The exuberance of the roaring twenties of Luxury
Updated: Mar 29, 2021
We had just put the pen down from writing about meaningful luxury and how people wanted to buy more consciously, about how brands needed to be true to their values, up to a certain rigor and dogma, let's admit it, about how the origin, the craft, the storytelling - the love & care ! - was everything
... and BAM, Erwan Rambourg shook the world of luxury 3 weeks ago and wrote about a new era of exuberance in an article called "The Luxury Rebound — Brace, Brace, a New Era of Exuberance Has Started".
Not long before that founding article, SharesMagazine had also released an article provocatively called "Welcome to the Roaring Twenties where wealthier people will splash the cash".
What? People struggling everywhere, lockdowns still being a thing in a lot of countries, retail being closed in most Europe, and some individuals ready to splash their cash and show off their logos already?
Absolutely. And for those who would ask "so, where's the truth?" - well, in both my dear,
To understand that, we have to keep in mind a few things (among many other factors of course):
- The consumers that INFLUENCE luxury today are the Gen Z (think Dior x Jordan sneakers); they are the "dominant cultural tribe" - remember 10 years ago the hipsters?- inspired by street culture (sneakers, skateboard, etc).
Credit : Gucci / Gucci.com
- They are currently rediscovering the 90's aesthetics - remember those big, fat logos on everything? Those monograms on every bag? All those things we have hated for the last 20 years - and that, let's admit it, we are proud of again today ?
- Those same young people, born in the 2000's, have never known a non-digital world. Better, they spend ALL their time on their phone. They use it to trace products' origins, ensure quality, read reviews, get inspiration from their favorite micro-influencers, create content, sing, dance, read, talk, eat, drink, socialise. Well, for everything.
- They are also considered as "born activists". Were raised to sort waste and recycle everyday. Climate change is a reality they have to live with because of previous generations' inaction. They demand change and immediate results as they grew up in a world where everything is available almost instantly (movies, series, music...). They want to use their power to make the world a better place.
- They are 2x more likely [compared to Gen X and boomers ] to buy luxury goods as treats (source : IMPERO)
- By 2026, Millenials and Gen Z will represent more than 60% of the luxury market... (source: IMPERO) of which most of them will be in China. Where the pandemic is already a memory of the past.
- Unlike Millenials who like small brands, small producers, GenZ buys known brands, with recognisable and powerful brand assets (among them, those logos & monograms) that go along with their lifestyle and streetstyle inspiration. Think Supreme, Off White.
- Why? Because they create content themselves all the time. In fact, they use social media to build their own personal brand. And to do that, they need clear signals & symbols, assets that are highly visible and instantly recognisable.
- Last but not least, the pandemic has led to a splurge. For various reasons : economic for one (all the savings we made last year by not being able to spend on anything) but also psychological (let's indulge and celebrations little things).
A very demanding generation of consumers who want nothing but the best, again, but in their own way.
The bling is BACK BUT with a conscious mind. So as Erwan Rambourg rightfully said, "Brace, brace."
Credit : Gucci x Selfridges
Sources & Additional reading