How are luxury brands going to capitalize on ‘Generation Next,’ a phrase coined by Business of Fashion which refers to the combination of Millennials and Generation Z? Based on the recent moves made by different players in the industry, from Gucci to Nordstrom, it appears that selling an experience is the way to reach this generation (who will account for 45% of the global luxury goods market by 2025). A recent survey conducted by Business of Fashion concurs, in this survey BOF found “74% of Generation Next would rather spend money on a great experience than on a luxury brand.”
Above picture via Gucci (50% of all of their sales are generated from Generation Next. The fashion house have reported a 43.4% year-on-year jump in revenue for the first half of 2017).
“…in a world where displaying social status is becoming more about the accumulation of (Instagrammable) experiences and less about the accumulation of objects.” (Lauren Sherman and Robb Young, 2017)
Concept Stores are a response to this demand for experiences over objects. A concept store is a shop that sells a carefully curated and unique selection of products that connect to an overarching theme. These stores, unlike the traditional brick-and-mortar stores, create an experience that cannot be re-created online. We have compiled a list of must see retail concept stores across the globe. Check it out below!
USA (East Coast)
USA (West Coast)
FlowerBoy Project (LA)
Voo Store (Berlin)