Generation Z Report
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Generation Z Report

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Gen Z-Luxury Interactive May 2011

Gen Z-Luxury Interactive May 2011

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  • This is a very insightful presentation about Generation Z. I would encourage you to check out our blog as we aspire to engage Generation Z through sports, entertainment and innovation. http://gnrtnz.wordpress.com/ Best of luck and would be happy to be a resource for any questions you may have. Best, Evan Co-Founder, www.gnrtnZ.com
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Generation Z Report Generation Z Report Presentation Transcript

  • MBA in INTERNATIONAL LUXURY BRAND MANAGEMENT Generation Z – The Future Luxury Consumer1 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
  • Generation Z – The Future Luxury Consumer INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYSQUICK TIP 1 1 NAVIGATION DASHBOARD Click & go straight to that chapter 2 2 SLIDE LINK Click & go straight to that slide 3 3 RELATED LINK / EXAMPLE 2 4 4 RELATED VIDEO / EXAMPLE1 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
  • Generation Z – The Future Luxury Consumer INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYSCONTENT 4-5 3 6 3 7 3 8-10 3 3 17 11 12 13-16 32 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
  • Generation Z – The Future Luxury Consumer INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYSINTRODUCTION GENERATION Z WHO? NUMBERS: Tweens Age 8-12 Teens Age 13-19 WHERE? They represent 21% of Global India has 287 million China has 215 million Population US has 45 million WHAT & HOW? Digital natives ≈ Connected 24/7 63% are online daily Tech savvy ≈ Socially active 73% are on a social network Consume content Spent $170 billion in 2010 in the US alone KEYWORDS to describe behavior: socialize, search, view, review, like, link, tag, comment, share, post, create, co-create, word-of-mouse, shop on-line, play, discover, mobile. 43 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
  • Generation Z – The Future Luxury Consumer INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYSCHARACTERISTICS GET TO KNOW THEM BETTER GEN Z are highly participative and opinionated , they are encouraged to speak out from a young age. They like being involved in what is being said online and consumers from this generation value each others opinion. Take note of the rise in non traditional brand ambassadors and influencers ie. Tavi Gevinson, Kristin Prim and Charlie Lyne. 54 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
  • Generation Z – The Future Luxury Consumer INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYSCHARACTERISTICS GET TO KNOW THEM BETTER These teens are brand driven and WORD ON THE STREET by GEN Z: not product driven and they are so “Don‟t tell me who I am‟‟ to such an extent that even „‟I know what the brand … is all about counterfeits get introduced to their better than sales-staff does‟‟ shopping or lifestyle patterns but „‟I can‟t afford it now but I have no not under a cloak of anonymity but problem sporting a replica‟‟ rather with a playful irony meant to „‟I‟m having fun with it‟‟ enhance the emotional „‟Once I‟ll afford it I‟ll buy the original‟‟ exhibitionism and democratic self- „‟I know what cool is‟‟ empowerment they live in. “Mirrors are pretty introspective too” 65 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
  • Generation Z – The Future Luxury Consumer INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYSCHARACTERISTICS CONSUMER CATEGORIES FOR FEW Connaisseurs Luxury brands today are speaking to all Status seekers • Money • Most expensive • Education four current categories of prestige • Want the world to know • Discreet consumers at the same time…that are the connoisseurs, the status seekers, the conformity seekers, and the pleasure PUBLIC PRIVATE DISCREET seekers . The %‟s assigned to eachVISIBLE RITUAL RITUAL category are based on a survey carried by SOFRES SECODIP - the survey wasConformity Seekers Pleasure Seekers carried on a sample of 40,000 luxury• Need for status • Sporadic purchaser consumers. As u can see a higher• No money • For one self or friends percentage of current luxury consumers• Big Logo fall on the left hand side of the grid. ACCESSIBLE TO MANY Source: SOFRES SECODIP 76 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
  • Generation Z – The Future Luxury Consumer INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYSCHARACTERISTICS AXIS CHANGE HAVE We believe when GEN Zers become Status seekers Connoisseur • Ethos driven luxury consumers there is firstly going to • Most expensive • Want the world to know • Money be a change in the parameters that define • Education these categories „for a few‟ and • Discreet „accessible to many‟ will be replaced by „have‟ and „have not‟s‟ that is in terms ofHIGH NEED FOR LOW NEED FOR education and money. Then „public‟ and STATUS STATUS „private ritual‟ will be replaced by „need‟ and „no need‟ for status.Conformity Seekers Emotion Seekers• Need for status • Playful• No money • „‟I know my place in society‟‟• Big Logo HAVE NOT Source: SOFRES SECODIP 87 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
  • Generation Z – The Future Luxury Consumer INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYSCHARACTERISTICS GEN Z AS CONSUMERS HAVE Secondly there will be a shift in the Status seekers Connoisseur • Ethos driven percentage weight of these • Most expensive • Want the world to know • Money categories…higher percentage of these • Education consumers will be on the right hand side • Discreet of the grid as compared to the left side. GEN ZHIGH NEED FOR LOW NEED FOR STATUS STATUS GEN ZConformity Seekers Emotion Seekers• Need for status • Playful• No money • „‟I know my place in society‟‟• Big Logo HAVE NOT Source: SOFRES SECODIP 98
  • Generation Z – The Future Luxury Consumer INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYSCHARACTERISTICS GEN Z AS CONSUMERS HAVE Gen Z consumers will make up a high Status seekers Connoisseur • Ethos driven percentage of emotion seekers. • Most expensive • Want the world to know • Money The reasons for this are one due their • Education individuality they know what their place in • Discreet society is so don‟t need status. Secondly GEN Z as they like challenging brands and theHIGH NEED FOR LOW NEED FOR norm, mixing real with fake, consuming STATUS STATUS GEN Z luxury is playful and fun for themConformity Seekers Emotion Seekers• Need for status • Playful• No money • „‟I know my place in society‟‟• Big Logo HAVE NOT Source: SOFRES SECODIP 109
  • Generation Z – The Future Luxury Consumer INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYSCHARACTERISTICS GEN Z AS CONSUMERS HAVE We will also see an increase in the Status seekers Connoisseur • Ethos driven percentage of connoisseurs as GEN Zers • Most expensive • Want the world to know • Money are opinionated and educated, but for • Education them it will be about real value and ethics • Discreet GEN ZHIGH NEED FOR LOW NEED FOR STATUS STATUS GEN ZConformity Seekers Emotion Seekers• Need for status • Playful• No money • „‟I know my place in society‟‟• Big Logo HAVE NOT Source: SOFRES SECODIP 1110 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
  • Generation Z – The Future Luxury Consumer INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYSSHIFT BRAND MONOLOGUE Luxury brands have been making the old categories of consumers dream through the top down levers of Brand monologue, the product, store experience & impactful staff that leads to sustainable customer relationships and ultimately entrenches the brands markets position. However due to Generation Z there is a shift from top down control and communication to 360 degree 1-on-1 customer management. Top Down Approach 1211 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
  • Generation Z – The Future Luxury Consumer INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYSSHIFT THE STARTING POINT The consumers and customers are at the center of the new brand management paradigm. CONSU Because of technology and social MER platforms they are participating in brand dialogues not only with brands but also amongst consumers themselves and between bloggers or other stakeholders. 1312 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
  • Generation Z – The Future Luxury Consumer INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYSSHIFT 360º Through this they are empowered and are PREEMPTIVE DISTRIBUTION co-creating brand meaning. CO-CREATE BRAND MEANING The next step in brand management is EMPOWERMENT pre-emptive distribution where brand are giving the consumers what they desire, CONSU where , when and how often they want it. MER For e.g. Kolhl‟s in the USA do this by providing convenience to the time starved working mom, through the location of their stores and the merchandising mix that they offer 1413 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
  • Generation Z – The Future Luxury Consumer INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYSSHIFT 360º VIRTUAL & Next comes neurological stimulation PREEMPTIVE DISTRIBUTION REAL through virtual and real experiences with EXPERIENCE CO-CREATE which brands make a meaningful BRAND MEANING connection with the consumer. EMPOWERMENT For e.g. Abercombie and Fitch provide a club like lively atmosphere in their stores CONSU where are all the sense are stimulated by MER the music, dim lighting, smell and store staff dancing. All of this leading to a unique shopping experience. 1514 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
  • Generation Z – The Future Luxury Consumer INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYSSHIFT 360º VIRTUAL & Furthermore u have user reviews and PREEMPTIVE DISTRIBUTION REAL opinion leaders…earlier consumers use EXPERIENCE CO-CREATE to be influenced by the view of fashion BRAND MEANING writers and editorial in magazines. Now EMPOWERMENT consumers trust the opinions of other consumers like them. CONSU MER USER REVIEWS & „‟OPINION LEADERS‟‟ 1615 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
  • Generation Z – The Future Luxury Consumer INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYSSHIFT 360º VIRTUAL & Last but not least the importance of staff PREEMPTIVE DISTRIBUTION REAL is critical in closing an experience circle EXPERIENCE CO-CREATE which encompasses on and off line BRAND MEANING environments, storytelling and dialogues, EMPOWERMENT legitimacy and cool-factor all of these combined lead to sustainable customer CONSU relationships that ultimately entrenches MER the brands markets position. USER HUMAN TOUCH REVIEWS ONLINE/OFFLINE & „‟OPINION LEADERS‟‟ Sustained Customer Relationship Entrenched Market Positioning €€€ 1716 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
  • Generation Z – The Future Luxury Consumer INDEX INTRODUCTION CHARACTERISTICS SHIFT TAKEAWAYSTAKEAWAYS THE POINT IS Gen Zers are DIGITAL NATIVES so they do everything online. They like live streaming their life experiences . They don‟t mind sharing pv info as long as they are getting something in return like content. They have DIFFERENT MOTIVATIONS for engaging with brands Finally there is a SHIFT IN BRAND MANAGEMENT from top down control and communication to a 360 degree consumer engagement approach 1817 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
  • Generation Z – The Future Luxury Consumer REFERENCESLINKS REFERENCES 1.The New Rules of Retail by Robin Lewis and Michael Dart, 2010 2.Make Way for Generation Z: Marketing to Today‟s Tweens and Teens, Euromonitor International: Strategy Briefing, February 2011 3.The F-Factor, www.trendwatching.com, May 2011 4.“Building Great Brands in the Digital Age: Guidelines for Developing Winning Strategies”, Nielsen, September 2009 5.Social Media and Mobile Internet Use Among Teens and Young Adults, Pew Internet and American Life Project, by Amanda Lenhart, Kristen Purcell, Aaron Smith, and Kathryn Zickuhr, Feb 3, 2010 6.How Teens Use Media, a Nielsen report on the myths and realities of teen media trends, June 2009 7.Introducing Generation C: The Connected Collective Consumer, Nielsenwire, October 27, 2010 8.Consumer Decision Journey, McKinsey Quarterly, by David Court, Dave Elzinga, Susan Mulder, and Ole Jørgen Vetvik, July 2009 9.Spotlight on Social Media and the New Rules of Branding, Harvard Business Review, December 2010 10.The Rise of Generation C, Strategy and Business, by Roman Friedrich Michael, and Alex Koster, February 22, 2011, Spring 2011, Issue 62 11.Cultural Anthropology Advances in Brand Management, ESSEC MBA International Luxury Brand Management lecture, Simon Nyeck, April 26, 2011 12.Consumers of Luxury: What Exactly Are We Buying, ESSEC MBA International Luxury Brand Management lecture, Thomas Morel, February 10, 2011 13.CourtingTeens the Next Wave of Customers, JCK, March 2008 14.What Teens Want, Buzz Marketing Group, by Tina Wells, July 29, 2008 15.No Escape: Marketing to Kids in Digital Age, Multinational Monitor, by Jeff Chester and Kathryn Montgomery, July/August 2008, Volume 30 No. 1 16.Turning “Like” to “Buy”: Social Media Emerges as a Commerce Channel, Booz & Company, Matt Anderson, Joe Sims, Jerell Price, Jennifer Brusa, April 17, 2001 Coordinating Prof. – Simon Nyeck ( Academic Director ESSEC MBA in International Luxury Brand Management ) 1918 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO
  • Generation Z – The Future Luxury Consumer THANK YOU!CONTACT If you have any comments or questions and you would like to learn more about our research, findings and implications or if you simply want to talk to us – get in touch, we look forward to hearing from you. Octavian Cornea Oriana Khatso Shivan Mehra Lidija Pehak Kolenko 2018 CORNEA – KHATSO – MEHRA – PEHAK KOLENKO