Ethical consumer or transient responsibility? This is a question of high relevance for luxury brands interested in the millennial consumer, a market segment that embodies $2.5 trillion in spending power. As such, for a luxury brand to remain relevant, understanding what drives this audience and more important, how to engage with them has become critical.
Recent research shows that 70 percent of millennials are willing to spend more time and money with luxury brands that support causes they care about, causes are of social and environmental nature, that indirectly impact luxury brands, supply chains and operations. However, when the right decisions are made, luxury brands maximise social impact and reduce environmental footprint, directions that strike a sensible chord with the millennial consumer of personal luxury goods.
According to Hartman Group’s Sustainability report for 2017, almost 90 percent of adults state that sustainability-related concerns impact the way they perceive values. Indirectly, the value perception affects their attitudes and actions towards specific brands of personal luxury goods.
Nowadays, the idea of ‘sustainable’ has become a holistic concept that encompasses interconnected sets of concerns related not only to animal welfare, sustainable materials and supply chains but also to gender equality, diversity and philanthropy. Last year alone saw more luxury brands than even, pledged to go fur-free under the pressure of ethical consumer. The phenomenon has a global coverage, set against a general feeling of uncertainty and insecurity.
In 2017, a Global Impact study has revealed that the best way to neutralize feelings of anxiety and insecurity is to be united by a belief in a world of collaboration, unrestricted by geographical borders and the cause for a sustainable world has the power of doing just that, in the eyes of an ethical consumer.
Moreover, 90 percent of tomorrows’ future leaders have stated that creating a better world will rely on increased levels of empathy and a global culture based on collaboration. To them, globalisation has to be redefined to a concept of ‘personal globalization’. In that context, the world consists of limitless cross-border movement and unhindered digital communication, united by a common goal, that of protecting the environment and its resources, preserving our planet.
The results of the research explain why millennials are turning away from the idea of governments and nation-states. Millennials believe that those institutions no longer reflect their interests, scepticism reflected in their consumption of personal luxury goods. More than two-thirds believe that shaping the future is up to them as individuals, rather than the brands they used to consume, says the Global Impact report.
Interested in the millennial consumer segment of personal luxury goods know that they’re not driven by a transient state of mind but this generation is guided by ethics, sustainability, and collaboration goals, all for the benefit of the planet. Just listen to what they have to say.