Understanding the next generation of luxury consumers

By Woven Agency, Wednesday March 1, 2023

Discover how to attract, engage and convert the next generation of luxury consumers with insights from our roundtable event.

There’s an entirely new generation of luxury consumers emerging. A generation that thinks, feels, acts and spends differently to any that has come before. So how do luxury brands engage this new wave of potential customers?

We recently spent time with a panel of gen z and millennial luxury consumers to understand the marketplace through their eyes. This was followed by a roundtable discussion on the insights from the morning, exploring how you can attract (and keep hold of) this new generation of luxury consumers and the macro trends affecting their spending habits.

Four key takeaways to attract luxury consumers

1. Be vocal and transparent about your brand values 

We no longer live in a world where brands can shut their eyes to the issues going on around them and continue with business as usual in the face of adversity.

Luxury consumers now expect brands to take a stand on the issues that impact their everyday lives, from climate change and sustainability, to world politics and gender identity. It’s not enough for brands to pay lip service to this, as consumers can see through false promises and will call the brand out. Instead, brands need to take action on their promises, or consumers will quickly switch to an alternative – taking their friends and family with them.

2. Use micro-influencers and encourage peer-to-peer conversations

In an era of growing brand distrust, consumers are often now reliant on recommendations from their friends, family and peers when it comes to purchasing a new product. When the item is high value and requires a greater investment, these word-of-mouth recommendations become even more valuable.

Younger luxury consumers are also turning away from high-profile macro influencers, preferring to follow people online who seem more genuine, transparent and reflective of their own values. As they don’t like to spend too much time seeking out information about brands, consumers are more likely to warm to a brand that lands in their lap naturally on their social media feed.

3. Traditional brand marketing doesn’t translate on social 

Brands can’t simply replicate their content across all social challenges, as each serves a unique purpose and consumers behave differently across them and therefore have different expectations of how brands should show up on them.

Our panellists claimed to not care much about brands on social media, instead following people who have something to say on topics they’re interested in. If brands can join these conversations authentically, rather than pushing their brand message, they’re more likely to establish themselves as a core part of these consumers’ lives.

4. Create immersive, interactive and exciting brand experiences online

After two years of disruption, consumers are desperate to immerse themselves in in-person experiences. They want to be part of something, making up for the isolation we all experienced in the pandemic. There is a huge opportunity here for brands to create personalised, memorable and highly interactive experiences that allow consumers to physically experience their products.

There is an opportunity to replicate these experiences online, but they need to offer something amazing in order to stand up to IRL experiences. Virtual brand experiences can be enhanced through the use of VR, AR and the metaverse.

Want your brand to attract the next generation of luxury consumers? Just tap below.

Your panelists

Mark Bower, executive creative director, Woven Agency

Mark has spent over 20 years in marketing. His focus is on strategic direction and brand engagement. He’s fascinated with understanding what drives human behaviour and using technology to deliver unique and compelling brand experiences.

Helen Darlington, founder and director, Woven Agency

Helen is Woven’s founder and CEO. Announced as 2013’s, 2015’s and 2016’s Top Female Digital Entrepreneur, she has over 20 years’ experience in digital and loves its ever-changing landscape. Helen’s ability to take clients’ business challenges and provide creative solutions on and offline has seen her take Woven from strength to strength over its 20-year lifespan.

Si Muddell, chief growth officer, Woven Agency

Si has 15 years of experience leading digital transformation, brand, marketing, engagement, acquisition and product innovation across the globe. He’s helped create award-winning subscription products, has leading digital strategies for Heineken and Nestle, launched a Pay TV platform across Asia-Pacific and helped Woven combine efficiency with elegance when dealing with clients — and in the work the agency produces.

Miles Williams, senior planner, Woven Agency

Miles finds out how and why brands resonate with customers. Through research and client workshops, Miles seeks to understand what brands stand for, what their audiences will appreciate, and how creative teams can help the brand stand apart from its competitors.

Maya Prentis, 26, London, content creator

Maya is the London-based creator behind fashion, beauty and lifestyle blog whatmayawears.com. She’s been featured on the social media accounts of numerous well-known retailers, received invites to London Fashion Week and has worked with brands such as Dior and Me by Melia.

Helen Rabbitt, 26, London, events coordinator 

Helen works in the live music industry booking shows for artists across the UK and Europe. She has a huge interest in fashion and how it’s constantly changing. She loves to experiment with her own style, incorporating bold colours and prints in her everyday outfits.

Deyvid Dimitrov, 26, London, content creator

Deyvid is a fashion and lifestyle content creator, and is editor-in-chief of Goldfoil Magazine. Born in the heart of the digital age, Goldfoil uses its influence to amplify and celebrate creators’ work.

Ross Barker, 37, London, entrepreneur

Ross has spent the past 14 years reinventing how businesses do B2B marketing. As the founder and director of multiple advertising and technology companies, he finds fresh approaches to B2B marketing and lead generation strategies, high-performing content and event programmes.

India Castro, 21, Brighton, post-graduate

India has just completed a degree in media at Brighton University. Despite how time-consuming and expensive university can be, she managed to maintain her passion for fashion — spending her weekends scouring charity shops for pre-loved pieces to compliment her vintage archive.