The infographic below from Milo.com provides some interesting insights into millennials’ ‘top’ brands - all of which are prestige, luxury brands.
It presents an interesting dichotomy given the current state of the economy and job market. Perhaps the some of the inherent attraction to premium luxury brands is in part due to the fact that many of our “helicopter parents” were able to provide us with the hottest, must-have, new ‘it’ thing as we were growing up. My mother waited in line for hours at the toy store to get me a Cabbage Patch doll when I was a toddler, and the list goes on. . .
Expectations were set early that in-demand products are attainable. Fast forward to present day and while I may have aspirationally wished, dreamed, hoped, prayed wanted to own a Chanel bag, I’ve never been in a position where I could realistically afford one (yet.) In fact, I’m unsure I will ever be able to reach my parents’ level of financial success. Perhaps echoing some of those concerns, the infographic also indicates that while they love luxury, millennials/‘Gen Yers’ are also looking for a deal.
Their combined spending power undoubtedly makes this group an attractive market, but brands should be careful about discounting strategies to capture their attention as this has the potential to lower the value of your brand. I receive emails almost every day from the Gap offering various discounts, which makes it hard for me to believe any messages that try to position their clothes differently, i.e., their “Premium Pant” and “Premium Denim” lines.
Luxury brands remain status symbols because of their exclusivity. This is not a luxury afforded to all brand categories.Target is a great example of a company who caters to champagne taste on a beer budget.
The company does a fantastic job of capturing the attention of both luxury and discount consumers with its’ Designer Collaboration collections. The limited nature of the lines is exclusive, and the marketing of each line makes it feel accessible and anything but cheap. From a branding standpoint, most of these collections are a win-win for the designers and Target.
Target is by no means considered a luxury brand per se, but their branding positions them as the upscale retailer in their category. The "Design for All" and "Expect More. Pay Less." slogans set the foundation for their brand personality, and I've found the creative is something that makes you want to start a conversation - something millennials are apt to do.
Target seems to be connecting. My favorite commerical from their Fall back to school campaign has over 630,000 views on YouTube:
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Milo.com (2011, July 18). Gen Y's Luxury Buys. Retrieved September 13, 2011 from
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