What Can Luxury Brands Learn From Gucci About Millennials?

In 2017, Gucci's sales grew by 44.6% over the previous year. And in the first quarter of 2018, the luxury brand posted nearly $2.2 billion in sales revenue, up 48.7% compared to the same period last year.

What’s behind Gucci’s blastoff? One reason is millennials.

As any experienced marketer will tell you, luxury branding requires a different approach than standard B2C efforts. We at IntraLink Global understand luxury brands and have done award-winning work in this space. To us, millennials are the clear access point: According to the Financial Times, millennials are “the world’s most powerful consumers.” While many other luxury brands have struggled to tap into the growing millennial demand, Gucci has found an eager and expanding base. According to Francois-Henri Pinault, CEO of Kering, Gucci's parent company, millennials and Gen Z account for nearly 50% of Gucci’s total sales.

According to Fast Company, Gucci CEO Marco Bizzarri's partnership with famed Harlem tailor Dapper Dan has helped transform the Gucci brand for a new generation of luxury consumers: the hip-hop crowd. Gucci's name has been used in lyrics by artists including Pusha T and 2 Chainz, which have likely influenced millennial demand.

 

 

However, there's more to Gucci’s success with millennials than simply knowing what’s "cool." To win with millennial consumers, brands need to understand what millennials value: personal satisfaction and purpose.

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