The luxury market is supposed to grow every year by 3 to 7% worldwide. This means that it is an industry with a strong appealing to people. There is an ongoing increase of interest for luxury news around the world and the young generations are ultra-connected, super-informed and craving for luxury brands.
The luxury market is getting younger
While emerging markets like Brazil, India or China have ups and downs, mature markets like the UK or the US are pretty stable or even slightly growing. This generates a strong interest on Luxury news as the luxury customers are more and more keen to discover more about brands, products and services. The younger they are the more informed they want to be. Among the younger customers, there are the Millenniums. They are below 25 years old and some of them have money. Millenniums have more than $US 200 billion to spend and they contribute to $US 500 billion indirectly through influencing their parents (source: US Chamber of Commerce). By 2017, this generation is supposed to outspend the BabyBoomers. They are “hyperly” connected and engage with luxury brands in ways we would not imagine. They are also very demanding and traditional luxury is not enough. They seek very exclusive experiences and products, more than previous generations. We talk now more about hyper-luxury. Technology definitely opened the possibilities to engage with this young generation across the world but it is not only that.
The luxury news landscape, a moving media horizon
The young generation is seeking authenticity and justice which becomes a challenge for brands. Also, they communicate differently and choose media in ways that previous generations would not. The development of internet has definitely allowed more ways to bring the experience of luxury to a wider audience. In the media side, luxury news media has also increased as the audience represent a very interesting target.
First there is an incremental need for qualitative luxury news. Second, brands are also looking for qualitative and relevant media to advertise their campaigns. Both sides of the equation generate a tremendous activity across all media.
Digital became the new playground for luxury brands
Historically speaking luxury communication and media were Print. The first magazines started their businesses a very longtime ago.
- Harpers Bazaar – 1867
- Vogue – 1892
- Elle – 1945
With the development of technology and social media, brands have found a new playground to work in. The new generations are very digital savvy. They communicate and get informed mainly via digital on a regular daily base. For several years internet was an untapped territory for brands and for media to communicate with people. Now things changed. From brands, to established media and bloggers, you can find all your luxury news and information you wish online. When you type “luxury news” on Google, these are the top 5 results you get:
What is interesting with the above list is that we have a perfect representation of what you can find today in terms of luxury information. Luxury Insider and Luxuo started as blogs and became now tremendous references worldwide.
LuxuryDaily is a new generation of media dedicated to online. The last two results are established media, the Telegraph for Print and CNN for TV. These different type of media compete at the same level of visibility despite the fact they do not have the same financial means. That’s the beauty of the web: relevancy before money.
Millennials spend a total of 18 hours everyday consuming media: Digital, Tv, Print and Radio. When you know that there are 24 hours in a day, it does not let room for work and sleep. Actually the daily 18 hours are cumulative. Basically when they declare spending 2 hours on facebook, one hour texting and 3 hours watching TV they might be doing all these at the same time. So rather than spending 6 hours, it is only 3.
So as we can see, the media landscape and the luxury industry found new ways to communicate with their customers. Emerging markets and new generations engage with brands and news in very different ways now. Digital became a very interesting platform for brands as you can not only track your customer but also measure all your results. So a lot of brands are investing in digital marketing. Now the challenge will be to find the right balance between this uber-communication, the respect of people and the editorial independence of publishers.
Info sourced at Forbes, Telegraph, LuxuryDaily, Business Insider and wikipedia. All content is copyrighted with no reproduction rights available. Images are for illustration purposes only.