Upload
okhatso
View
2.226
Download
1
Embed Size (px)
DESCRIPTION
Gen Z-Luxury Interactive May 2011
Citation preview
1
Generation Z – The Future Luxury Consumer
MBA in INTERNATIONAL LUXURY BRAND MANAGEMENT
CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
2
Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
NAVIGATION DASHBOARD Click & go straight to that chapter
SLIDE LINK Click & go straight to that slide
1 1
2 2
3 3
4 4
RELATED LINK / EXAMPLE
RELATED VIDEO / EXAMPLE
QUICK TIP
1 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
3
Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
CONTENT
2
3 3 3 3 3
4-5 6 7
8-10
11 12
13-16
17
CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
4
Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
WHO? Tweens Teens
WHERE? They represent 21% of Global Population
WHAT & HOW? Digital natives ≈ Connected 24/7 Tech savvy ≈ Socially active Consume content
KEYWORDS to describe behavior:
socialize, search, view, review, like, link, tag, comment, share, post, create, co-create, word-of-mouse, shop on-line, play, discover, mobile.
INTRODUCTION
GENERATION Z
NUMBERS: Age 8-12
Age 13-19 India has 287 million China has 215 million US has 45 million 63% are online daily 73% are on a social network
Spent $170 billion in 2010 in the US alone
3 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
5
Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
CHARACTERISTICS
GEN Z are highly participative and opinionated , they are encouraged to speak out from a young age. They like being involved in what is being said online and consumers from this generation value each others opinion. Take note of the rise in non traditional brand ambassadors and influencers ie. Tavi Gevinson, Kristin Prim and Charlie Lyne.
GET TO KNOW THEM BETTER
4 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
6
Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
CHARACTERISTICS
GET TO KNOW THEM BETTER
These teens are brand driven and not product driven and they are so to such an extent that even counterfeits get introduced to their shopping or lifestyle patterns but not under a cloak of anonymity but rather with a playful irony meant to enhance the emotional exhibitionism and democratic self-empowerment they live in.
WORD ON THE STREET by GEN Z: “Don‟t tell me who I am‟‟ „‟I know what the brand … is all about better than sales-staff does‟‟ „‟I can‟t afford it now but I have no problem sporting a replica‟‟ „‟I‟m having fun with it‟‟ „‟Once I‟ll afford it I‟ll buy the original‟‟ „‟I know what cool is‟‟ “Mirrors are pretty introspective too”
5 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
7
Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
CHARACTERISTICS
CONSUMER CATEGORIES
Status seekers • Most expensive • Want the world to know
Connaisseurs • Money • Education • Discreet
Pleasure Seekers • Sporadic purchaser • For one self or friends
Conformity Seekers • Need for status • No money • Big Logo
FOR FEW
PRIVATE DISCREET RITUAL
PUBLIC VISIBLE RITUAL
ACCESSIBLE TO MANY
Source: SOFRES SECODIP
Luxury brands today are speaking to all four current categories of prestige consumers at the same time…that are the connoisseurs, the status seekers, the conformity seekers, and the pleasure seekers . The %‟s assigned to each category are based on a survey carried by SOFRES SECODIP - the survey was carried on a sample of 40,000 luxury consumers. As u can see a higher percentage of current luxury consumers fall on the left hand side of the grid.
6 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
8
Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
CHARACTERISTICS
AXIS CHANGE
Status seekers • Most expensive • Want the world to know
Conformity Seekers • Need for status • No money • Big Logo
Source: SOFRES SECODIP
HIGH NEED FOR STATUS
LOW NEED FOR STATUS
HAVE
HAVE NOT
Connoisseur • Ethos driven • Money • Education • Discreet
Emotion Seekers • Playful • „‟I know my place in society‟‟
We believe when GEN Zers become luxury consumers there is firstly going to be a change in the parameters that define these categories „for a few‟ and „accessible to many‟ will be replaced by „have‟ and „have not‟s‟ that is in terms of education and money. Then „public‟ and „private ritual‟ will be replaced by „need‟ and „no need‟ for status.
7 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
9
Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
CHARACTERISTICS
GEN Z AS CONSUMERS
Status seekers • Most expensive • Want the world to know
Conformity Seekers • Need for status • No money • Big Logo
Source: SOFRES SECODIP
HIGH NEED FOR STATUS
LOW NEED FOR STATUS
HAVE
HAVE NOT
Connoisseur • Ethos driven • Money • Education • Discreet
Emotion Seekers • Playful • „‟I know my place in society‟‟
Secondly there will be a shift in the percentage weight of these categories…higher percentage of these consumers will be on the right hand side of the grid as compared to the left side.
GEN Z
GEN Z
8
10
Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
CHARACTERISTICS
GEN Z AS CONSUMERS
Status seekers • Most expensive • Want the world to know
Conformity Seekers • Need for status • No money • Big Logo
Source: SOFRES SECODIP
HIGH NEED FOR STATUS
LOW NEED FOR STATUS
HAVE
HAVE NOT
Connoisseur • Ethos driven • Money • Education • Discreet
Emotion Seekers • Playful • „‟I know my place in society‟‟
Gen Z consumers will make up a high percentage of emotion seekers. The reasons for this are one due their individuality they know what their place in society is so don‟t need status. Secondly as they like challenging brands and the norm, mixing real with fake, consuming luxury is playful and fun for them
GEN Z
GEN Z
9
11
Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
CHARACTERISTICS
GEN Z AS CONSUMERS
Status seekers • Most expensive • Want the world to know
Conformity Seekers • Need for status • No money • Big Logo
Source: SOFRES SECODIP
HIGH NEED FOR STATUS
LOW NEED FOR STATUS
HAVE
HAVE NOT
Connoisseur • Ethos driven • Money • Education • Discreet
Emotion Seekers • Playful • „‟I know my place in society‟‟
We will also see an increase in the percentage of connoisseurs as GEN Zers are opinionated and educated, but for them it will be about real value and ethics
GEN Z
GEN Z
10 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
12
Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
SHIFT
Luxury brands have been making the old categories of consumers dream through the top down levers of Brand monologue, the product, store experience & impactful staff that leads to sustainable customer relationships and ultimately entrenches the brands markets position. However due to Generation Z there is a shift from top down control and communication to 360 degree 1-on-1 customer management.
BRAND MONOLOGUE
Top Down Approach
11 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
13
Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
SHIFT
THE STARTING POINT
CONSUMER
The consumers and customers are at the center of the new brand management paradigm. Because of technology and social platforms they are participating in brand dialogues not only with brands but also amongst consumers themselves and between bloggers or other stakeholders.
12 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
14
Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
SHIFT
360º
PREEMPTIVE DISTRIBUTION
CONSUMER
CO-CREATE BRAND MEANING
EMPOWERMENT
Through this they are empowered and are co-creating brand meaning. The next step in brand management is pre-emptive distribution where brand are giving the consumers what they desire, where , when and how often they want it. For e.g. Kolhl‟s in the USA do this by providing convenience to the time starved working mom, through the location of their stores and the merchandising mix that they offer
13 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
15
Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
SHIFT
360º
PREEMPTIVE DISTRIBUTION
VIRTUAL & REAL
EXPERIENCE
CONSUMER
CO-CREATE BRAND MEANING
EMPOWERMENT
Next comes neurological stimulation through virtual and real experiences with which brands make a meaningful connection with the consumer. For e.g. Abercombie and Fitch provide a club like lively atmosphere in their stores where are all the sense are stimulated by the music, dim lighting, smell and store staff dancing. All of this leading to a unique shopping experience.
14 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
16
Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
SHIFT
360º
VIRTUAL & REAL
EXPERIENCE
USER REVIEWS
& „‟OPINION LEADERS‟‟
CONSUMER
EMPOWERMENT
Furthermore u have user reviews and opinion leaders…earlier consumers use to be influenced by the view of fashion writers and editorial in magazines. Now consumers trust the opinions of other consumers like them.
CO-CREATE BRAND MEANING
PREEMPTIVE DISTRIBUTION
15 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
17
Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
SHIFT
360º
PREEMPTIVE DISTRIBUTION
VIRTUAL & REAL
EXPERIENCE
USER REVIEWS
& „‟OPINION LEADERS‟‟
HUMAN TOUCH ONLINE/OFFLINE
CONSUMER
CO-CREATE BRAND MEANING
EMPOWERMENT
Sustained Customer Relationship
Entrenched Market Positioning
€€€
Last but not least the importance of staff is critical in closing an experience circle which encompasses on and off line environments, storytelling and dialogues, legitimacy and cool-factor all of these combined lead to sustainable customer relationships that ultimately entrenches the brands markets position.
16 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
18
Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
TAKEAWAYS
Gen Zers are DIGITAL NATIVES so they do everything online. They like live streaming their life experiences . They don‟t mind sharing pv info as long as they are getting something in return like content. They have DIFFERENT MOTIVATIONS for engaging with brands Finally there is a SHIFT IN BRAND MANAGEMENT from top down control and communication to a 360 degree consumer engagement approach
THE POINT IS
17 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
19
Generation Z – The Future Luxury Consumer
REFERENCES
LINKS
REFERENCES 1.The New Rules of Retail by Robin Lewis and Michael Dart, 2010 2.Make Way for Generation Z: Marketing to Today‟s Tweens and Teens, Euromonitor International: Strategy Briefing, February 2011 3.The F-Factor, www.trendwatching.com, May 2011 4.“Building Great Brands in the Digital Age: Guidelines for Developing Winning Strategies”, Nielsen, September 2009 5.Social Media and Mobile Internet Use Among Teens and Young Adults, Pew Internet and American Life Project, by Amanda Lenhart, Kristen Purcell, Aaron Smith, and Kathryn Zickuhr, Feb 3, 2010 6.How Teens Use Media, a Nielsen report on the myths and realities of teen media trends, June 2009 7.Introducing Generation C: The Connected Collective Consumer, Nielsenwire, October 27, 2010 8.Consumer Decision Journey, McKinsey Quarterly, by David Court, Dave Elzinga, Susan Mulder, and Ole Jørgen Vetvik, July 2009 9.Spotlight on Social Media and the New Rules of Branding, Harvard Business Review, December 2010 10.The Rise of Generation C, Strategy and Business, by Roman Friedrich Michael, and Alex Koster, February 22, 2011, Spring 2011, Issue 62 11.Cultural Anthropology Advances in Brand Management, ESSEC MBA International Luxury Brand Management lecture, Simon Nyeck, April 26, 2011 12.Consumers of Luxury: What Exactly Are We Buying, ESSEC MBA International Luxury Brand Management lecture, Thomas Morel, February 10, 2011 13.CourtingTeens the Next Wave of Customers, JCK, March 2008 14.What Teens Want, Buzz Marketing Group, by Tina Wells, July 29, 2008 15.No Escape: Marketing to Kids in Digital Age, Multinational Monitor, by Jeff Chester and Kathryn Montgomery, July/August 2008, Volume 30 No. 1 16.Turning “Like” to “Buy”: Social Media Emerges as a Commerce Channel, Booz & Company, Matt Anderson, Joe Sims, Jerell Price, Jennifer Brusa, April 17, 2001 Coordinating Prof. – Simon Nyeck ( Academic Director ESSEC MBA in International Luxury Brand Management )
18 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
20
Generation Z – The Future Luxury Consumer
THANK YOU!
CONTACT
If you have any comments or questions and you would like to learn more about our
research, findings and implications or if you simply want to talk to us – get in touch, we look forward to hearing from you.
18
Octavian Cornea Oriana Khatso
Lidija Pehak Kolenko Shivan Mehra
CORNEA – KHATSO – MEHRA – PEHAK KOLENKO