NFT is bringing GenZ into Luxury
As the managing director of Boston Consulting Group Sarah Willersdorf put it, Gen Z is an elusive mystery to most luxury brands yet they will hold a deep influence over how deep and fast changes evolve in the luxury market.
Presently the Gen Z holds just 4% of the real luxury market; however, brands must not underestimate them or do so to their own peril. They are expected to exert a powerful influence over the luxury market and their expectation is quite different from the generations before them.
Underestimating Gen Z as brands did with Millennials a decade ago could have a devastating effect on the brands themselves. Luxury brands need to stay ahead of the game.
The Exclusible platform understands the importance of helping luxury brands reach Gen Z. That is why Exclusible is coming up with the necessary tools for luxury brands to effectively cut across to their target audience about luxury NFTs.
The coming generational shift for luxury items consumption will elaborate the trends already driven by millennials and at the same time come up with different flavors. Gen Z is known for their unique set of values and behaviors as they buy more collaborations, which stands at 67% against the 50% average. They are led on by sustainability; they also engage the second-hand luxury market more. Sarah further points out Gen Z’s penchant for buying high-low and mixing-and-matching. All these are what luxury brands must understand about Gen Z to effectively get across to them about luxury NFTs.
Gen Z was born into advanced technology. They grew up facing smart devices and spend most of their time on the internet. As a result, they are greatly influenced by the internet.
Compared to millennials that still hold an affinity for print media, Gen Z is best reached through the internet. For example, 55% of Gen Z use at least 5 hours or more on their smart devices. Additionally, almost 90% of Gen Z see themselves as price-conscious when making a purchase. This is why luxury brands should place value and mobile outreach at the center of their strategic planning to reach Gen Z about luxury NFTs.
Defining value here doesn’t translate to cheap or inexpensive, it is offering more than just the normal routine of exchanging money for service or product. Just like millennials, experience also matters to Gen Z.
One of the ways of enticing Gen Z could be offering digital discounts to encourage them to interact with the luxury NFTs from luxury brands. Meanwhile, luxury brands should venture into social media channels like Snapchat, TikTok, Instagram, and WeChat to gain viral and organic awareness.
TikTok for example is one of the most engaging platforms in the social media world of Gen Z with about 1 billion users around the world, most of them young adults. That is a source of incredible engagement for brands among Gen Z. When you count the billions of devotees on other platforms too, you will realize the magnitude of these channels for reaching Gen Z. Hence, the reason we are seeing luxury brands like Balenciaga, Fendi, Louis Vuitton, etc. joining platforms like TikTok.
So, the big picture here for luxury brands is for them to entice Gen Z and capture their minds and hearts as well as earn their loyalty to luxury NFTs. To do that, they have to reach out to them exactly where they spend their time on the mobile space.
In terms of luxury NFTs, luxury brands need a platform like Exclusible that gives them the right toolset to achieve their aim of gaining Gen Z to their side.