2017/11 seen displays x wellness and beauty€¦ · 2017/12 seen displays x a gen-z lens : luxury...

2017/11 Seen Displays x Wellness and Beauty

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2017/12 Seen Displays x A Gen-Z Lens : Luxury Retail

A GEN-Z LENS: LUXURY RETAIL DECEMBER 2017


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A Gen-Z Lens: Luxury Retail Contents

INSIGHT

PILLARS User Analysis Market Context Culture Technology SUMMARY Contact us


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THE LOGOINSIGHT

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As an agency we collectively source, experience and share insight on a local and global scale. This strategic approach gives us a detailed understanding of your core consumer’s behaviour

& lifestyle.

Our insight pillars serve as a 360 lens to enlighten and inspire our collaborative process.

Insight PillarsSharing

Insight PillarsSharing

MARKET CULTURECONTEXT TECHNOLOGY

What, How and Where are influential parallel brands

performing?

What are the relevant cultural and social

infulences in the daily lives of the Gen-Z?

What are the relevant macro trends in styling,

materials, services, activations we can apply

to future proof your retail activations?

Where is technology being used to empower

brands in creating human centric conversations with

consumers?

USER

How is the Gen-Z consumer behaving

today?


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A Gen-Z Lens: Luxury retail Introduction

A new generation of consumers challenge the old definition of luxury.

At its core, the luxury goods industry has always been defined by a simple paradox: its products—designed as a celebration of youth and beauty—are generally only accessible to customers “of a certain age” and relatively high income (The Robin Report 2017). With the evolution of Gen-Z as a consumer pool, luxury brands are challenged in more ways than one to resonate with the

new age customer.

This report looks at how brands are responding to these shifts in demographic and how Gen-Z are rapidly taking ownership of the Luxury Retail market.


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THE LOGOUSER


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User Analysis

GEN-Z ERA

Born between 1998-2016, Gen-Z have their own set of attitudes and

expectations. Brands are challenged to create a connection due to their

8-second attention filter.

Gen-Z, like all generations, was born from disruption. Today, the very goal of businesses, political groups – not just

technology companies – is to disrupt the status quo, to change how people think

and live.

Thanks to the internet, social platforms, smartphones and advancements in mobile technology, events and

innovations are shared instantly and disseminated globally.

HOW ARE THEY DIFFERENT?

• Technology is a way of life for them

• They crave flexibility and freedom to innovate; driven to succeed and are entrepreneurial, not constrained by

traditional work institutions.

• They want environments where they can thrive. They have a great concern

for finding the right fit for them in terms of a job, but also social situations

• They want a clear path to success and fulfilment; they are visionaries and a

specific set of expectations

• They’re ‘hooked in’ and need constant stimulation; they drive with creativity, enthusiasm and have expectation of

reward

PIVOTAL TO BRANDS

With the Gen-Z influence becoming such a pivotal market opportunity for

brands, they need to take notice of what Gen-Z look for when investing their

loyalty.

Be real: 77% like ads that show real people in

real situations 65% dislike ads that make life look

perfect

It’s about being unique: 58% prefer to create their own fashion

statement• 49% pay extra for a product that is

consistent with the image they want to convey


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account for 45% of the global personal luxury goods market

User

FORBES 2017

By 2025, Millennials and Gen-Z groups will


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User AnalysisConsumer Profile

A NEW GENERATIONThe way that consumers perceive luxury products is in flux. And the Gen-Z audience is driving it. Their perception on value and luxury is different from any generation prior. There are several economic and socio-psychological reasons for this to be explored. The parents of today’s middle-class teens are seen to be the first generation to be able to buy into luxury brands. In the more traditional sense, this would have been an Apple device or Chanel glasses for example. For today’s teens looking on, the cache of owning luxury products in their traditional guise is no longer as strong.

A CHANGING PARADIGM Gen Z are part of a digital revolution, leading to a different perception of ‘time’ ‘space’ and ‘possibilities’. This subsequently changes the meaning of consumption to Gen-Z. “Consuming products and brands isn’t just a way to say who you are but a way to define who you are”. With more financial barriers on the horizon than ever before, many will feel they won’t actually ever pay off university debt or be able to own their own house, choosing to spend their cash on non-essential investments, living in the short-term.

GEN Z: LUXURY STREETWEAR HYPE With the line between luxury and streetwear becoming blurred, some might think that too many streetwear references risk diluting a luxury brand. As the trend continues to grow, it culminates the birth of street-luxe labels like Vetements or collaborations such as Louis Vuitton X Supreme. Noticing this shift, luxury brand’s relationships with the likes of Hypebeast and Highsnobiety are changing way of engaging by creating content and narratives.

Key take aways• OUT WITH THE OLD • SHORT-TERM CONSUMPTION• CONNECTIVE NARRATIVES

HYPEBEAST

APPLE DEVICE IN USE ON THE GO i-D MAG

LV X SUPREME COLLABLOTTIE MOSS REINVENTS CHANEL GLASSES


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Brands are cashing in on millennial parents who are creating ‘mini-me’ instragrammers. These Gucci-clad toddlers are generating thousands of likes on Instagram.

40% of millennials are parents

User Analysis

BUSINESS OF FASHION 2017


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THE LOGOMARKET


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Market Insight

THE GUARDIAN (2017)

In this climate, we need to be orchestrating a physical retail space which is all-encompassing, to create...

the ultimate shopper experience


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Market InsightParallel market activity

Instagrammable boutique fitnessFor Gen-Z’s, good health is indicated by both looking good and feeling good, and they have a strong sense that these two should come together. Many are being enticed by design-led fitness studios that provide an experience that is aesthetically pleasing above all else, with instagrammable slogans and lighting. This accounts for the shift towards boutique fitness. Studios like Blok Gym & 1-Rebel are able to offer the specialist classes that Gen-Z expect, for a level of quality that justifies their price point.

The automotive industry for Gen-ZAs the luxury retail industry turns its attention to the next generation of consumers, the automotive industry is following suit. It is reported by Stylus (2017) that by 2025, tech-savvy teens will constitute 80% of car buyers globally. As we know, Gen-Z approach spending with a short-term lens, with 32% of those surveyed saying that car ownership means a sense of freedom. As a reaction to this, car retailers are re-steering their relevancy to this market via softer-sell showrooms, cross platform purchasing and sharing economy innovations.

Food and lifestyle evolution Restaurants are creating spaces with a prime focus of making it ‘shareworthy’. Physical spaces that are flooded with natural light, bespoke fittings and a sense of uniqueness, permit more beautiful photos and are designed around shareability. As with luxury fashion, exclusivity also evokes curiosity. ‘Out of The Blue’ at the Berkeley hotel is a highly stimulating immersive cocktail experience. In a secret vault, cocktails are served as guests sit surrounded by four huge screens on which visuals play – the idea being that the optical stimulation will affect the taste of the drink itself as the backdrop is shared online.

Key take aways• SHAREABILITY • BOUTIQUE

• OPTICAL STIMULATION

BLOK GYM

GEN-Z INSTAGRAMMABLE FOOD1-REBEL LONDON GYM CLUB

OUT OF THE BLUE EXPERIENCE VOLKSWAGEN SHOWROOM


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Market Insight

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and eat what they see on social media

With the rise in popularity of food and lifestyle bloggers, the newest kids on the block want to put on social media the luxury places they eat...

LENORE SKENAZY - FOOD BLOGGER AND FOUNDER OF FREE-RANGE KIDS (2017)


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THE LOGOCONTEXT


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their hyper-informed eyes become sharper

Context

Brands must be multi-faceted to have a chance to connect with a generation of young fashion consumers in a retail space, as their attention spans are growing shorter...

FORBES 2017


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ContextTrend Analysis

Colour: Gen-Z Yellow / Primary colours If 2017 was the year of Millennial pink, then 2018 could well be the year that Gen-Z yellow steals the spotlight. Shown by luxury retailer Mansur Gavriel’s NYC pop-up. it is associated with well-loved Gen-Z brands like Snapchat, Bumble and McDonald’s, and championed by emerging style influencers. As well as working well on Instagram, it also successfully joins the fine line between discomfort and familiarity that today’s most disruptive trends do so well. Bright primary shades lend a playful, light-hearted feel to stores when used together in the classic combination of red, blue and yellow.

Gallery retail Streetwear and sneaker retailers look to luxury for new store designs that bring a sleek, high-end feel to more casual environments. Key design features include clean white interiors, marble accents, and opulent detailing. Uber cool New York-based Supreme and London-based LN-CC lead the trend. Skateboarding label Palace gives its new Manhattan flagship a decadent look using columns, marble, and classical art-inspired installations.

Unexpected retail: Showroom hybridsGalvan Studio, in Notting Hill is a far cry from a retail space as we know them. From afar this looks like an independent retail boutique, but it actually serves as the brand’s showroom, studio and workspace. You can schedule a fitting, or shop the current collections. Paper Mache Tiger have also turned their showroom into a store/showrrom hybrid to help the foreign brands they represented who were suffering by not having any physical London store stockists. “Pretty much everything but the couch can be bought”.

Key take aways• GEN-Z YELLOW

• DOWNTOWN OPULENCE

• ACCESSIBILITY

YOU ARE HERE PRIMARY SHADES

PAPER MACHE TIGER LN-CC STORE

MANSUR GAVRIEL YELLOW POP-UP

PALACE


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an open invitation

Context

Adidas has just opened the doors to a new flagship store in London‘s Shoreditch aiming to provide a space for local creatives to meet and network. “This new concept store will provide a unique retail experience, combined with a platform to champion young local creatives in the East London area”

The closed-off aspect of luxury retail is being replaced with

BARRY MOORE, ADIDAS UK BRAND DIRECTOR (2017)


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THE LOGOCULTURE


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it’s in to stand outGen-Z has been raised with a “think outside the box” mindset – they’re storytellers.

Through experiences like electing the first black president and legalising gay marriage, diversity and open-mind thinking mark this generation’s mentality.

Culture overview

Model Adwoa Aboah was described by the Times as a dissenting Gen-Z spirit defining our era. Now more than ever...

PROGRESSION.ORG (2016)


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CultureGen-Z overview

Use of social platformsWhile the mass market appeal of social media might seem at odds with the exclusive nature of high end fashion, many luxury brands are starting to embrace influencer marketing. This strategy is how these luxury brands resonate with the younger consumer making them feel more accessible. 71% of luxury brands say that influencers play a “critical” role in product launches providing the collaboration is a good fit (Econsultancy 2017). Influencers such as ‘Gully Guy Leo’ support marketing campaigns that show how their product is part of a world that is moving forward, and those that match their practical and ambitious attitudes, rather than just appealing to a shallower desire.

Stores as public cultural spacesResponding to the Gen-Z shift towards local community and open invitation culture, UK department store, Selfridges ran its “Music Matters at Selfridges” campaign in the latter part of 2017. The initiative was a response to the closure of live music venues in the UK – most notably in London, where some 40% of venues have shut their doors in the past decade.

Gen-Z: Continue to avoid stereotypes Fashion is often the nucleus of culture where progressive ideas are spread to the mainstream. Gen-Z and fashion icon, Jaden Smith, was the face of the Louis Vuitton campaign, donning the fashion house’s womenswear collection in a series of print adverts. Smith has been very open about his seeing clothes as a form of expression for anyone, dismissing gendered clothing as archaic and meaningless. Additionally, the CoverGirl brand has become synonymous with inclusivity and breaking down societal barriers. Using male beauty blogger James Charles on their front cover encapsulated this.

Key take aways• AUTHENTICITY • CULTURALLY AWARE • CONTEMPLATION

KELLY MAKER LUXURY INFLUENCER

GULLY GUY LEO X SUPREME

JAMES CHARLES COVERGIRL

LOUIS VUITTON X JADEN SMITH

MUSIC MATTERS @ SELFRIDGES


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Culture overview

More and more designers are elevating the ordinary elements of mass consumerism in a socio-political statement, as the corporate logo offers a new vision for luxury fashion. This novelty is primarily to reach to a different audience and demographic that stereotypically has little to do with luxury fashion.

BUSINESS OF FASHION (2017)

luxury fashion learned to love ikea


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THE LOGOTECHNOLOGY


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Technology

Big companies are having difficulty conceiving a large-scale method to fairly sell hyped products, in comparison, retail stores are having more success when it comes to serving their clients with fair release strategies and making sneakerheads happy.

HIGHSNOBIETY (2017)

‘sneakerbots’ are damaging sneaker culture


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TechnologySocially diluted Gen-Z

Sneaker online raffles: Hype building This November saw the OFF WHITE X NIKE “The Ten Collection” exclusive drop. Websites such as Highsnobiety and Hypebeast continue to facilitate a platform for Gen-Z to filter the most recent drop details which often spiral onto the web, with social platforms such as Twitter and Instagram building the hype by releasing teasers ahead of release. This online hub is a gateway to an underground luxury fashion forum where Gen-Z consumers thrive.

Farfetch Store of the Future : NYCFarfetch founder José Neves has unveiled Farfetch’s Store of the Future - an augmented retail solution that “links the online and offline worlds, using data to enhance the retail experience”. Acknowledging that physical retail accounts for 93% of sales today, Neve suggests retailers need to find a way to collect information about their customers while they are browsing in-store, just as they collect data from online searches. Farfetch has employed virtual reality, emotion-scanning software, and innovative payment options to make this connection.

ScreenShop app Reailty star Kim Kardashian has unveiled the first mobile platform to seamlessly convert any screenshot on your phone into a shoppable store. Understanding the time-poor nature of Gen-Z, users simply take a screenshot, import it into the app, and its patent-pending technology generates shopping results for similar clothing at a variety of price points. Shoppers can select a luxury item and be redirected to a retail partner’s online store to complete the purchase.

Key take aways• INTERACTION • SMART SOLUTIONS• RELEVANCE

SCREENSHOP APPFARFETCH STORE OF THE FUTURE

GEN-Z E-COMMERCE USE HIGHSNOBIETY OFF-WHITE HYPE


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Technology overview

the ultimate luxury these days, is time

Spending on experiences has overtaken spending on goods recently which means that luxury goods companies like Gucci must work even harder to provide that bespoke, personal shopping experience. They’ve done this by faclilitating the first-ever virtual attendees at Milan Fashion week, hologram window displays, in-store iPad stations and a viral welcome video.

THE GUARDIAN (2017)


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User• Louis Vuitton X Supreme Coverage: http://au.louisvuitton.com/eng-au/ stories/supreme

• Hypebeast Web: www.hypebeast.com

• Highsnobiety Web: www.highsnobiety.com

Market• ‘Out of The Blue’ - The Berkeley Hotel Web: www.the-berkeley.co.uk Email: [email protected] Address: The Berkeley, Wilton Place, Knightsbridge, London, SW1X 7RL • Blok Gym Web: www.bloklondon.com Email: [email protected] Address: Clapton tram depot 38-40 Upper Clapton Road, E5 8BQ

• 1-Rebel London Gym Club Web: www.1rebel.co.uk Email: [email protected] Address: Broadgate Circle London, EC2M 2QS

Context• Galvan Studio Web: www.galvanlondon.com Email: [email protected] Address: 8 Clarendon Cross London, W11 4AP

• Paper Mache Tiger Web: www.papermachetiger.com Email: [email protected] Address: 26 Cross Street London, N1 2BG

• Palace – Manhattan Web: www.palaceskateboards.com Address: 49 Howard St. New York, NY 10013

• LL-NC Concept store - London Web: www.ln-cc.com/en/home Address: 18-24 Shacklewell Lane London E8 2EZ

• Mansur Gavriel - New York Web: www.mansurgavriel.com Email: [email protected] Address: 134 Wooster St New York, NY 10012

Further Reading Find out more

• Adidas - Shoreditch Web: www.adidas.co.uk/studioLDN_152BrickLane Address: 152 Brick Lane London,

E1 6RU

Culture• Gully Guy Instagram: Leo Mandella (@gullyguyleo)

• CoverGirl Magazine Web: fashionmagazine.com/tag/covergirl/ • Selfridges - Music Matters Web: http://www.selfridges.com/GB/en/f eatures/articles/music-matters

Technology• Farfetch Web: www.farfetch.com Coverage: www.vogue.co.uk/article/farfetch-announces-store-of-the-future


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2017/11 seen displays x wellness and beauty€¦ · 2017/12 seen displays x a gen-z lens : luxury...

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