PPage 62age 62 DCF and valuation pIndustry oaramevervieterws I Points of view from EY global sector Millennials and the luxury landscape and other industry professionals The program is centered on key elements of Luxury brands believe that a millennial who loves These store features were incorporated into the environmental performance and developing new buying a brand’s mini-me bags, makeup, perfume brand’s omni-channel sales strategy, creating an environmental management tools. When millennials and accessories now will love buying the same experience in which the consumer could order from can see that their interests are aligned with that of a brand’s full-sized handbags and shoes in the future. the website or tell a sales associate he or she would brand, they are more inclined to make a purchase As such, these lower-priced offerings provide brands like another size of an item or experience with knowing that it originated from causes that matter to an opportunity to form a relationship between the different potential lightings, all from the comfort of 9 them. brand and the millennial consumer, as opposed to a the dressing room. This forward-looking initiative certain product and the consumer. Brands that have contributed toward a 10% increase in sales of Introducing the brand through accessible price had success with this strategy have found the balance Minkoff’s Capsule collection to wholesalers this 13 points between offering items for younger shoppers that season. Despite the fact that millennials have not yet reached are expensive enough to maintain the brand’s allure Celebrity endorsements, social media, technology their full earning capabilities, they are willing to without diluting the luxury perception of the brand, and social responsibility initiatives are all important spend freely what they can now, with a hopeful future yet are still attainable given millennial consumers’ mediums through which luxury brands can reach and 11 of even higher spending. A proven successful method current price sensitivity. appeal to millennial consumers. In order to capture for labels to cater to this spending is to offer a wide millennial market share, successful brands will have range of products at varying price points. Iconic Providing a personalized experience through to innovate, grow and adapt with the technological fashion homses Domis Nmitton and :mrberrq hane both technology and social media revolutions that are shaping our 14 seen success in marketing a wide range of products Technology is another key method of reaching economic future. ranging in price from US$100 up to thousands of consumers. Creating an interactive, and digital 10 dollars. This pricing strategy can also be seen in experience helps to align millennials desires for lines of “mini-me” bags by labels, such as Céline, experiences with luxury brand shopping. Fashion Mulberry, Chanel, Philip Lim, Chloé, Stella McCartney, designer Rebecca Minkoff has succeeded in building Kate Spade and more. This fall, Hermès will feature a technology into the brand’s identity to attract 12 mini-me version of its iconic “Kelly” bag. consumers and encourage spending. The brand recently opened a new high-tech store in Manhattan that includes interactive mirrors and smart dressing rooms. 9 “Most Millennials Don’t Trust Big Luxury Brands and Brands are Taking 11 Notice,” The Fashion Law: The Leading Source for Fashion Law and the Lianna Brinded, “Luxury fashion houses are starting to crack the secret 13 Business of Fashion, 20 January 2016, The Fashion Law, 2016. to attracting millennials,” Business Insider, 26 December 2016, CNBC Ibid. 10 Gabrielle Rein, “Think Tank: Why Millennials Are the Future of Luxury,” LLC 2016. 14 Gabrielle Rein, “Think Tank: Why Millennials Are the Future of Luxury,” 12 Women’s Wear Daily, 25 April 2016 , Fairchild Publishing, LLC, a Kristina Gustafson, “Rebecca Minkoff rewriting the rules of fashion,” Women’s Wear Daily, 25 April 2016 , Fairchild Publishing, LLC, a subsidiary of Penske Business Media, LLC, 2016. CNBC News, 12 February 2016, CNBC LLC 2016. subsidiary of Penske Business Media, LLC, 2016. The luxury and cosmetics financial factbook 2016