The Next Generation of Luxury Shoppers: How Brands Can Embrace Change

The relationship between brands and consumers is constantly evolving in our digital age – being reshaped by the availability of technologies like Augmented Reality (AR) and Generative AI at our fingertips. Luxury retail, specifically, faces new complexities in engaging with younger generations that have grown up fully immersed in technology and social media. These changes require fresh thinking around marketing strategies for engaging and converting the next generation of luxury buyers.

This was one of the key topics of a new study by Ipsos, conducted on behalf of Snapchat, providing key insights into the evolving world of luxury retail and the digital platform’s role. The research surveyed over 14,000 online participants aged 13-44 across six international markets (UK, US, France, Italy, Saudi Arabia and UAE), including over 3,600 identified as current buyers of luxury shoppers. 

The study reveals both the presence of younger demographics within the luxury market, but also their differing attitudes, behaviours and expectations of brands in this market. In particular how the notion of exclusivity is changing and the value younger shoppers place in luxury is less about exhibitionism, but more about the individual connection and expression these brands offer. The study also highlights the importance of attracting these consumers early, with 66% of luxury shoppers agreeing that they are more loyal to luxury brands when they discover them at a younger age. 

Another key shift is the rising role of digital, even for a historically in-store category like luxury – with 68% of luxury shoppers agreeing that digital tools like AR can bring the in-store experience to online shopping. Furthermore, 64% of luxury shoppers report that they use social platforms and their features to help with their purchase consideration, and 69% expect more luxury brands to include AR as part of their shopping experience. Meaning these digital ways to engage with brands and their products are seemingly becoming a must-have for brands wanting to engage the next generation. 

Following the release of the report earlier this year, Dan Wong-Chi-Man, Global Service Line Leader – Audience Measurement at Ipsos, and Tim Bond, Associate Director – Media Development at Ipsos, have taken part in a number of in-person events to share and discuss the key themes with key stakeholders within Luxury brands. 

As Dan Wong-Chi-Man summarises: “Younger generations have grown up seamlessly blending digital and real-world experiences in all aspects of their life. Luxury brands need to embrace innovative tools like AR to remain relevant to this mobile-first generation who expect more personalised and engaging brand interactions.”

With online touchpoints key throughout the path-to-purchase, these digital channels have the power to shape brand perceptions and drive engagement. As Tim Bond explains: “Channels like Snapchat can be a powerful presence for luxury brands throughout the path to purchase, having the power to shape brand perceptions and drive engagement. Utilising the digital formats these platforms can offer helps brands to inspire and engage the next generation of loyal luxury customers.” 

As the world of luxury continues to evolve, expect leading brands to rethink their marketing mix to embrace digital innovation. Branded digital formats, personalisation and social commerce will become key strategies for winning over the next generation of luxury buyers in 2024 and beyond. Those slow to adapt online risk losing relevance with younger, highly engaged luxury shoppers.

The full research report provides further insights on new luxury shopper attitudes, digital behaviours and recommendations for connecting with youth. 

By Dan Wong-Chi-Man, Global Service Line Leader – Audience Measurement at Ipsos, and Tim Bond, Associate Director – Media Development at Ipsos

For more information, contact Tim Bond at [email protected]