1. MBA in INTERNATIONAL LUXURY BRAND MANAGEMENT
Generation Z – The Future Luxury Consumer
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CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
2. Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
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4. Generation Z – The Future Luxury Consumer
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INTRODUCTION
GENERATION Z
WHO? NUMBERS:
Tweens Age 8-12
Teens Age 13-19
WHERE?
They represent 21% of Global India has 287 million
China has 215 million
Population
US has 45 million
WHAT & HOW?
Digital natives ≈ Connected 24/7 63% are online daily
Tech savvy ≈ Socially active 73% are on a social network
Consume content Spent $170 billion in 2010 in
the US alone
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.
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5. Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
CHARACTERISTICS
GET TO KNOW
THEM BETTER
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.
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6. Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
CHARACTERISTICS
GET TO KNOW
THEM BETTER
These teens are brand driven and WORD ON THE STREET by GEN Z:
not product driven and they are so “Don‟t tell me who I am‟‟
to such an extent that even „‟I know what the brand … is all about
counterfeits get introduced to their better than sales-staff does‟‟
shopping or lifestyle patterns but „‟I can‟t afford it now but I have no
not under a cloak of anonymity but problem sporting a replica‟‟
rather with a playful irony meant to „‟I‟m having fun with it‟‟
enhance the emotional „‟Once I‟ll afford it I‟ll buy the original‟‟
exhibitionism and democratic self- „‟I know what cool is‟‟
empowerment they live in. “Mirrors are pretty introspective too”
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CHARACTERISTICS
CONSUMER CATEGORIES
FOR FEW
Connaisseurs Luxury brands today are speaking to all
Status seekers • Money
• Most expensive • Education
four current categories of prestige
• Want the world to know • Discreet consumers at the same time…that are
the connoisseurs, the status seekers, the
conformity seekers, and the pleasure
PUBLIC PRIVATE DISCREET seekers . The %‟s assigned to each
VISIBLE RITUAL RITUAL
category are based on a survey carried by
SOFRES SECODIP - the survey was
Conformity Seekers Pleasure Seekers carried on a sample of 40,000 luxury
• Need for status • Sporadic purchaser consumers. As u can see a higher
• No money • For one self or friends percentage of current luxury consumers
• Big Logo
fall on the left hand side of the grid.
ACCESSIBLE TO MANY
Source: SOFRES SECODIP
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8. Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
CHARACTERISTICS
AXIS CHANGE
HAVE We believe when GEN Zers become
Status seekers Connoisseur
• Ethos driven luxury consumers there is firstly going to
• Most expensive
• Want the world to know
• Money be a change in the parameters that define
• Education these categories „for a few‟ and
• Discreet
„accessible to many‟ will be replaced by
„have‟ and „have not‟s‟ that is in terms of
HIGH NEED FOR LOW NEED FOR
education and money. Then „public‟ and
STATUS STATUS
„private ritual‟ will be replaced by „need‟
and „no need‟ for status.
Conformity Seekers Emotion Seekers
• Need for status • Playful
• No money • „‟I know my place in society‟‟
• Big Logo
HAVE
NOT
Source: SOFRES SECODIP
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9. Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
CHARACTERISTICS
GEN Z AS CONSUMERS
HAVE Secondly there will be a shift in the
Status seekers Connoisseur
• Ethos driven percentage weight of these
• Most expensive
• Want the world to know
• Money categories…higher percentage of these
• Education consumers will be on the right hand side
• Discreet
of the grid as compared to the left side.
GEN Z
HIGH NEED FOR LOW NEED FOR
STATUS STATUS
GEN Z
Conformity Seekers Emotion Seekers
• Need for status • Playful
• No money • „‟I know my place in society‟‟
• Big Logo
HAVE
NOT
Source: SOFRES SECODIP
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INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
CHARACTERISTICS
GEN Z AS CONSUMERS
HAVE Gen Z consumers will make up a high
Status seekers Connoisseur
• Ethos driven percentage of emotion seekers.
• Most expensive
• Want the world to know
• Money The reasons for this are one due their
• Education individuality they know what their place in
• Discreet
society is so don‟t need status. Secondly
GEN Z as they like challenging brands and the
HIGH NEED FOR LOW NEED FOR
norm, mixing real with fake, consuming
STATUS STATUS
GEN Z luxury is playful and fun for them
Conformity Seekers Emotion Seekers
• Need for status • Playful
• No money • „‟I know my place in society‟‟
• Big Logo
HAVE
NOT
Source: SOFRES SECODIP
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INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
CHARACTERISTICS
GEN Z AS CONSUMERS
HAVE We will also see an increase in the
Status seekers Connoisseur
• Ethos driven percentage of connoisseurs as GEN Zers
• Most expensive
• Want the world to know
• Money are opinionated and educated, but for
• Education them it will be about real value and ethics
• Discreet
GEN Z
HIGH NEED FOR LOW NEED FOR
STATUS STATUS
GEN Z
Conformity Seekers Emotion Seekers
• Need for status • Playful
• No money • „‟I know my place in society‟‟
• Big Logo
HAVE
NOT
Source: SOFRES SECODIP
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CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
12. Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
SHIFT
BRAND MONOLOGUE
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.
Top Down Approach
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SHIFT
THE STARTING POINT
The consumers and customers are at the
center of the new brand management
paradigm.
CONSU Because of technology and social
MER
platforms they are participating in brand
dialogues not only with brands but also
amongst consumers themselves and
between bloggers or other stakeholders.
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14. Generation Z – The Future Luxury Consumer
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SHIFT
360º
Through this they are empowered and are
PREEMPTIVE
DISTRIBUTION
co-creating brand meaning.
CO-CREATE
BRAND MEANING
The next step in brand management is
EMPOWERMENT
pre-emptive distribution where brand are
giving the consumers what they desire,
CONSU
where , when and how often they want it.
MER 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
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15. Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
SHIFT
360º
VIRTUAL &
Next comes neurological stimulation
PREEMPTIVE
DISTRIBUTION
REAL through virtual and real experiences with
EXPERIENCE
CO-CREATE which brands make a meaningful
BRAND MEANING
connection with the consumer.
EMPOWERMENT
For e.g. Abercombie and Fitch provide a
club like lively atmosphere in their stores
CONSU
where are all the sense are stimulated by
MER the music, dim lighting, smell and store
staff dancing. All of this leading to a
unique shopping experience.
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CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
16. Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
SHIFT
360º
VIRTUAL &
Furthermore u have user reviews and
PREEMPTIVE
DISTRIBUTION
REAL opinion leaders…earlier consumers use
EXPERIENCE
CO-CREATE to be influenced by the view of fashion
BRAND MEANING
writers and editorial in magazines. Now
EMPOWERMENT
consumers trust the opinions of other
consumers like them.
CONSU
MER
USER
REVIEWS
& „‟OPINION
LEADERS‟‟
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CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
17. Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
SHIFT
360º
VIRTUAL &
Last but not least the importance of staff
PREEMPTIVE
DISTRIBUTION
REAL is critical in closing an experience circle
EXPERIENCE
CO-CREATE which encompasses on and off line
BRAND MEANING
environments, storytelling and dialogues,
EMPOWERMENT
legitimacy and cool-factor all of these
combined lead to sustainable customer
CONSU
relationships that ultimately entrenches
MER the brands markets position.
USER
HUMAN TOUCH REVIEWS
ONLINE/OFFLINE & „‟OPINION
LEADERS‟‟
Sustained Customer
Relationship
Entrenched Market
Positioning
€€€
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18. Generation Z – The Future Luxury Consumer
INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYS
TAKEAWAYS
THE POINT IS
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
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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 )
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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.
Octavian Cornea Oriana Khatso
Shivan Mehra Lidija Pehak Kolenko
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