Millennials

Engaging The Millennial: Augmented Reality And The Wired Generation

Filed under: Apparel, Gadgets, By Design, Architecture & Design

Millennials are defined as those born in the 1980s -- between 42 and 50 million (USA Today stats) who came of age with the new century, now between 18 and 28, and have also come of age truly wired, far more so than Boomers ( now reaching retirement age) or Gen Xers, ages 30-45. Millennials have grown up linked by BlackBerries, Androids, IPhones, computers, IPods, and video games. This is the generation of Wii, Facebook, Twitter, free downloads, access to just about everything. How do luxury brands engage these mindsets?

Thankfully, Augmented Reality, is proving to be a major force in this engagement. It is a process already in existence that combines two diverse dynamics: the perception of personal exclusivity and, a multi-dimensional, sensory experience. Augmented Reality, or AR, is a method for using a live direct or indirect view of a physical, real-world environment whose elements are augmented by computer-generated sensory input, like sound or graphics. It presents unique opportunities in terms of virtual fashion shows, digital flagship stores, 3D advertising campaigns, augmented reality Iphone applications, iPad magazines, Facebook live-streams and Twitter-based customer service. These are just a few examples of the long list of digital innovations that luxury brands have pioneered in 2010. And the field is growing. According to figures from ABI Research, the market for augmented reality (AR) in the US alone is expected to hit $350m in 2014, up from about $6m in 2008, or, around 50 times more from 2008 to 2014.

Augmented Reality is taking digital marketing strategies to a more sensory, immediate, attuned level -- perfect for Millenials, and others on either side of the generational divide. AR enables consumers to virtually try on jewelry, watches, clothing and handbags. The technology requires object recognition and computerization on the PCs, Macs or mobile devices as well as 3D renderings to superimpose images on the real world. What this process does is allow greater interactivity in the selling/buying process, creating an emotional connection between product needs and consumer desires. As a prime example, Tissot Reality: through its website Tissot lets users print and cut out a paper strip in order to try on virtual watches. Tissot showcased the application with an interactive Selfridges, London window display. This reportedly resulted in increasing in-store sales at Selfridges by 85%, while the YouTube views of the campaign have surpassed 70,000. See below, with the Tissot wrist watch AR video:

Tags: ABI Research, Adidas Originals Augmented Reality Game Pack, Audi Augmented Reality Car Calendar, Augmented Reality, Augmented Reality Airwalk Jim Shoe, Augmented reality and Millennials, Gucci Group Augmented Reality, Millennial Generation, Millennials, Pew Research Center Millennials, Ralph Lauren 4-D Fashion Event, Robert Polet, Social Media Millennials, Tissot, Tissot Augmented Reality, Tissot Reality, Toyota Auris virtual test drive, Toyota Scion Digital Campaign, Virtual Mirrors

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What's Happening In The Luxury Market? The Latest Research Provides Contradictory Clues

by Susan Kime (RSS feed) —

Filed under: Wealth, Luxury Shopping

I have written before on luxury trends derived from American Affluence Center's substantive research. Twice a year, this group publishes a detailed summary of the state of the luxury bandwidth. I discussed the Spring 2010's results, and below are those of Fall 2010. Not dismal, but still, fiscal security and happiness seem like distant visions. Here are a few highlights of the Fall 2010 Affluent Market Tracking Study, #18, as well as some controversial results from Unity Marketing, and Bain & Co. These results and trends are diverse, arguable, and contradictory, pretty much mirroring the state of our economy right now.

The American Affluence Center's report is based on the responses from 439 men and women who promptly responded to their survey and meet the minimum net worth requirement of $800,000. Their households have an average annual income of $290,000, an average net worth of $3.1 million, average investable assets of $1.7 million, and an average primary residence value of $1.1 million. The underlining below is mine, which may define an important future trend.

• The index for future business conditions is 22 points below the prior Spring survey index and 30 points below the Fall 2009 survey. Given the low rating of current business conditions, this future index is relatively negative, as it reflects an expectation of limited improvement from a poor starting point.

• The index for change in the stock market is 14 points below the prior Spring survey index and 33 points below the Fall 2009 survey. The current index reflects a 3 point decline in the "higher" rating and a 12 point increase in the "lower" rating. The "same" rating was 8 points lower. These ratings seem to suggest an expectation that the market will be largely unchanged 12 months out.

Tags: American Affluence reserach Center, Bain Co., Last Call brand, LUXURY GOODS WORLDWIDE MARKET STUDY, Luxury Marketing Council, luxury trends 2010, luxury trends 2011, Millennials, Neiman Marcus, Pam Danziger, Unity Marketing