online] Available at https://www.veniceofeastgems.com/single-post/2016/12/01/Gems-and-Jewelry-Buying-Behavior-in-Various-Generations [Accessed 23 March 2017]
Ginsberg. 2017. Overcoming Generational Differences between Employees. [Online] Available at http://www.ginsbergs.com/owner-center/overcoming-generational-differences-employees/ [Accessed 23 March 2017]
Hawkins, D.I. and Mothersbaugh, D.L. and Best, R.J., 2013. Consumer behavior: Building marketing strategy. McGraw-Hill Irwin.
Li, X., Li, X.R. and Hudson, S., 2013. The application of generational theory to tourism consumer behavior: An American perspective. Tourism Management, 37, pp.147-164.
Linde, O., Martynov, A., Epstein, A. and Fischler, S., 2016. The Global Diamond Industry 2016: The Enduring Allure of Timeless Gems. [Online] Available at http://www.bain.com/publications/articles/global-diamond-industry-report-2016.aspx [Accessed 23 March 2017]
Loureiro, S.M.C. and de Araújo, C.M.B., 2014. Luxury values and experience as drivers for consumers to recommend and pay more. Journal of Retailing and Consumer Services, 21(3), pp.394-400.
Positive Jewelry. 2016. Predictions for the luxury industry. [Online] Available at https://www.altagamma.it/media/source/2016-Predictions-for-the-Luxury-Industry-Sustainability-Innovation_ridotto_1.pdf [Accessed 24 March 2017]
Rowe, L., 2015. Gen Henry: How millennials are redefining luxury. [Online] Available at http://www.pbjs.com/blog/how-millennials-are-redefining-luxury/ [Accessed 23 March 2017]
Sethna, Z. and Blythe, J., 2016. Consumer Behaviour. SAGE.
Smith, R., Aramalay, C., Durst, S., Loretz, M. and Ostrovsky, I., 2016. HEDONISTIC CONSUMPTION: A HIERARCHICAL FRAMEWORK. ASBBS Proceedings, 23(1), p.499.
Stanley, C., 2014. De Beers Arrives in Selfridges' Wonder Room. [Online] Available at http://www.fsrl.co.uk/blogs/de-beers-arrives-in-selfridges-wonder-room-42581512413 [Accessed 23 March 2017]
Swartz, L., 2016. I nsight: What Do Millennials Want from Luxury Watches & Jewellery? [Online] Available from http://luxurysociety.com/en/articles/2016/03/insight-what-do-millennials-want-from-luxury-watches-jewellery/ [Accessed 23 March 2017]
Walker, R., 2011. Spendthrift generation Y the thrust of luxury opportunity. [Online] Available at http://blog.euromonitor.com/2011/10/spendthrift-generation-y-the-thrust-of-luxury-opportunity.html [Accessed 22 March 2017]
Wilcox, K., Kim, H.M. and Sen, S., 2009. Why do consumers buy counterfeit luxury brands? Journal of marketing research, 46(2), pp.247-259.