Amplify Presents | The New Wave of Luxury

JANUARY 2024

BRIEFINGS

IMAGE CREDIT: PETRA COLLINS. BLUMARINE, 2023

THE NEW WAVE OF LUXURY

Gen-Z has entered the chat

2

3

INTRODUCTION 4 REDEFINING LUXURY IN THE POST-PANDEMIC ERA

6

GEN Z’S APPROACH TO LUXURY 11 HOW THIS PLAYS OUT IN CULTURE 13 THE SURVIVAL OF THE FITTEST 19 OUR FOUR KEY TAKEAWAYS 23

This marks a significant departure from the historical exclusivity associated with luxury, now redefined for a broader audience.

As we delve into this analysis, it becomes evident that Gen Z‘s vision of luxury is dynamic, inclusive, and grounded in commitments to societal and environmental responsibility.

IMAGE CREDIT: HYPEBEAST

Join us in deciphering how this generation is redefining the very essence of luxury, and discover strategies for legacy brands to not only adapt but thrive in this fast-evolving landscape.

This report provides insights into understanding the nuances of this new era, where heritage becomes a potent asset for brands looking to align with the values and preferences of the discerning Gen Z consumer.

4

5

In the ever-shifting landscape of consumer preferences and cultural values, a new epoch is emerging in the realm of luxury. The New Wave of Luxury report is a journey into the distinctive mindset of a generation that is revolutionising the traditional notions of opulence and prestige. As we venture into 2024, luxury is undergoing a profound transformation, guided by the discerning tastes of Gen Z consumers.

No longer confined to the elitist narrative of the past, luxury, in the eyes of this generation, is not merely about possessions; it is an evolving concept that encapsulates personal values, sustainability, inclusivity, and digital engagement.

IMAGE CREDIT: ANCORA

Similar to shifts witnessed in other industries challenging conventional norms, the luxury landscape is now experiencing a pivotal moment. Gen Z is actively challenging established norms and seeking a more meaningful connection with luxury.

THE NEW WAVE OF LUXURY

6

7

Beyond materialism

When Gen Z connect to luxury they are referring to the emotional, experiential, and meaningful aspects of luxury—such as the joy derived from memorable experiences, the emotional connection with a brand‘s narrative, or the sense of belonging fostered by exclusive communities. It‘s a shift towards a more profound and personally resonant definition of opulence.

IMAGE CREDIT: NADIA LEE COHEN

No longer confined to material possessions, luxury has transcended the realm of tangible goods, evolving into a holistic experience that resonates deeply on a personal level. This modern interpretation of luxury offers an immersive journey that extends beyond the physical, delving into the intangible facets of life that bring genuine fulfilment.

THE NEW WAVE OF LUXURY

Cultural credibility takes centre stage

IMAGE CREDIT: BURBERRY

Within this evolving landscape, cultural credibility emerges as a cornerstone of contemporary luxury. It is no longer enough for brands to simply offer opulent products, they must seamlessly integrate with the cultural zeitgeist. This isn‘t just about association, it‘s about becoming contributors, enriching and supporting culture rather than taking away from it.

The imperative lies in aligning with societal conversations surrounding privilege, justice, and equality, thereby accentuating the brand‘s relevance and resonance within the broader societal narrative.

9 IMAGE CREDIT: BURBERRY

8

Transformative shifts In the aftermath of the pandemic‘s upheaval, luxury undergoes a profound metamorphosis. It transcends the superficial notions of external expression that once defined it. Today, luxury pivots towards internal alignment, becoming a deeply personal journey intertwined with self-exploration and the forging of a profound connection with one‘s own life.

Unveiling social inequities

IMAGE CREDIT: EMMA WINDER

The global pandemic acted as a catalyst, casting an unrelenting spotlight on pervasive societal injustices across the globe. This unforeseen event not only disrupted our daily lives but also served as a compelling force, intensifying discussions around privilege and systemic discrimination.

AMPLIFY

Young and deliberate Gen Z doesn‘t just spend time, they invest it with purpose. Unlike conventional priorities centred around accumulating wealth, Gen Z sees time as an opportunity for meaningful experiences, personal growth, and genuine connections. This intentional approach to time reflects their desire for authenticity and purpose, and a departure from traditional notions of success measured solely in monetary terms.

10

11

Impact matters 80% of young shoppers choose brands based on ethical values.. This collective stance underscores a resolute emphasis on ethical consumerism, as Gen Z seeks to align their luxury choices with brands that share their commitment to social responsibility and fair labour practices.

IMAGE CREDIT: SKIMS X SWAROVSKI, 2023

The Experience of discovery Beyond conventional consumerism, Gen Z craves discovery. Platforms like Colors, in collaboration with brands like Burberry, transcend traditional luxury by celebrating local talent and personal journeys. This collaboration serves as a curated exploration into music, enhancing the Gen Z experience.

Tastemakers in action Gen Z doesn‘t just follow trends; they follow tastemakers who shape them.

In the realm of music, Diesel and Paco Rabanne collaborate with NTS, supporting emerging artists and immersing themselves in club culture.

These partnerships not only elevate the music but also resonate with Gen Z‘s desire for authentic experiences. .

AMPLIFY

IMAGE CREDIT: BURBERRY

IMAGE CREDIT: BURBERRY

IMAGE CREDIT: BURBERRY X COLORS STUDIO

IMAGE CREDIT: ISAMAYA BEAUTY

12 13

AMPLIFY

IMAGE CREDIT:DIESEL X NTS, 2022

IMAGE CREDIT: ANNIE POWERS/THE REALREAL

IMAGE CREDIT: GUCCI

Democratisation of luxury Luxury is no longer confined to a narrow segment.

Cultural credibility has shattered traditional notions of who luxury is for. Younger generations, including Gen Z, value less the traditional markers of timelessness and status. The democratisation of luxury means brands must adapt to cater to a more diverse and inclusive audience.

Crafting connections Luxury, in the eyes of Gen Z, is not just about showcasing the end product; it‘s about the process. The emphasis on craft and connection has propelled artists like Kanye West to share their creative journey, resonating with Gen Z‘s desire for transparency and involvement. Brands that actively involve consumers in the making of products foster a deeper connection, aligning with Gen Z‘s values and contributing to their cultural credibility.

15

Impact on culture

IMAGE CREDIT: PASCALE ARNAUD

14

Gen Z‘s commitment to leaving a positive impact extends far beyond personal choices. It is a cultural catalyst, redefining the expectations of luxury brands. The emphasis on ethical consumerism has reshaped cultural norms, driving a collective desire for brands that align with social responsibility and fair practices.

The impact on culture is intertwined with the evolving concept of cultural credibility. Brands that fail to keep pace with cultural trends risk losing relevance with the next generation. Cultural credibility now hinges on reflecting personal values and seamlessly fitting into the diverse cultural tapestry that Gen Z embodies.

AMPLIFY

THE NEW WAVE OF LUXURY

Rise of Meta-Communities

IMAGE CREDIT:BLEACH LONDON VS HEAVN

16

Gen Z‘s ethical considerations have given rise to meta-communities – dynamic and fluid ecosystems that transcend traditional brand communities.

Online spaces have become platforms for nuanced discussions, where overlapping sub-communities coexist. This interconnected web of metacommunities represents a shift from singular consumer archetypes to a diverse network of fans, commentators, and trendsetters.

THE NEW WAVE OF LUXURY

19

IMAGE CREDIT: TAG HEUER

18

AMPLIFY

Evolving narratives for a new era IMAGE CREDIT: CHRISTIAN VIERIG/GETTY IMAGES

Luxury, once confined to rigid notions of timelessness and status, is experiencing a metamorphosis in the eyes of younger generations. Cultural democratisation has shattered the one-size-fits-all approach, ushering in an era where heritage brands must adapt to a diverse audience.

As heritage brands navigate this evolution, the key lies not just in breaking barriers but in crafting a narrative of consistent authenticity, fostering cohesion across generations, and leaving a lasting legacy. The extension of their story becomes a commitment to enduring values, creating a brand journey that transcends time and resonates with a diverse and discerning audience.

Heritage brands rediscovering relevance

21

To bridge the generational gap, heritage brands are adopting a forward-thinking approach, acknowledging that cultural credibility hinges on seamlessly aligning with personal values and integrating into the consumer‘s cultural realm. This adaptability allows heritage brands not only to rediscover but also redefine their relevance, forging authentic connections with a new generation of consumers.

IMAGE CREDIT: TELFAR X UGG

Heritage brands, navigating the ever-changing currents of consumer preferences, understand that cultural credibility is the lifeline to the next generation. In a rapidly evolving landscape, those failing to catch the cultural trends risk losing touch with younger demographics.

IMAGE CREDIT: JUERGEN TELLER, LOEWE

20

The next generation cares less about traditional markers and more about authenticity, inclusivity, and connection. Heritage brands, embracing this evolution, are redefining luxury narratives by breaking down old ideas of exclusivity. In this democratised landscape, cultural credibility becomes a dynamic force.

THE NEW WAVE OF LUXURY

4.

Co-authoring narratives through interactive engagement To capture the attention of Gen Z, heritage brands must embrace interactive engagement. Whether through gamification, augmented reality, or participatory campaigns, creating platforms for active involvement enhances the consumer‘s sense of ownership. Gen Z values brands that encourage their participation, fostering a dynamic relationship and ensuring the brand remains relevant in their ever-evolving digital landscape.

1.

Re-discover your narrative Heritage brands must shed the weight of tradition and reimagine themselves as the „new kid“ on the luxury block. Gen Z values authenticity and innovation, prompting heritage brands to reintroduce their stories from the beginning. By sharing the evolution of their brand journey, these labels can forge genuine connections and resonate with the modern consumer.

22

2.

IMAGE CREDIT: LOUIS VUITTON

23

Consumer-centric storytelling In a generation adept at digital storytelling, luxury brands should shift the spotlight onto Gen Z consumers. Crafting experiences where individuals become the protagonists allows for a personal integration of the brand into their narratives. By actively involving consumers in the brand story, heritage brands not only tap into Gen Z‘s storytelling prowess but also create meaningful connections.

IMAGE CREDIT: GUCCI COSMOS,2023

3.

IMAGE CREDIT: ALEXANDRA LEESE

Cultural innovation through blending digital and real world experiences Gen Z craves experiences that seamlessly blend the surreal with the tangible. Heritage brands should curate unique encounters that play with contrasts, intertwining digital and real-life elements. This approach aligns with Gen Z‘s appreciation for discovery, providing them with immersive, boundary-pushing experiences that transcend conventional luxury. This cultural innovation emphasises the fusion of artistry and craft, offering heritage brands a unique avenue to connect with the evolving cultural zeitgeist.

IMAGE CREDIT:_THISISCLAIRE IMAGE CREDIT: JACQUEMUS

BRIEFINGS

Joining the dots between people, brands + culture. www.weareamplify.com | @weareamplify 27 Paul Street, London, EC2A 4JU