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How Luxury Brands Are Courting Millennials
By: Fast Company
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If you’re poking around the Louis Vuitton website for a new purse or belt, you might stumble across something you’d never expect: a retro, arcade-style video game that infinitely scrolls in the style of Sonic the Hedgehog.

In Endless Runner, as the game is called, you’re a little red character running through the rough streets of New York in the 1980s after dark. Your goal is to hit the spacebar to jump over traffic cones, fire hydrants, and phone booths to score points. (You can play it for yourself for free here.) As you get sucked into this weird, lo-fi world full of 8-bit graphics, you can’t help but wonder: What is Louis Vuitton trying to do here? How did this 165-year-old luxury brand become the maker of both handcrafted leather satchels and video games?

In one sense, the answer to the question is simple. This game is inspired by Louis Vuitton’s Autumn Winter 2019 show, which was designed by Virgil Abloh, who became the brand’s head of menswear in March of 2018. Abloh said his collection (which I reviewed in March 2019) was an homage to Michael Jackson and, more broadly, 1980s nostalgia. Rather than making yet another arty marketing video with high production values, Louis Vuitton decided to go out on a limb by dropping a video game instead.

But it also plays into Louis Vuitton’s concerted effort to win over millennial consumers, who are currently obsessed with 1980s and 1990s paraphernalia, decking themselves out in Reebok Classics sneakers, Champion T-shirts, and Fila fanny packs.

In fact, the entire luxury industry is duking it out to win over the hearts, minds, and dollars of the under-35 set. Millennials and Gen Z are expected to account for 45% of all luxury spending by 2025, so it makes sense to earn their loyalty when they’re young.  Right now, it looks like Gucci is slightly ahead of its competitors: It generates more than half of its sales from this demographic, while about a third of Louis Vuitton’s sales come from millennials.

Gucci’s success is thanks, in part, to Alessandro Michele, who became the brand’s creative director in 2015, bringing a fresh, playful aesthetic to the brand. Michele often pokes fun at the brand’s over-the-top logos of the past. He has even mimicked counterfeiters’ tendency to create fake products with the brand’s name misspelled by creating an entire line of “Guccy” products. It is also the result of CEO Marco Bizzari’s willingness to embrace technology in ways that luxury brands have not done in the past. It was among the first of the luxury brands to partner with Instagram influencers (although other labels have been quick to follow) and now outfits online avatars with the latest Gucci collections.

Gucci has pushed the rest of the industry to rethink its strategies. Hermès, one of the most exclusive of the luxury brands, has found creative ways to speak to young consumers: It now has a whimsical podcast where different people involved with the brand tell stories, and it even showed up at South by Southwest with a laundromat where visitors could update their vintage Hermès scarves for free. Chanel, which has been very slow to adapt to modern consumers (it does not even have an e-commerce site), has announced it will create a Netflix documentary to give viewers a closer look inside the company.

For Louis Vuitton, the strategy for winning over young consumers includes bringing on Abloh, who is a household name among millennials and Gen Z. Part of the reason for Abloh’s appeal is that he is one of the most inclusive and multidisciplinary designers of our time, which is particularly exciting to these younger generations that don’t like labels. He refuses to be limited by a particular medium or by whether a brand is considered high-end or low-end. He’s recently created plastic Evian bottles and limited-edition rosé champagne bottles for Moët & Chandon, as well as pieces for Ikea and pieces for Jimmy Choo.

The brand has also been investing in Instagrammable pop-up retail experiences. At Louis Vuitton’s newest temporary store, which opened July 12 on the Lower East Side of Manhattan, everything from the exterior to the mannequins to the furniture to the walls and ceiling has been carefully hand-painted green. The only non-green items are the clothes, shoes, and accessories for sale. There did not seem to be any underlying reason the brand went with green, other that it was weird and would prompt people to take selfies. An earlier Louis Vuitton pop-up in Chicago featured an orange theme.




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About the Author
This article was published on Fast Company. A link to the original piece appears after the post. www.fastcompany.com
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