time ultimate luxury white paper
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DESCRIPTIONLuxury of Time: A Generational PerspectiveMoney is fungible; almost anyone can get more of it if they work longer, harder, smarter. Time, on the other hand, is fixed. No one, no matter how much money he or she has, can get one second more of it. That's why how one spends his or her money is far more important than how one spends his or her time. Time is the ultimate luxury because it is the only truly limited resource one has.While time is the ultimate luxury for everyone, how people perceive time is relative. For a luxury marketer, the number one variable in how the target customer perceives time is age. Young people have a much different time perspective than those who are older.In today's luxury market, an examination of the three adult generations -- Millennials, GenXers, and Baby Boomers -- provides marketers with insight into how to use time to reach the target audience.
- 1. Unity Marketing Luxury White PaperByPam Danziger
2. Money is fungible; almost anyone can work longer,harder, smarter and make more of it. So money isnt somuch a luxury after all, simply a reward. Time, on the other hand, is fixed. No one, no matterTi h h h d i fi d Nhow much money he or she has, can get one secondmore of it.it Thats why how one spends his or her time is far moreimportant than how one spends his or her money. Time p pyis the ultimate luxury because it is the only truly limitedresource one has. Unity Marketing, 2012 5/19/2012 2 3. Puts the emphasis of marketing luxurybrands toward the experience, ratherthan the material thing. Raises the importance of service in theluxury business. For example, thebusinessexampleinternet is such an important means toservice affluent luxury consumersbecause it is respectful their time. Changes the whole marketing equationfor travel and hospitality marketers whoessentially sell services that enhance theindividuals personal experience oftime. Unity Marketing, 2012 5/19/2012 3 4. These heads of luxury businesses find the ultimate expression of luxuryin the quality of how they spend their time, not in material goods. "Its doing what I want when I want. Luxury is not material, says Jean-MarcJacot, the chief executive of Swiss luxury watchmaker Parmigiani Fleurier. "For sanitys sake, people should not give up their vacations ... I think thatpsychologically, it is a nice little reset button for everyone, says Jennifereveryone,"Hyman, co-founder and CEO of designer gown rental service Rent the Runway. "(Luxury is) products that are special, that are differentiated, that make me feeltaken care of and pampered. To me, luxury is time, says Steve Sadove, CEO ofSaks Inc . "For me, luxury is a good hamburger and time with my family. I would describeluxury as something that puts a little spring in your step and something thatmakes you feel just a little bit better about yourself," says Shawn Kravetz,president of Esplanade Capital. "E"Everything i much f t W are connected 24 hthi is h faster. Wet dhours a d I thi k th t tiday. think that timereally is a big luxury, especially for people like me," says Federico Marchetti ,CEO of Yoox online fashion retailer. Unity Marketing, 2012 5/19/20124 5. While time is the ultimate luxury for everyone,how people perceive time is relative. For a luxurymarketer, the number one variable in how thetarget customer perceives time is age Youngpeople have a much different time perspectivethan those who are older. olderIn todays market, an examination of the threeadult generations Millennials, GenXers and BabyBoomers provides marketers with insight intohow to use time to reach the target audience. Unity Marketing, 2012 5/19/20125 6. Three adultSize of Generationsgenerations areIn Millionsin the luxuryconsumer market 8071 76today. Each 70generation values 604550the lth luxury off 40time, but each in 30a unique andq 2010special way. 0 Millennials (1980- GenXer (1965- Baby Boomer 2000)1979) (1946-1964) Unity Marketing, 2012 5/19/2012 6 7. Boomers aged 48-66years Senior executives andS dmanagers, the OldGuard Highly dHi hl educated, more t dspare time, fewerfamily obligations 76 million strong largest generation Boomers totally unlikeany generation before "50 is the new 30" "60 is the new 40" Unity Marketing, 2012 5/19/2012 7 8. GenXers aged 33-47years Middle managers andMiddldfast-tracking highperformers Even more highlyeducated than boomers,but challenged bydemands of a growingfamily Last mass-mediageneration GenXers will never fill thevoid left by boomers inworkplace and consumerculture Unity Marketing, 2012 5/19/2012 8 9. Millennials aged 12-32years Almost as large asBoomers They are thebabies of Baby Boomers Entry level managers,professionals Even more highlyeducated than GenXers& Boomers but Boomers,financially burdenedwith education debt First truly internet-internetconnected, niche mediageneration Unity Marketing, 2012 5/19/2012 9 10. Baby Boomers look at time in terms of an 80 year lifespan What do I want to do with the 20 or 30 years left of my life? Whatlife? Day-to-day time pressures take back seat Health challenges, Quality of Life challenges Ge e s veGenXers live a highly pressured 24/7 g y p essu ed /7 How can I make the most of my 7 day a week, 24 hour day, when Ineed 8 days, 36 hours each to do it all? GenXers feel family pressures, responsibilities Millennials have got plenty of time, but value seeing how theMill i l h t l t f ti b t li h thother half lives Most millennials grew up in middle-class homes, with middle-class amenities. Value the taste of a luxury lifestyle that many have never seenor experienced. Makes them feel grown-up. p g p Unity Marketing, 2012 5/19/2012 10 11. When it comes to travel, they are looking to explore newworlds, meet new people, make meaningful and lastingconnections. That often includes extended familyvacations for their children and grand children. They have been there and done that when it comes tofive-star resort destinations. They want to go off track,to surprising new destinations offering newpg gexperiences. They have a bucket list and want to emptyit with quality experiences that will give added meaningand value in their lives. Experiences for boomers need to take their priorities andinterests into account. For example, they dont seep , ythemselves as old in the way their parents were old.Boomers have a sense of youth and interest in doingyoung things. For Boomers, luxury marketers need totake ordinary experiences and make them extraordinaryby offering up something new, different and special. Unity Marketing, 2012 5/19/2012 11 12. Affluent GenXers are two-earner couples jugglingthe challenges of a growing family and verydemanding careers. They really feel the stress fromtheir busy, demanding lives. They have extreme24/7 time pressure. They want to be good at theirjobs, good parents, good partners, good citizens but all of that takes time, which they have little tospare. When they travel, they want peace, relaxation, timeto reflect, reconnect with themselves and their lovedones. Most of all they want to go off the grid. Theycrave five star resort type services, where they cansit by the pool and lay on the beach. When they it b thl dlth b h Wh tharent spending quality time with the kids doing funactivities, they would like the freedom to have theirchildrens needs met by on-site childcare staff. While they are willing to spend for this kind of five-star l t luxury, th also hthey l have hheavy fifinancial d i l demands din their lives, so they tend to be rigorous in planningtheir travels, finding deals where they can trade onpoints for services, upgrades, etc. Unity Marketing, 2012 5/19/2012 12 13. Millennials, have plenty of time and a whole lotof energy. They are new to the luxury lifestyle,f Thh l lif lso they enjoy sampling a little bit of this and alittle bit of that. And when the sun goes down,they are ready for more. They want active vacation experiences whereevery minute is enjoyed to the max. Formillennials social experiences are key, offeringcocktail hours and chances to meet and greet. But like the GenXers, theyre finances aresomewhat tight, especially with the debt-load h i hi ll i h h d b l dthey are carrying from college. They are lookingto maximize their fun for the least amount ofdollars. That is one reason all-inclusive vacationexperiences are in demand they can plan inp ypadvance for all expenses, no surprises at theend. Unity Marketing, 2012 5/19/2012 13 14. If you want to learn more aboutopportunities for luxury travel marketers,marketersyou can order a copy of Unity MarketingsLuxury Trend Report:Luxury Consumers and Their LuxuryTravel Plans 2012 l l If youd like to learn more about the luxuryconsumer generations, you can reach outto Pam Danziger at Unity Marketing. Visit www.unitymarketingonline.com Call Pam Danziger at 717.336.1600 or Email: firstname.lastname@example.org Unity Marketing, 2012 5/19/2012 14