By IC, Jul 1 2020 08:00AM
Whether next-gen HENRYs (high-earners-not-rich-yet) or LOTIs (living-off-trustfund-income), many wealthy young people differentiate between luxury brands by how those brands will be investing in sustainable/ethical practices and important social issues.
Whilst still influenced by meaningful back-stories of old-fashioned or superior craftsmanship, modern affluent consumers increasingly shop with purpose and choose brands that drive positive change.
Whether it’s ecology, diversity, gender fluidity or philanthropy, young HNWIs need to see that their ability to spend doesn’t have negative consequences. Many young people distrust the traditional elite and feel alienated by brands that force them to conform to an external model of luxury and instead choose luxury that they can proudly define themselves by.
Selecting a luxury brand that they feel comfortable associating with drives many wealthy Generation Zs to pay more attention to how a brand inspires them and not just a brand that they aspire to purchase from. The new-generation entrepreneur tech billionaires such as Jeff Bezos, Mark Zuckerberg, Azim Premji, Carlos Slim Helu to name but a few, show that philanthropy/good causes is the status story and where they lead, the young status seekers follow.
For many, the specific cause supported is immaterial, it’s just that the luxury brand must take a stand on something. For others, old causes are yesterday’s news and they want brands with influence to take the lead and not just follow – so finding and publicising a relevant new cause should be part of a carefully selected suite of issues that a luxury brand should be raising awareness of as well as demonstrating their commitment to and positive impact on.