[United Kingdom, 23/11/2022] Luxury brands expect millennial and Gen-Z shoppers to dominate the luxury market by 2025. This expectation comes as the industry witnesses an increase in demand and sales, surpassing $1 billion in 2021. As younger generations continue to drive the market, luxury brands must be prepared to meet their expectations.

Digital Transformation
To be successful, luxury brands should focus on digital transformation initiatives that create more personalized experiences for shoppers. For example, luxury companies can use predictive analytics and artificial intelligence to anticipate customer needs and suggest relevant product offerings. Additionally, luxury brands can leverage social media and influencer marketing to better target younger generations and reach new potential customers.

Customer-Centric Approach
Luxury brands need to stay flexible and understand the importance of a customer-centric approach and personalized online experiences. In addition, luxury needs to invest in being genuinely committed to sustainability, inclusion, and social responsibility.

Millennial Generation
In 2020, there were about 14.26 million millennials in the United Kingdom. This generation came after Generation X and is composed mainly of the early Gen Xers and baby boomers born after World War II. While the media sometimes portrays millennials negatively, they are also inclusive and confident people concerned for equal rights.

Buying Power of Millennials
A recent study has revealed that millennials are driving the purchasing of luxury items. These generations are tech-savvy digital natives with high disposable incomes. They have shown incredible buying power. Around 63 per cent of millennials and Gen Zers purchased luxury goods in the past twelve months.

Buying Attitudes
This situation sets millennials and Gen Zers apart from previous generations. Millennials and Gen Zers are more likely to buy luxury items for themselves to show status or reward their hard work. This trend reflects their values and attitudes, focusing on self-care and indulgence.

Luxury retailers need to keep up with their ever-evolving preferences and tastes. They should be aware of these generational differences when marketing products and services and ensure that their offerings meet the needs and expectations of millennials and Gen Zers.

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