I wrote this while at Bassett & Partners for MindSwarms (we shared an office and had a lot of interaction as both companies had the same founder).

1. Luxury for Millennials
A top line report on how Millennials view
Luxury differently from previous generations
June 2013

2. Purpose
• There is a lot of talk about how Millennials are
attitudinally different from their parents. So we
decided to ask Millennials how they viewed Luxury
differently from previous generations.
• The purpose of this document is to provide a top
line debrief on the Luxury & Millennials Study
recently conducted via MindSwarms.

3. To understand how Millennials define
Luxury versus previous generations.
Research Objective

4. • National US sample
• 11 states, 23 cities
• Ages 19-30
• Even Male/Female ratio
• HH income > national average
• 1/3rd had HH incomes > $100,000
• Mix of ethnicities
• Mix of socio-economic backgrounds
Target Audience

5. So what did we learn?

6. Millennials recognize two types of luxury
Modern, Millennial Luxury or
"My Luxury"
They think of this as inclusive personalized
experiences, delivered through high-tech
digital means that are constantly evolving.
Highest quality user experiences/
user interfaces are key.
Old-Fashioned Luxury or "True Luxury"
Millennials equate this with things like private
jets, mansions and Rolex watches, which
they acknowledge haven't changed in
generations.
Highest quality materials are key.

7. 1. From limited access to inclusive & always
available
2. From narrow definition to more expansive,
more sophisticated notion
3. From static, offline products to digitally-
connected, ever-evolving experiences
Technology (especially smartphones)
changed the Luxury game in 3 ways

8. “I think luxury still has the same general
meaning. Like people look at it for
something that makes them happy,
something that relaxes you but now it’s
a little more technological.”
- Alexandra R.
Technology (especially smartphones)
changed the Luxury game in 3 ways

9. “So my parent’s generation seem to feel
like if their house was the biggest on the
block, if their car was [the] newest
car...that was luxury for them. But our
generation is more like, if our technology
is the newest, our smartphone...we are
showing that off as luxury...it’s not so
much the houses anymore. It’s the
technology.” - Lisa T.
Technology (especially smartphones)
changed the Luxury game in 3 ways

10. “Every generation over time has
gotten progressively richer and more
sophisticated...for example my
parents’ parents may have thought
that...a standard car would have been
a luxury...But in this day and age, I
don’t believe things like a car, or...cell
phone (are) considered luxurious in
themselves...our (Millennials) definition
of luxury differs from previous
generations in that it’s (an) evolution.”
- Daniel D.
Technology (especially smartphones)
changed the Luxury game in 3 ways

11. Let’s dive into each of the ways
that luxury has evolved from
“True Luxury” to “My Luxury”...

12. • Millennials see the internet as the equalizer, where it’s not just the
1% who can gain access to Luxury goods
• Millennials describe Luxury as having access to anything they want
at their fingertips...smartphones have raised their expectations of
“Luxury on demand”
• Millennials say that many experiences that were once considered
Luxury are now attainable in a new way
‣ Town car services like Uber and spa days through Groupon
can be obtained seamlessly and effortlessly…where great
UX/UI can be a valuable brand equity
• An experiential and tech-centric definition of Luxury lends itself to
include others, often through social media
From limited access to
inclusive & always available

13. “Technology helps us get things, and
you can get luxurious things discounted
with Living Social, Groupon, these kinds
of websites. [...] So I think for me [luxury
is] accessible, it’s available.” - Darcy S.
From limited access to
inclusive & always available

14. From limited access to
inclusive & always available
“Feel like my definition of luxury has been
changed because of the ease of communication
that we have nowadays. Back then you kind of
heard stories in the newspaper about luxurious
items, maybe like a town car or products that
your favorite celebrity wore. Nowadays it’s a
matter of this...you look at something on Twitter
or Instagram and you kind of get a sense of what
people consider to be top items or top brand
clothing or devices.” - George A.

15. “Western brands used to be very exclusive to a
select few. Companies like Gucci, Christian Dior,
Louis Vuitton, used to design clothes, bags, leather
goods only for the elite class, and it was the norm for
this same class to dress in one brand from head to
toe. But now, so many fashion brands have merged,
and these fashion brands have redefined their
marketing strategy to reflect a luxurious appeal of the
mass class, such that these fashion brands are now
known as luxury fashion brands. Nowadays, it is
common to see a celebrity wearing jeans from H&M,
a shirt from Sala, earrings from Chanel, or a bag from
Louis Vuitton. Luxurious brands now are more
diversified and have become more reachable.”
- Mariane V.
From limited access to
inclusive & always available

16. “Luxury sort of has changed in that a lot of
things that are luxurious are more accessible.
For instance in the electronics world everyone
has an iPhone or an equivalent smartphone.
Those are affordable for a whole great mass of
people. Certain things that are ultra luxurious
always have been like a Rolls Royce that hasn't
changed. But in general things that are
considered in the past say like travel to
destinations a lot of that is more accessible to
more people now, to the masses.” - Andrew K.
From limited access to
inclusive & always available

17. “We live in a world now where it's easier to
travel than different generations. The cost of
flights isn't as much as different generations.
So, we're able to do different luxurious
things, eat out to luxurious restaurants in a
way that it's not such a rich and poor. It's
accessible to everyone.” - Darcy S.
From limited access to
inclusive & always available

18. • Luxury is no longer confined to specific status symbols like an
ultra-expensive car or a watch. In fact, Luxury has permeated
almost all facets of peoples’ lives - from luxury cupcakes to luxury
computers to luxury dog spas and everything else in-between.
• It’s as if the whole idea of what is Luxury has become more elastic
than in years past. Given this, Luxury is open to a broader
interpretation - i.e., Luxury is less grounded in concrete examples
of wealth, excess and status and more to do with the “luxification”
or making of experiences across a wide spectrum of interests and
activities more Luxurious.
From narrow definition to
more expansive, more sophisticated notion

19. “When they (other generations) think of
luxury (it is) like the core luxury brands such
as Gucci or Fendi or Channel. The way
we’re defining luxury in this generation...it’s
more of a broader scale. There’s more
brand name designers that are actually
available...such as going to Barney’s or
Bloomingdale’s.” - Tiffany C.
From narrow definition to
more expansive, more sophisticated notion

20. “And to me, luxury is a matter of a mix of
practicality and expense...I consider this
phone a little bit luxurious because I went a
little bit out of my budget to get it, but at the
same time I consider it very useful to myself.
Other people consider luxury to
be...something completely out of their budget.
Not necessarily as practical, but something
that is an unneeded expense, but they still
buy it.” - George A.
From narrow definition to
more expansive, more sophisticated notion

21. “My definition of luxury...is the idea of less is
more given that much more of the world has
been explored now and a lot of the things
that were luxurious in the past to earlier
generations are not really quite so much now.
So, a lot of it comes down to finding that kind
of Zen “less is more” attitude about finding
luxury in simple things and sustainability
(e.g., spa treatments that use basic
ingredients over chemicals and complex
concoctions).” - Jonathan M.
From narrow definition to
more expansive, more sophisticated notion

22. “Previous generations really defined luxury
by a price point. Something that was
expensive was luxurious whether it was a
watch or whether it was a vehicle or a
vacation or something like that. I think my
generation, which is definitely in kind of the
‘me generation’, I think really defines luxury
by experiences and how personalized
something is for us.” - Jesse G.
From narrow definition to
more expansive, more sophisticated notion

23. From static, offline products to
digitally connected, ever-evolving experiences
• Seamless, personalized experiences resonate powerfully
with Millennials (v off-the-grid analog products). No longer
about people conforming to luxury products and brands.
Now Luxury conforms to Millennials needs and desires.
• Smartphone integration is at the core of personalized
experiences, which allows Millennials to create bespoke
experiences for themselves that previous generations did not
engage in.
• Millennials see Luxury in experiences that minimize the
hassles and barriers in between them and the achievement
of what they want

24. “I think of luxury as more of a service-based
experience. It's more about the experience to me,
where I think in the past I just -- my perception of
what it might have been in the past is that it's
more regarding wealth and your home and how
much money you make. And while that's true,
you can make no money but still experience
luxury services such as going to a nightclub and
receiving bottle services. It's how the whole
experience is so much different than someone
who's coming in general admission. Or if you
happen to be invited on a private charter jet, even
though you can't afford it, you're still getting that
luxury experience. It's service-based, it's the
luxury to not be working all the time and to have
time to yourself and time to experience what you
want to experience.” - Cait M.
From static, offline products to
digitally connected, ever-evolving experiences

25. “I think my definition is a lot more
personalized...people are trying to
individualize themselves as opposed to
trying to be something that they
see...people want experiences that are
closer to them and whatever they feel they
need; and it's less so about wealth and
extravagance as opposed to something
that has meaning.” - Sharik A.
From static, offline products to
digitally connected, ever-evolving experiences

26. “My definition of luxury is having...a richness of
experience, so being able to find out something
very quickly. Like what concerts are going on,
being able to go there, being able to do
everything from your phone...not having to worry
about all the logistics, but being able to go do it
and share the experience with your friends. I
guess it differs from that of previous generations,
because there's not necessarily one material
good that is a status thing, like a Rolex...(that)
once you have it, you've made it. It's more...to
have a nice meal or go to a concert...where it's
seamless...to have the experience.” - Eugene P.
From static, offline products to
digitally connected, ever-evolving experiences

27. At the end of the day:
Millennials are investing heavily in
“making things their own” to have
enriched experiences.
• They’re investing time in personalizing their smartphones (e.g.,
individually customized interfaces and unique app configurations).
• This investment of time has created a strong bond with not only
their smartphones, but the enriched experiences that result from
being digitally connected to an ever-evolving experience.
• They’re invested emotionally in the positive feelings they get from
pampering themselves with luxurious features and experiences
across all aspects of their lives.

28. These enriched experiences are
so embedded into their lives
that Millennials now have an
“Expectation of Luxury”

29. “Well luxury twenty years ago is a
lot different than what it is
today...just everything from little
things inside of houses like
faucets and different technologies
as far as the types of TV's,
gaming systems, even cable
providers...now it's just a lot more
luxurious than more people had
back in the day.” - Corey L.
Luxury is not a nice to have, it’s
embedded and expected.

30. “The difference is (i.e., the difference between her
definition of luxury and luxury as defined by previous
generations), is that ease of technology and life...I
have a lot of luxuries that I take for granted, like I
expect my phone to be fast. I expect to have the
newest phone. I want cable to be free because I
stream all my TV on my iPad. Those are luxuries that I
take for granted...I can watch television wherever I am
or this phone tells me how to get somewhere with
directions...Also I just took Uber this week and I think
that is an ultimate, awesome luxury and I don't think
my parents would even really understand or be
interested in it...” - Vanessa L.
Luxury is not a nice to have, it’s
embedded and expected.

31. Conclusions & Implications
Despite high student debt, high unemployment rates and fewer
prospects to “one-up” their parents materially, Millennials are finding
luxury on their own terms and not feeling sorry for themselves.
In fact, Millennials think of themselves as living more luxurious lives
than their parents, largely based on the ease of everyday living
enhanced through technology.
While quality materials or ingredients are still important, things like
seamless digital experiences can dramatically enhance Millennials’
perception of a brand’s Luxury status.
The Internet of Things will create opportunities for brands (that have
historically not been digital) to forge new relationships with
Millennials.

32. Conclusions & Implications
This new version of luxury may seem at odds with the old version
but it isn’t: technology has added dimension to the concept of
Luxury, rather than completely redefining it.
Although Millennials acknowledge that many signifiers of Luxury
remain unchanged from the past, experiences form a bigger top-of-
mind part of Luxury for them than products.
If Luxury itself were a brand, it has been repositioned as more
malleable, where Millennials can play an active role in shaping it to
their liking (v simply acquiring it).
We have entered a new era, where the core tenets of Luxury have
shifted; this creates opportunities for brands to literally and
emotionally connect with Millennials in profoundly different ways
from past generations.

33. About MindSwarms
MindSwarms gathers video feedback from consumers via mobile
(and webcam) from all over the world. Fast.
Consumers are screened first, then qualified respondents are invited
to record their responses (asynchronously). Consumers are paid for
participating.
Responses to the study questions are viewable and shareable
online; and can be downloaded in Quicktime format for inclusion in
presentations, or to create curated videos.
Learn more at MindSwarms.com or blog.mindswarms.com.
Contact sales@mindswarms.com for inquiries.

34. About MindSwarms
Check out the video on our blog at blog.mindswarms.com

35. Thank You.