Social Media is a huge source for brand awareness and loyalty. Instagram has upped the game in many ways, showcasing the value that a simple picture has to advertise an entire outfit worth hundreds, sometimes thousands of dollars. Facebook gives companies the opportunity to share personal brand stories that directly relate to their consumers and their lives. Social Media and E-Commerce have totally changed the face of brand loyalty – and Luxury consumers are no different.
A recent study by Deloitte shows that luxury consumers are just as influenced by social media as everyday consumers; a large portion of their shopping is completed online. Luxury brands must now be inclusive and customizable to individual consumers. Gaining new customers, when hundreds of other luxury brands exist, can be difficult. However, millennial luxury consumers are incredibly interested in luxury goods that meet these standards. So why are US affluent consumers purchasing less luxury goods ($500 or more) than other countries?
As we’ve mentioned in a previous blog, the luxury consumers of today differ from their predecessors, and luxury brands have yet to catch up.
Millennials today seek to purchase goods, specifically luxury goods, that are relevant to their lives. Quality and style are no longer the main things that millennial luxury consumers look for.
Consumers can find any information they need about a product online; this is one of the main reasons a positive, social presence in so important for a brand. Why would a Millennial purchase a $2,000 handbag that they do not feel connected to when a $600 purse has been plastered across their Instagram feed, Facebook ads, and has a story to tell?
A whopping 39% of the Deloitte study stated that their friends played a major role in their purchase decisions. That means that word-of-mouth, and even virtual word-of-mouth, is worth a whole lot more than an ad displayed across NYC Times Square. Forming a connection with your target audience, especially millennials, is vital; this is true for not only consumers, but also those in the market for a luxury home.
Millennials are currently defined as individuals born in the early 1980s to the early 2000s. This means that high income millennials are graduating from medical school, law school, business advanced degree programs, etc. and are considering their first home purchase.
This is the time to appeal to these buyers. These millennials may not purchase a luxury home now. A few years down the road, they will remember the luxury real estate professional that shared a great story on social media, had a great brand image, or that their friends or colleagues had a great experience with. Now is the time to introduce yourself into their lives.
If you’re not sure where to start, a membership at The Institute brings you one step closer to contacts who can help spread your name to this demographic. Learn more about membership here.