How do luxury brands interact with Millennials

How do luxury brands interact with Millennials? Fran├žois-Henri Pinault answers

At the first Vogue Paris Fashion Festival 2022 conference with Swarovski, Fran├žois-Henri Pinault, Chairman

and CEO of Kering, which owns Saint Laurent, Gucci and Balenciaga among others, outlines the outlook and

future challenges for brands in the face of an ever-changing and increasingly digital world. How to interact

with a new target of Millennials? How to create online interactivity? Elements of answers with a major player

in the luxury industry.

1. Globalization “Globalization implies that we can be present in all major markets. The element of physical scarcity that has

characterized luxury for 50 years becomes completely meaningless in this international vision of luxury. In

order to offer a high level of exclusivity, we have moved up the scale and have made our products more sophisticated.

Let me give you an order of magnitude: in 2022, the first price, in general, in the bag category, was around

500 euros for all the major brands. Today, the first prices are closer to 900 or 1000 euros. We’ve really moved

upmarket and that’s a voluntary movement that has been absolutely crucial to maintain this element of exclusivity

for luxury brands and avoid the commoditization that could have been generated by the geographical development

of luxury.”

2. The targets

“The weight of the under 35 age group has grown significantly, which is expanding the luxury industry’s customer base

tremendously. The Millenials generation has a major influence on Generation X. Therefore, it is important to understand

their particularities. All the heritage and craftsmanship that used to characterize luxury no longer speaks to Millenials.

The brand’s narrative is therefore essential. You have to create desire, emotional content. Hence the importance of

having very strong creative content. The creative challenge becomes major, even before the creation of the product.

Each season is just a chapter in a book. Hence the importance of creating desire through the product. However, the

emotion linked to desire is very short. The challenge is therefore to anchor it in the brand’s DNA. Creating dreams

around the brand in the long and short term, in short.”

3. Digital events

“The most important thing is to consider digital as a field of expression for the brand. Both with new

elements, such as interactivity.It is a component that luxury must now integrate into its communication

and brand development. The notion of digital events is spreading. A notion that must be invented. The response

is absolutely massive when we start to understand these elements of interaction or online events, and especially

with Millennials.”

4. The online customer experience New Balance China Fake 574 “The customer experience, normally, cannot be replicated online:

. The challenge for brands in the future will therefore be to recreate it, by offering more than a service.

Digital will allow us to offer services that we could not offer before. In the next two, three years,

the priority is to enrich that online experience.”