This myth-busting global report is a ready read for any individual in charge of a luxury brand irrespective of the concerned product or service category. Both internal and external communication professionals working with luxury brands, including the upper-level students, scholars and the ones imparting education on luxury will nd this report extremely useful. This Global Millennial Survey has managed to gather over 3500 closed responses from across 16 outstanding countries on luxury map of the world. Our ndings propose that Luxury brands need to make signicant changes in their communication strategy if they have to scale unusual heights created by the Millennials. This also means that the subsequent wave of luxury managers have to come pre-installed with new age communication weaponry to tackle the situation.
How Global Millennials percieve Luxury Brands' Communication (Love Ranga)
1. 1
The Global Millennial Codification
of Luxury Communication
CX2017
How Millennials interpret Luxury Brands' Communication
The Ghost of Luxury: Luxury Industry Analytics | Jan, 2017
www.theghostouxury.com
3. 3
Content
Foreword 40
Executive Summary 50
Figures and Findings 60
Feature-based Communication 70
Identity-based Communication 80
Product-based Communication 15
Online-Ofine Communication 16
About Us 18
Disclaimer 19
Contact Us 20
4. 4
Dear Luxury Enthusiast
It is with immense gratication that we present to you the rst of its kind analytical report on
the Impact of Communication tactics employed by Luxury brands on Millennials. With this, we
are launching a new wing as The Ghost of Luxury: Luxury Industry Analytics.
This myth-busting global report is a ready read for any individual in charge of a luxury brand
irrespective of the concerned product or service category. Both internal and external
communication professionals working with luxury brands, including the upper-level students,
scholars and the ones imparting education on luxury will nd this report extremely useful. This
Global Millennial Survey has managed to gather over 3500 closed responses from across 16
outstanding countries on luxury map of the world. Our ndings propose that Luxury brands
need to make signicant changes in their communication strategy if they have to scale unusual
heights created by the Millennials. This also means that the subsequent wave of luxury
managers have to come pre-installed with new age communication weaponry to tackle the
situation.
With the Digital medium taking over, some of the conventional promotion rules have become
archaic, prolonging only to be replaced by the new ones. For how long can luxury brands keep
highlighting their country of origin? Can the air of mystery excite money out of Millennial
pockets? How do they envisage differentiation in ad campaigns? Who do they favour, a
Hollywood star or an Equestrian Sport player?
Let us jointly go through what Millennials have to reveal about themselves in this report.
Love Ranga | Chief Strategy Ofcer
The Ghost of Luxury: Luxury Industry Analytics
Foreword
5. 5
The Dawn of the Age of Disruptions
Luxury as an industry can be doubtlessly
identied as the bringer of Disruption.
From astounding product innovation to
practising of upside-down strategies, the
evidences are countless in number. It is
only now that the industry of disruption
stands face-to-face with total disruption
itself. While some have declared it as the
'end of Luxury, others have announced the
demise of theory, and birth of more human
things. When the effects of
democratization could not even subside,
there rose another challenge in the form
of digital medium. Now, it has come to the
Millennials to force luxury into another
change.
Embrace Change
As it is often quoted, the change is
inevitable. But, no one added that it is
going to be too paced for luxury. The
companies therefore have two choices,
either embrace the change to remain
relevant or risk their very existence itself.
What is ironic is that, a few brands have
stuck to the traditional laws of
communication and have yet seen growth
in visibility and value. To succeed, probably
it is best to curate a strategy driven by
traditionality and modernism together.
Compartmental Communication
The survey has lead us to a fascinating
conclusion. The Millennials are not a rigid
segment of society, which is why there is
no obvious favour or opposition to a
specic. There are small sections within
the wealthy millennial population with
varying tastes and preferences.
According to the research, an improved
solution lies in compartmentalising
communication rather than observing a
broad application. Much like, how luxury
goods have been classied to
accommodate different age groups,
maturity levels and price points.
Content Merchandising
The time has come for luxury brands to
focus on targeted communication
strategies. Not every social media portal
can have same brand content if
engagement is the objective. No social
media app is equally strong in every part
of the world. No online promotion can
replace ofine communication. And still,
there has to be a reason why one should
visit every online manifestation of a luxury
brand. Otherwise, why not stay satised
with just one of them? Content therefore
needs to be merchandised for any
improvement in efciency and impact.
Executive Summary
6. 6
Figures & Findings
Communication is in all probability the most demanding
part of a Luxury Business. If it was not, the Millennials
leave no stone unturned to conrm this. Much has been
said about the new ways of promoting luxury in the
contemporary world. We decided to corroborate it all by
directly probing Millennials on both the basics and more
complicated luxury communication strategies.
Conducted in two parts, the survey resulted in a report
covering results from all of them, but not in entirety
individually. The inclusive ndings can be found in the
Book, The Ghost of Luxury: Strategic Luxury Brand
Management, where they have been utilised to decode
the new era of luxury brand management
For ease of understanding, we have separated Luxury
Communication approach under four categories. They
are:
| Feature-based Communication
| Product-based Communication
| Identity-based Communication and
| Online Communication
Let us now go through what Millennials revealed about
themselves on how they interpret communication
strategies used by Luxury brands. .
7. 7
Feature-based Communication
Exclusivity is one of the indispensable needs of
Luxury. It has long been in the listing of luxury
features a brand must own. While their parents
did not doubt it, the Millennials are not as
afrmative towards it. In fact, 64% of our
respondents feel that Luxury brands are only
exclusive in Communication. In other words,
according to them, the perception of exclusivity is
being created either through communication or is
articially induced. This means, going forward
luxury brands need to convince the Millennials of
their genuine exclusivity. And, this will beyond
doubt necessitate introduction of newer tactics in
promotion strategy.
Q1: Luxury Goods are exclusive:
Note: All gures are in %
36 By Nature
34 In Communication
30 By Force
8. 8
Limited editions are one of the nest ways of
highlighting Exclusivity. Most of the product
categories within luxury exercise this
conscientiously. Every now and then, we see luxury
brands promoting their quantity-bound items. Do
they really work their magic now? Or is luxury
blindly doing what it has been doing since decades?
The Millennials in our survey do not seem to get
excited by limited editions. In fact, 58% conveyed
that they do not nd limited-editions intriguing.
This is evidently in line with their response to the
previous question. A stronger effort will therefore
be required to instil their trust back in limited
editions. Otherwise, a replacement is going to be
difcult to think of.
Q1: Do limited-editions intrigue you enough to
indulge in them?
Note: All gures are in %
42
58
Yes
No
9. 9
The right mix of tangibles and intangibles
translates into a triumphant luxury brand. It is a
universal understanding that while paying for a
luxury product we pay for intangibles too. How else
can we describe the price tags that go beyond the
real value of used material? The majority in
Millennial group are less likely to loosen their
pocket for intangibles. It is also true that luxury
cannot exist without the intangibles. So, what
should they communicate more now, tangibles or
intangibles? This is one answer, for which luxury
brands have to debate internally.
Q: What are you less likely to spend on?
Note: All gures are in %
39 Tangibles
61 Intangibles
Many refute that not all luxury goods are of
superior quality. The fact however is that they are
expected to possess quality as one of the features
by everyone. The Millennials do not disappoint us in
surprising here as well. They appreciate quality
more in relation to a Revived Product. The second
spot has been assigned to Quality Creative
Product, with a difference of 18% over high quality
but basic product. .
Q: Rate them in order of increasing importance.
Note: All gures are in %
19Hi-Quality Product
37Hi-Quality Creative Product
44Hi-Quality Revived Product
10. 10
Both the clients and brands fancy inimitable
products in their ownership. Uniqueness is
something luxury derives right through brand's
Identity. However, there are other disconnected
ways of attaining supercial uniqueness. Not every
brand creates products in accordance to their
Identity. In fact, most of them do not have a
strategic identity in rst place, but their products
do sell. As expected, the Millennials are much more
informed than their predecessors are. Though not
by a great margin, but they do understand that
genuine uniqueness emerges from the brand core.
The Millennials have placed DNA, at the same level
as personalised products. The second spot goes to
what luxury identies as brand experience.
Q: Best way to achieve enticing uniqueness for a
luxury brand is?
Note: All gures are in %
16 Through their Designs
24 Through their Experience
30
Through their Personalized
Products
30 Through their DNA
11. 11
Identity-based Communication
Managers, Consultants and Academicians around
the globe have constantly stressed upon the
signicance of Brand Identity in the eld of Luxury.
Owning this understanding is quite ordinary for
practitioners, but not for luxury buyers. The
Millennials however tend to research and know
what exactly they are buying. The fact that most
luxury brands exposed themselves to exploit world
wide web has left younger generation more
knowledgeable than ever. A good 56% believe that
luxury brands need a distinguishing identity more
than the mass and premium brands.
Q1: Who needs a clearly distinct Identity more?
Note: All gures are in %
13 Mass Brands
31 Premium Brands
56 Luxury Brands
12. 12
What is remarkable here is that the luxury brand
with 'not so easy' to comprehend communication
style, is not only judged as the most intriguing, but
is also rated highest on luxury quotient and buying
preference by the Millennials. While, the
contemporary situation of respective brands can
be debated, the respondents do have something
crucial to imply here. This does not mean that
every luxury brand should now construct
communication campaigns that are hard to grasp.
We leave it up to the brands to decode the rest.
Q1: Whose communication style is more
intriguing?
Q2: Whose communication style is easier to
understand?
Q3: Rate them on their luxury quotient:
Q4: Which brand would you buy irrespective of the
product price?
17 1262 09
24 2311 42
16 2254 08
14 2655 05
Q1
Q3
Q4
Q2
CoachGucciHermèsLouis Vuitton
13. 13
Extending a luxury brand translates into a good
business move, but it also present its own unique
challenges. In recent times, we have seen truly
charming brand extensions in luxury. The idea of
being a lifestyle brand has found favour in many
global business plans. The Millennials however do
not seem to favour them. A majority 92% require a
strong reason to buy cross product of a luxury
brand with different dominant or initial product
category.
The brands therefore have two options. One, to
venture into 'natural' or 'relatable' extensions and
those for obvious reasons can only accommodate a
maximum of two or three product categories away
from the core one. And two, to communicate every
extension in a way that it appears to be
unquestionably 'natural'. Is there a third option?
Q: Do you need a strong reason to buy an
expensive watch from, what by denition is a
leather brand?
Note: All gures are in %
92 Yes
08 No
14. 14
An uncomplicated enquiry as it appears reveals
much more than it seems. The Millennials for the
rst time in our research falter on celebrity
engagement. 46% of our respondents consider
that luxury brands bring in celebrities only to lure
them into buying their goods. 29% feel that the
brands try to highlight a certain lifestyle through
celebrities. Only a low 12% feel that celebrities are
used to promote the brand's identity. Has the time
come for luxury brands to think beyond glamorous
celebrities?
Q: Why do Luxury brands choose celebrities for
their promotional campaigns?
Note: All gures are in %
29
To suggest you appear how
the Celebrities appear
13
You listen more to Celebrities
than the Brands
46
To lure you in to buying
their products
12
Celebrities help them in
promoting their Brand
Identity
15. 15
Product-based Communication
It is on old acceptance that product functions and
features do not matter much when it comes to
luxury. Things for now and for new have changed if
not severely. 51% Millennials feel that Feature-
based communication approach helps them in
deciding their luxury purchase. Does this further
adulterate the demarcation between the
communication style of luxury and premium?
Q: Does product feature based communication help
you in deciding your luxury purchase?
Note: All gures are in %
51 Yes
20 No
29 Depends on the product
16. 16
Less than 1% of the respondents conveyed that
their liking a brand's social media page or post
means they would go on to buy their product. Their
interest is mostly restricted to the excellence of
content. 31% said it means nothing at all. The
unambiguous conclusion is that Social Media is a
medium to inate reach, not revenues. Is the
number of views a better metric then? Or have
luxury brands gured out something better?
Q: What do you mean, when you like a luxury
brand's Social Media Page or Post?
Note: All gures are in %
50% do not nd luxury brands' online and ofine
communication approach consistent. It is
therefore on the sales ambassadors to pitch in
and mend this breach. Once again, Millennials
display the analytical side of their personality. The
results suggest that 92% of the respondents
actually look for consistent communication.
Q: Do you nd luxury brands' online and ofine
communication approach in harmony?
Note: All gures are in %
42Yes
50No
08Who cares!
Online-Ofine Communication
31 Means nothing
68 Means I like the content
01 Means I will buy their product
17. 17
Redundancy is one quandary, most luxury brands
suffer from online. The pressure to maintain
coherence, unfortunately leads to replication of
content across multiple social media websites.
But, no answer lies in choosing either of the one.
With so many messaging apps and websites, it is
tricky to produce dedicated fresh content for every
single one of them.
Q: Is their content redundant across multiple
social media sites?
Note: All gures are in %
The Millennials are more likely to be introduced to a
luxury product online, but prefer to buy it ofine.
For us, it rests the idea of shutting physical
stores to become 100% online for now.
Q1: Where are you more likely to buy a luxury
product?
Q2: Where are you more likely to get introduced
to a luxury product?
Note: All gures are in %
Online
Ofine
Q1
Q2
83 Yes
17 No
34
66
59
41
Online
Ofine
18. 18
About Us
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19. 19
Disclaimer
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This report is written in general terms. It should be construed neither as professional advice,
nor as a commendation of any specic approach or strategy. The results herein do not present
any company, brand or situation-specic solution, and they should not be taken as
comprehensive or partial representation of the environment under argument.
The report does not mean to classify or pass judgement on the market value, positioning or
strategies of any brand or company. We also do not intend to favour any brand or phenomenon
through this report.The views summarised herein are those of the respondents and we do not
guarantee their accuracy or completeness in anyway. The Ghost of Luxury has not recorded
respondents’ personal information that exposes their nancial status, physical or digital
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LOVE RANGA
THE GHOST
OF LUXURYSTRATEGIC LUXURY BRAND MANAGEMENT
FIRST EDITION
The Ghost of Luxury
The Global Millennial Codication of Luxury Communication 2017
New Delhi | Paris | Milan
www.theghostouxury.com