Organized by Snap, the event “Crafted for Luxury is dedicated to the Luxury industry. On the occasion of this 2024 edition, the results of an exclusive study carried out with Ipsos were revealed regarding new modes of luxury consumption. Six lessons to remember.
1. Gen Z and Millennials: two new generations of luxury buyers
Millennials represent 51% of luxury buyers in France, while Gen Z constitutes 40%. For these consumers, luxury is a means of personal expression and a reflection of modern societal values. Thus, 18% of 13-44 year olds in France have purchased at least one luxury product over the past year.
2. Luxury continues to seduce
Nearly half (49%) of luxury buyers plan to increase their spending in the next 12 months. Additionally, 24% of aspirational buyers (those who buy premium brands but not yet luxury) plan to take the plunge next year. Luxury Houses therefore have every interest in maintaining an accessible range of products, in parallel with their strategy of promotion aimed at Very Important Consumers (VIC).
“Exclusivity has always been a fundamental promise for luxury consumers. Our new research, carried out in partnership with Snap, highlights how this definition has evolved from a status symbol to an expression of values and “Our results show that luxury buyers are buying earlier because technology has helped increase accessibility.”, Daniel Wong-Chi-Man, Global Head of Media at Ipsos.
3. Purchases influenced by those close to you
The opinion of loved ones is decisive for luxury buyers since 60% prefer brands that are popular among their friends and family, and 59% seek their advice before making a purchase.
4. Digital as a “Shopper Assistant”
The study shows that 73% of luxury buyers spend more time researching and deciding on their purchases when it comes to a luxury product. In France, 86% of Gen Z and millennial luxury buyers say they use digital channels for inspiration or to consider purchasing, while 81% use them to discover products and 87% make purchasing decisions. online. Digital therefore now plays a significant role in the purchasing process for a luxury product.
5. Augmented reality for the customer experience
Virtual try-on initiatives using augmented reality are increasing, particularly among luxury brands. This technology allows you to try on a piece of jewelry, or even makeup, without having to go to the store, contributing to the personalization of the customer experience and therefore promoting conversion to purchase. Thus, according to the study:
- 55% of luxury shoppers believe that AR recreates the in-store experience when purchasing online.
- 53% feel more comfortable trying a luxury product through AR rather than in-store.
- And 59% think that AR helps them concretely visualize a luxury item.
“With 89% of respondents saying they would be interested in using augmented reality when interacting with luxury products, advertisers must embrace the digital shift and create seamless experiences that blend physical stores and channels online”confirms Daniel Wong-Chi-Man.
6. Snapchat: a significant contribution to the luxury purchasing journey among Gen Z and Millennials
The study finally shows a certain influence of the platform on Luxury purchases:
- 23% of daily Snapchat users have purchased luxury products in the past year (vs. 18% among 13-44 year olds).
- 54% of users are more likely to purchase a luxury product after interacting with the brand on Snapchat.
- And 78% of Luxury buyers are monthly users of the platform, with 54% considering the platform to be ideal for discovering new Luxury products.
“The real challenge for brands today is to adapt to the expectations and consumption patterns of a new generation, digital natives”concludes Geoffrey PerezHead of Luxury at Snap.
Scope of the study: more than 14,000 people aged 13 to 44 in six countries.
