Luxury brands target teenage ambassadors, such as NewJeans, seeing that younger generations are consuming more luxury goods.
Global luxury brands have recently been selecting teenage K-pop idols as ambassadors and advertising models. Compared to the past, when they chose idols in their 20s like members of BLACKPINK, the age range has recently dropped to teenagers.
Now, all members of the K-pop girl group NewJeans have been chosen as ambassadors for brands such as Chanel, Dior, Gucci, Burberry, and Louis Vuitton. This movement is interpreted as a result of the decrease in the age group of luxury consumers, as well as the expectation that the MZ generation will have a higher consumer share.
NewJeans members have been selected as ambassadors for luxury brands such as Chanel, Dior, Louis Vuitton, Gucci, Burberry, and Giorgio Armani
According to the industry on April 27th, Dior recently selected Haerin, a member of K-pop girl group NewJeanss, as an ambassador for jewelry, fashion and beauty. At the time, NewJeans’ agency, Ardor, said, “NewJeans Haerin is active as a global ambassador for Dior Jewelry and a house ambassador for Dior fashion and beauty.” Meanwhile, Dior stated, “Through this bond, Dior and Haerin’s special journey to strengthen our precious relationship more than ever, and to realize creativity with grace and boldness has begun.”
Earlier, Hanni of NewJeans was selected as an ambassador for Gucci and Giorgio Armani Beauty. Meanwhile, Hyein was chosen for Louis Vuitton, Danielle for Burberry and Saint Laurent Beauty, and Minji for Chanel Beauty, Fashion, Watch and Jewelry.
As the age of luxury consumption decreases, luxury brands lowered the age of ambassadors, from K-pop idols and actors in their 20s and older to teenagers
The reason for the continuous selection of teenage idols as ambassadors for luxury brands is the expectation that the main consumers of luxury goods will be the MZ generation. According to a recent CNBC report, consulting firm Bain & Company said that by 2030, the Alpha generation (born after 2010) and MZ generation (Millennials + Gen Z) will account for 80% of global luxury fashion brand sales. Overall, it is said that the age group of luxury goods consumption is decreasing due to the influence of SNS.
At the same time, the report states that the first luxury purchase for Gen Z is at around 15 years old, 3-5 years earlier than the Millennial generation, due to the increase in affluent people, the spread of social media, and the generalization of online sales channels, which make it easier to consume luxury goods.
As a result, concerns have been raised among parents, who have doubts over buying luxury goods for their young children.
On the other hand, despite rapid inflation, rising interest rates, and economic downturns, luxury fashion brands’ sales were not affected last year, said Bain & Company. Instead, global sales increased by 22% to 353 billion euros (approximately 471 trillion KRW). It is also predicted that sales in 2023 will grow by about 3-8% depending on China’s economic recovery after “Zero COVID” and the economic situation in the United States and Europe.
In addition, the United States was the country that consumed the most luxury fashion brands, with sales increasing by 25% to 121 billion dollars (approximately 150 trillion KRW). In contrast, China’s sales decreased by 1% due to the spread of COVID-19 and lockdown measures, while Europe’s sales increased by 27% due to the increase in American tourists.
In terms of products, sales of leather goods increased by 23-25%, with about 70% of the growth attributed to price increases, according to Bain & Company.
Source: CNBC, Daum