|
 Items like his Diane Mini Shoulder Bag, which retails for $1,495,
and Wu's Camel Hair Capelet Trench Coat at $3,995 have always been
well out of reach for most of the 32-year-old's fellow millennials.
The generation of those 18-35 has been hard-hit by the U.S. economy.
Many are struggling with too much debt to spend heartily. But there
may be a turnaround as the 75 million millennials pivot their tastes
from mass-market retailers like Aeropostale to upscale haute
couture, at least among older millennials.
According to Forrester Data, a division of Forrester Research Inc,
older millennials (ages 27-35) started to splurge in 2015, suddenly
spending twice as much as younger millennials (ages 18-26). The two
groups spent evenly on purchases in 2014.
The median amount spent on the most recent luxury good item
purchased by older millennials was $180 in early 2015. Younger ones
spent $91 on their most recent purchase.
That tops Gen Xers, also beleaguered by financial woes, who spent a
median $150, but hardly competes with the richer, more settled baby
boomers (50-59) who spent a strong $250.
Wu finds that the trend driving new spending among his millennial
customers is that they are now interested in long-lasting quality
items, not just what is cheap and expedient. "We are not so
disposable anymore, and I think that mirrors how I design clothes,"
Wu says.
FOCUS THOSE MINDS
Designers are increasing their social media footprint to grab the
attention of millennials bombarded by their peers with pictures,
video, news, music and messages.
For instance, at New York Fashion Week, which runs Sept. 10-17,
veteran designer Ralph Lauren was one of many using the new
livestream mobile app Periscope to broadcast runway shows. Periscope
has 10 million users.
"Periscope is changing the way fashion fans consume and experience
fashion, essentially democratizing it for everyone," says Rachel
Dodes, head of fashion partnerships at Twitter Inc. "The two-way
nature of Periscope allows people to engage in a way that wasn't
possible before, and as we've seen this fashion week, the community
is embracing it."
[to top of second column] |
Through the last day of the fashion event, there were 97 Periscope
livestreams coming from designers, according to Socialbakers, a
social media marketing consultant.
The goal for attracting buyers? "Making them feel like they're at
the show, just like I'm at the show," says Jaclyn Jones, an editor
at fashion trend forecasting firm WGSN.
Designers make it easy for millennials to tap into social media for
instant feedback. Almost 70 percent of millennials check in with
peers on social media before making a purchase, according to
strategic retail advisory firm HRC Advisory.
Social media sites like Instagram, Facebook and Pinterest all play a
role in getting the thumbs up. To make sure customers can connect at
the point of sale, retailers are installing Wi-Fi and charging
stations in their stores, says HRC Advisory's president Farla Efros.
That will keep millennials browsing - and buying - in style.
(This version of the story corrects penultimate paragraph to
president instead of chief operating officer)
(Additional reporting by Elly Park; Editing by Beth Pinsker, Lauren
Young and Phil Berlowitz)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
