Features Product Features
May 11, 2022 •
All About Intention
Cultural and generational shifts shape the 2022 marketplace — and beyond
In a world crippled by pandemic, supply chain issues and rising inflation, to say nothing of geopolitical turmoil, the consumer marketplace has unsurprisingly reinterpreted its attitude toward discretionary purchases, specifically luxury items.
“Customers’ tastes and interests have changed. Their attitudes toward shopping have changed. People want to spend money on more meaningful products that resonate with their lifestyles, not just spending frivolously,” divulged Bernard Arnault, CEO for LVMH in Unity Marketing’s latest State of Luxury survey.
Post-pandemic consumers are characterized by new priorities, expectations and habits, the survey continued. Online shopping is up, nearly doubling its share of the luxury market, from 12% to 22%. Meanwhile, home luxuries were up 6% to 8% over 2019.
With the luxury jewelry segment enjoying a 7% uptick in spending over 2019, it’s safe to say that weddings are back. Regardless, continued Arnault, “there has been an awakening of a simpler life, so for some, over-consumption has lost its appeal.”
Meanwhile, by 2025, millennials (born 1981-1996) and Gen Z (born 1997-2012) will encompass some 70% of the personal luxury market, as well as exert a significant share across the entire marketplace. This consumer crop is intentional— as opposed to aspirational—and they tend to weigh every purchase, carefully considering whether a particular brand is one that they want to interact with and support.
Elements other than features, benefits and price drive these decisions; more and more, a brand’s purpose, mission and issue stance are deciding factors. Meanwhile, the number of choices in what to buy and how to buy them is exponentially greater now than even 10, 20 or 50 years ago. So the time is right to not only evaluate the current baby, bridal, office, home, and winter holiday markets — but how your own intentions define your own brand as the decade unfolds.