LUXURY RETAIL

MILLENNIALS + Luxury

DIG IN HERE TO SEE HOW TO REACH THE GENERATION THAT WILL (EVENTUALLY) DRIVE YOUR UPSCALE MIX

BY BARBARA THAU

Do millennials long for logo-plastered designer satchels? Not a chance. Their wish list includes items more like a Shinola bag that’s been handcrafted in Detroit.

When it comes to today’s millennials, this is not your mother’s luxury shopper.

For the generation born between 1980 and 2000, luxury connotes a mindset more so than a brand or a high ticket price—and retailers, including eyecare professionals, better take note: Experts say the future of luxury retail sales is in their hands.

Becoming HENRYs

Millennials have displaced baby boomers as the nation’s biggest buying group. And a portion of them are (or are becoming) HENRYs—High-Income-Earning, Not-Rich-Yet folks, says Pam Danziger, CEO of Unity Marketing.

But most of them are not there yet.

For now, cultivating luxury millennial shoppers largely calls for targeting those with non-luxury incomes, says Bob Shullman, founder of the Shullman Research Center. For retailers, millennials with an income between $50,000 and $100,000 are the sweet spot, he says.

The strategy speaks to a larger truism about the draw of luxury merchandise: Contrary to the upscale lifestyle messaging of the big luxury brands that seems to target the 1%, these brands actually hold great appeal for aspirational, non-wealthy millennials who are regular consumers of tony fare—particularly, affordable luxury.

Although most millennials today are not high-income earners yet, “they’re trying entry-level luxury goods,” like a $300 Hermés scarf or a $500 Oliver Peoples frame, Shullman says.

Of course, there is the segment that’s moving on up: Millennials account for about 15% of the 125 million U.S. households with an income ranging from $100,000 to $250,000, according to Unity Marketing. And millennial HENRYs spend disproportionately more on luxury than their older counterparts, which spells opportunity for retailers. What’s more, their ranks are growing, Danziger says.

No matter their income, the big distinction between millennials and older generations “is that the latter still defines luxury with an aura of exclusivity,” Shullman says.

“As for some of the elitism that’s involved in luxury, younger people are just not as into that,” he says. “They are not as interested in what differentiates them from their less fortunate friends and family.”

Danziger agrees. “Today many traditional ideas of luxury have taken on a negative taint in the minds of younger affluents. Old luxury evokes images of elitism, conspicuous consumption, materialism, extravagance, and the excesses of the 1%,” she says.

Miu Miu style MU 01PV from Luxottica
Photo by Jurgen Reisch

Re-Defining Luxury

When you’re marketing luxury to millennials, it’s important to recognize that they don’t want their parents’ or grandparents’ luxury brands or messaging, but their own, Danziger says.

“Young affluents embrace a new style of luxury that is based on a whole new set of values: luxury that is more practical and functional, inclusive, more affordable, democratic, and culturally and environmentally relevant,” she says. “That means marketers aiming to connect with the next generation of luxury consumers need to market their luxury in a brand-new style.”

To appeal to millennials, retailers might start by swapping the word “elite” with the word “express” when envisioning a luxury retailing marketing, product mix, and shopping experience.

That’s because these digital natives are drawn to merchandise and experiences that offer an opportunity to show off who they are—from ballet flats they designed themselves to a foodie-asserting Instagram post of their chic restaurant meal (new signifiers of luxury these days).

Millennials also value craftsmanship and products that reflect conscious consumption, hence the appeal of items like Shinola’s finely crafted, made-in-America goods.

Millennials + Eyewear

While speaking to them “in boomer language” won’t earn their loyalty, engaging them via the trends that reflect their shopping habits will, Shullman says.

For one, millennials tend to reject the accumulation of things. Hence, retailers and ECPs would be wise to take a page from disruptive startups like dress-rental site Rent the Runway and eyewear rental startup Ditto.com to capitalize on the sharing-economy model.

Why not extend the model to an eyewear program from your business whereby shoppers can rent three frames per year with the option to buy?

“It would be a way for them to try out affordable, entry-level luxury goods—and get people coming back,” Shullman says.

With two shops in Pennsylvania, Bouquet Mulligan DeMaio Eye Professionals courts millennials (about 30% of its customer base) via trunk shows that spotlight “the highest of the high end” of its product mix, and play into social media trends, says Jim Mulligan, optician and owner. “We encourage them to bring friends and make it a night out, and they end up Instagramming, Snapchatting, and tweeting about it,” he said.

Bouquet Mulligan DeMaio Eye Professionals also appeals to millennials with the features-and-benefits story of the premium lenses produced by its in-house surfacing lab. “We know what’s best for them, they realize there’s a value in that, and there’s a trust there,” he says. “And the warranty helps seal the deal.”

4 Tips: Your Best High-End Mix

When it comes to selling millennials luxury eyewear, in-store show-and-tell is key.
Drawing them in calls for showcasing luxury brands with a distinct visual panache, and supporting that merchandising savvy by demystifying the features and benefits of premium frames and lenses.

Here, two ECP experts serve up four of their best tips for appealing to millennials in the optical.

1. Deliver a Luxe Look

Millennials are drawn to a “very modern atmosphere and a high-energy practice,” says Jim Mulligan, optician/owner of Bouquet Mulligan DeMaio Eye Professionals, which has two locations in Pennsylvania. To that end, this business recently renovated its offices to exude “high-end, industrial chic.”

It now spotlights its luxury brands, a hefty 35% of its product mix, in high-impact shops with illuminated light boxes.

2. Get the Right Mix

Bouquet Mulligan DeMaio Eye Professionals’ mix of the latest in high-end eyewear ranges in price from $370 to $600. “What sets us apart from other retailers is our high-end, semi-exclusive brands like Alain Mikli, Vanni, and Face à Face,” says Mulligan.

And, using your staff as models to showcase those brands draws interest in the merchandise. Patients can then visualize themselves in what Mulligan calls “jewelry for the face.”

3. Talk the Talk

Also key to winning over millennials is demonstrating the inherent benefits and long-term value of buying premium lenses and frames from an expert versus buying them online, says Eric White, O.D., owner of Complete Family Vision Care in San Diego.

“Millennials like to shop online, and [it can be] difficult to get them to get anything in-office,” he says. “How we have dealt with that is to prescribe from the chair.”

While the group currently accounts for only about 10% of White’s customer base, “we have to look to the future” to prepare for what they will mean to the practice down the road, he says.

“I truly feel the secret is doctor-driven dispensing,” he says. “The message about the importance of quality eyewear needs to be delivered by the doctor in the exam chair, and then reiterated by opticians.”

4. Walk the Walk

Demonstrating the protective benefits of things like blue-light technology to a group that spends much of their lives on multiple screens resonates well with millennials these days, says Dr. White.

Stressing the post-sale value of purchasing premium eyewear from an ECP is key to turning a “showroomer”—a browser who finds a frame they like in-store, only to then buy it for less online—into a loyal customer, Mulligan says.

“We explain customer care and that we stand behind their purchase with a warranty, a lifetime of adjustments, cleaning cloths, screws; whereas if they get it online, they only can deal with the online company—which is nothing,” he says. “Hopefully that helps sway them.”