Luxury consumers seek lasting memories and creative experiences

Luxury brands can’t just rely on the appeal of their beautiful products, they need to “innovate and entertain or get left behind”, a new study from media agency Havas Media has claimed.

To reach that conclusion Havas Media Lux, working with Evolve OOH, surveyed 200-250 luxury consumers per market in the UK, China, and the Middle East. Each respondent had a personal income of £250,000 per annum or more, and/or over £1 million in liquid assets.

We’re told that the ultra-high net worth individuals (UHNWIs) “increasingly expect brands to create lasting memories and connect to a wider community. Luxury brands will need to undertake rich storytelling, entertainment, rapid innovation and creativity, or risk future growth”.

A key finding was also the emergence of the ‘Memory Makers’, a new type of such shopper representing one in five UHNWIs in the UK. They’re mainly Gen X and millennials and “are 180% more likely to view luxury as the pursuit of meaningful experiences rather than showcasing wealth or prestige”.  

They’re different from many other more traditional luxury shoppers in that their motivations for buying these products aren’t financial success or status. Some 41% cite their top motivation being the desire to create unforgettable memories.

In the week that Kering reported a tough quarter, that last point maybe be a clue to part of the luxury downturn as their idea of luxury isn’t about accumulating more ‘stuff’. These new consumers predominantly seek travel and hospitality experiences, with 70% having invested in these over the past year. 

It also perhaps explains why the watch market has remained — relatively — robust as they also want mementos that can be shared across generations, such as watches (which one quarter plan to buy as their next purchase). 

But as well as this group, the study shows “all luxury shoppers now seek meaningful experiences throughout the customer journey… creativity and immersion are now expected in luxury ad campaigns, with 44% drawn to brands showcasing exceptional creativity and 84% viewing luxury ads as a form of art”.  

This is great news for some brands that have embraced that in their campaigns, but there’s less good news for those that still rely on big names to promote their labels. Some 36% of luxury shoppers “are now bored by global celebrities and influencers featured in traditional luxury marketing. Brands wishing to reach luxury audiences should therefore double down on storytelling, creativity and innovation”. 

Cherry Collins, Strategy Partner, Havas Media said: “Following emotive revenge spending post-pandemic, we’re seeing the ‘Memory Makers’ simplifying and redefining their values. The ever-changing socio-economic landscape has shifted the focus for ‘The Memory Makers’ from frequently purchasing luxury pieces towards the search for deeper meaning, fulfilment and joy.”

There was more interesting data uncovered in the survey. In the UK, it found that 48% have purchased home & interiors in the past year; 40% are spending more than prior to Covid; and 15% purchase something they like there and then.

In China, 85% have purchased skincare in the past year, 52% are spending more now than prior to Covid (perhaps a surprise given part of the luxury downturn being laid at China’s door); 67% said they’re not affected by global instability; 27% buy something they like there and then; 24% say money is no object for the right product; and 50% more likely to say they like to treat themselves to the finer things in life compared to the other markets surveyed.

Finally, in the Middle East, 57% have purchased travel and hospitality in the past year; 58% are spending more than pre-Covid; 21% buy something they like there and then; and 17% like to conduct in-depth research before buying a luxury product.