Winning the Hearts and Minds of the Millennial Generation. Guy Nussey Regional Director Asia Pacific Concha Y Toro

Transcription

1 Winning the Hearts and Minds of the Millennial Generation Guy Nussey Regional Director Asia Pacific Concha Y Toro

2 What are Millennials? Difficult?

3 The Facts Millennials are your most important (future?) customer group 45% of global luxury spend by 2025 The first generation to approach adult life in less favourable economic conditions than their parents More engaged with self expression Defined by consumption Truly Global Mindset

4 What is Luxury? Expensive? Limited? Why pay more?

5 How can we connect the Luxury World with Millennials?

6 How can we identify the Luxury Millennial Consumer?

7 Two Men walk into a bar..

8 The Good News Millennials are Passionate about Luxury Products Millennials are Sacrificial 83% of year olds are not opposed to buying a luxury product in a time of crisis (Melty 2013 study) Millennials have growing spending power >$200 Billion Now the biggest group, outspending baby boomers (Berglass + Associates, 2014)

9 The Bad News Millennials are cautious with Luxury Masstige ge/pseudo-luxury Millennials are Demanding : Value for Money Transparency Rarity Millennials want Sustainable Development, Substance and Morality from their Luxury Brands

10 Redefining Luxury for the Milliennial Consumer Old Luxury World QUALITY UNIQUENESS DIFFERENTIATION HERITAGE BEYOND NECESSARY SELECT GROUP Millennial World VALUE RARITY/CUSTOMISATION INNOVATION PERSONALITY EMOTIONAL BOND MY GROUP These 2 worlds connect in several variables, the key is finding how to empower them

11 Redefining Luxury for the Milliennial Consumer Old Fashioned or Traditional Luxury Modern/Millennial or My Luxury EXCLUSIVE BRAND EXPERIENCES DELIVERED THROUGH TRADITIONAL MEDIA UNCHANGED IN INCLUSIVE PERSONALIZED EXPERIENCES DELIVERED THROUGH HIGH TECH DIGITAL MEDIA CONSTANTLY EVOLVING GENERATIONS HIGHEST QUALITY MATERIALS KEY HIGHEST QUALITY USER EXPERIENCES KEY

12 Challenges Personalisation does not equal scale? Digital Media Fragmentation How do I find and talk to my audience? How do we make alcohol an experience? Off Trade

13 INNOVATION = GROWTH INCREMENT OUR OFFER INTO NEW SEGMENTS WITH: COMPLEMENTARY AND HIGHLY COMPETITIVE PRODUCTS SUPPORTED BY SOPHISTICATED DIGITAL FOCUSSED MEDIA AND EXPERIENTIAL MARKETING PROGRAMS

14 WHAT DO PEOPLE ASSOCIATE WITH WINE?

15 Complexity Boring Sophistication Elegant for Dinners Confusing Heritage France High prices Tasty Relaxing Status Celebrations Good for health Lifestyle

16 How do Millennial consumers feel when choosing a bottle of wine?

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19 And confusion can lead to

20 Bad decisions and unsatisfied consumers

21 What do people want from the ideal wine?

22 Great taste

23 Status and Sophistication AND GREAT VALUE

24 An uncomplicated decision process

25 and the security of a recognized Brand

26 INNOVATION FOR THE MILLENNIAL PRODUCT COMMUNICATION

27 PRODUCT INNOVATION

28 New Categories Current Portfolio ULTRA FOB PREMIUM200 USD SUPER PREMIUM SUPER PREMIUM Reserva Privada FOB 60 USD NEW Leyenda NEW Packaging Re-stage NEW M-U Edition PREMIUM PLUS PREMIUM Reserva PREMIUM NEW Devil s Collection Reserva Range

29 A NEW CONCEPT IN WINE - High Quality - Modern and sophisticated - Relaxed - Endorsed by a famed brand

30 AN UNCOMPLICATED OFFER RED WHITE BRUT Shiraz Cabernet Sauvignon Carmenere Rapel - Maipo Sauvignon Blanc Chardonnay Gewurztraminer Casablanca - Limarí Chardonnay Limarí * Blends & Varietals are not communicated to consumers on the front label

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32 TARGET?

33 NOT HIM!!!

34 possibly her

35 definitely them

36 Target Consumer Cool & Sophisticated People, that enjoy wine, but don t necessarily understand much about it and neither do they want to! Men and Women that relish life without restrictions and complications and are willing to spend a little more to enjoy great experiences.

37 Why blends? Wine Business Monthly : Red Blends -? Potential Benefits Many operators agree that blends have historically offered producers a chance to show their winemaking styles, vary the final product and adjust wines according to specific harvest conditions Most of the world s top wines are blends.

38 Premium Packaging Upgraded from CdD Reserva Higher quality labels New premium quality printed capsules/screwcaps Premium, cool and sophisticated image

39 INNOVATION COMMUNICATION

40 Marketing Strategy Engage and Experience Point of Sale Innovation and Impact. Highlighting and generating experience around the product on the shelf

41 Technology is Key and We Must Evolve AR not VR will drive millennials consumer experience Communication Focused on the digital world

42 Technology is Key and We Must Evolve Digital content cannot just be a brand website. Gucci drove 190% increase in website visits due to focus on Youtube rich content.

43 1+1=3 Link brands to gain exposure to the Millennial Luxury consumer

44 Sustainability and Millennials Defining Brand Missions and Identity Do No Evil Why Tod's renovated the Colosseum, and why Bulgari repaired the Spanish steps, while Fendi threw millions into a fountain, SCMP August 2016 OFFICINE PANERAI ANNOUNCES THE RESTORATION OF THE CLOCK OF THE FLORENCE DUOMO, KNOWN AS THE CLOCK OF PAOLO UCCELLO 28 May, 2014 Philanthropy or Marketing?

45 Big Brands and Millennials We can have a Big and Transversal brand But also a brand that gathers many wanted characteristics from the Millennial World

46 Aspirational Approach Quality of Materials Modern image Confidence Innovation Impactful communication Sustainable Engaging and Emotional

47 Empowering these variables to connect with this target group we can BE IN THEIR BUYING SCOPE Without being alienated by the rest of consumers

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