Louis Vuitton Game and Hermes singing room? Luxurious high-end brands are becoming humble! Until now, It was golden ages for luxury brands such as Louis Vuitton, Hermes, Gucci, Chanel, and so on! It was a luxurious dream to Just take a stroll at the Champs-Elysées Avenue and walking through those gorgeous brand showcases.
Wow, It is really awesome just by thinking about it.
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But that golden age is gone.
In these days as the time flows, the generations who have the purchasing power is changing.
Millennials and Z-generations who are teenagers and twenties advent as the strength who steer the global consumption.
Following the change of the customers, the business has to evolve and advance toward them.
Millennials and Z-generations are now impacting every inch of the entire market system.
But here today, I want to focus on the luxurious brands’ evolution.
The luxurious and high-end brands are well known as their haughty and arrogant attitude.
Actually, because of that, they had kept their originality.
But, following the customers, that snobbish brands are becoming humble.
Let’s take a look about it! Compared to the elders, Millennials, and Z-generations do not like that much to wear high-end brands such as Louis Vuitton, Hermes, Gucci, and Channel.
They think that wearing these classical high-end brands are out of style.
Also, they think that exposing their own personality is much more important than showing off and receiving attention from others.
So, it is a matter of course that the classical high-end brand who are selling their products offline by lining up the steady seller on the shelves are having a hard time.
Thus recently, those brands do marketing, which they have never thought about in the old days.
“LOUIS VUITTON” MAKES A COMPUTER GAME!” When they revealed their 2019 f/w collection, they showed a computer game.
They used to make an art film at the show, but interestingly they made a game.
Because the young generations do not intentionally take a look at the art films, they release a computer game for promoting this year's collection concept, the “Retro.
” It is not even an artistic game.
The game is just running and collecting the glittering Louis Vuitton logos in the 1980s NYC's night street.
I tried it, but its surprisingly retro style.
The luxury brand, Louis Vuitton, made a popular game which young generations can easily enjoy with for attracting the youngsters.
“HERMES” SINGING ROOM! Hermès is opening-up the Pop-up store, “Carre” which means square in French.
They displayed their famous silk scarfs and public designer room.
We can comfortably try these scarfs on and enjoy those patterns, and further, we can see the expert designers doing the works.
We can enjoy free-snacks and signing in the Carre-OK, which pronounced similar to the Karaoke, the singing room in Japanese, regardless of whether you bought a scarf or not.
This kind of experience is the thing thatwe cannot even imagine in the old days.
CHANEL'S NETFLIX MOVIE! Chanel made a Netflix documentary to introduce the brand to young people.
The ‘Seven days out’, which released recently, filmed the whole process that the late chief designer Karl Lagerfeld mapped out the show, designed the stage, and finish his works.
Rest in peace.
Chanel visits the platform where the young people gathering around and tries to persuade why Chanel is worthy enough to pay that expensive money.
GUCCI'S SUCCESS! Gucci already gave up its grave authority and succeeded in their dramatic revival.
They are chosen as the favorite luxury brand by the Millennials and around 65% of the 2018 sales are from under 35 years old.
Then let’s take a look at how the “GUCCI” made this amazing Renaissance.
At first, WHOLE NEW MENTORSHIP First, After Marco Bizzarri inaugurated as a CEO in 2015, he changed the direction of Mentoring.
He let the inferiors teach the superiors, and the new employees teach the executives.
Second, he made up the “Shadow Committee, ” where the CEO and the employees under 30 years old can attend.
In that committee, they discuss the agenda exactly the same as the directors’ meeting, starting from design to the management.
The third, at the regular Lunch meeting where the CEO and the employees under 35 years old attends, they brought 3 creative ideas for improving the brand and discuss.
The ideas coming up at the Shadow committee and lunch meeting are now changing the company’s policies.
The second, NO ANIMAL FUR! At the Shadow committee, they propose that the millennials, who put stress on social value, hate using animal furs.
The company accepted this proposal and decided to ban the animal furs staring from the 2018 spring season.
And by following their ideas, they reversed into the unisex design and made the millennials to their huge fans.
The third, 24HR CALL CENTER! Compared to the typical luxury brands selling their products only off-lines, Millennials and Z-generations shopping only on online.
For filling up this gap, Gucci introduces24-hour online call center.
Around 500 people are working at the callcenter, who are professional sellers.
The customers can experience exactly the same shopping experience as offline.
We can ask anything such as recommendation, refund through the phone call, or e-mail messengers.
Like this way, Millennials and Generation Z are changing the over-proud and egotistical luxury brand.
Olga Pancenko, COO, and VP for Perrin Paris said in the interview with the Forbes, “Luxury brands should start with the change in their own mindset when looking to engage these very particular audiences.
Historically, luxury brands were promoting a so-called culture of “Exclusion.
” Not only that they were limiting access to the product, but they were also deliberately detached from the final customer and reserved in their communications.
What we are observing today is a new paradigm: To successfully engage Millennials and Generation Z customers, brands have to act in an inclusive, engaging, and open manner.
This requires a great deal of flexibility in communications, tone of voice, social media behavior.
It all starts from within.
Instead of asking themselves how to sell to these customers, brands should try and become “friends” with those new generations of customers, and participate in their own lives through relevant channels and speak their language.
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