TRADING UP TO LUXURY 2021 REPORT - communicatorlondon.com - Communicator London
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
BATHING IN BUBBLES How consumers have found comfort in everyday luxuries and how brands can embrace the future. ‘Champagne Comfort’ has been the unexpected and unpredicted trend of the past 12 months. We all now have the taste for a little luxury in our lives. Our Instagram feeds, TikTok streams and Pinterest boards have been inundated with the feel good products that have provided us with the all-important oxytocin boosts we’ve all very much thrived on. Spending on aspirational luxuries and upgrading the everyday has become habitual during the pandemic - from the indulgent at-home grazing platters to the Friday night cocktail kits and extravagant face creams that cost more than your weekly shop - buying less but buying better has replaced a swathe of consumables. At Communicator, we’ve taken a deep dive into the ‘person behind the platform’ - we research today’s consumers, their character, their brand consumption, their shifting perception of value and the content that inspires them. We’ve identified the key Champagne Comfort behaviours & trends that will outlive the pandemic and what brands need to do in social to ensure they don’t lose momentum as life shifts post-lockdown. Buying less but 2 Image: Pexels - Taryn Elliot buying better. 3
LIPSTICKS Barclaycard have reported that Britons have AND HANDBAGS spent £40.6bn online on non-essential items during lockdown, £770 a person Whilst there have been truly devastating economic hardships for some during Covid, it has not been akin to the experience This is counter intuitive to the ‘lipstick effect’ seen during previous of previous financial crises and recessions. People have been major recessions - the theory that when faced with an economic restricted in movement, rather than financially (assuming crisis, people will buy a designer lipstick rather than a designer they have retained their jobs or have been afforded support), handbag. In fact over the past 12 months, people have bought which has meant entirely new spending patterns have been both handbags and lipsticks, searching for escapism and ways to adopted and some of these new behaviours are here to stay. spend the leftover cash they would have usually ploughed into commutes or weekends away. At the outset of the pandemic, economists predicted consumers would stock up on basics and increase spend on value items. But, aside from the great loo roll dash of April 2020 (which we’re sure is destined for its own Netflix documentary) consumers have, on the whole, chosen to upgrade their everyday. Louis Vuitton have seen bag sales increase 123% over recent months. Image: uk.louisvuitton.com/gb/ 5 4 Image: Unsplash - Laura Chouette
ADDING A LITTLE FIZZ TO FRIDAYS We’ve broken down the lockdown audience and blended our own cocktail of social intelligence, which has uncovered three distinct ways in which the consumer has sought Champagne Comforts, upgraded their consumption and shifted their behaviour in order to enhance their lives. People have been extravagantly popping corks and drinking premium premixed cocktails at home Drinks marketing runs in our veins and across our clients we’ve to celebrate lockdown birthdays and would- seen a huge shift in how consumers have been purchasing and have-been-weddings, as well as upgrading their consuming drinks. Direct to consumer (D2C) channels have become collection of spirits to liven up their evening Zoom the norm, with brands circumnavigating the old distribution models quizzes. Twitch gaming has become an occasion to (broken by Covid). drink beer. Sales of sherry and premium tequila are on the rise. Unpredictably yet notably Champagne sales, which usually slide during times of hardship, have rocketed despite restaurants and bars Gifting has also been a big driver of premium being closed. This hasn’t been achieved by discounting; the price, spirits, our social-first Father’s Day campaign for volume and value have gone up. Gentleman Jack (from the Jack Daniel’s stable) positioned it as an everyday luxury for fathers everywhere and saw the product sell out across online retailers. Upgrades in drinks haven’t been isolated to alcohol. At home coffee machines, sparkling water and blenders have seen increases as people try to Brits drank add a little luxury shot into their groundhog days of 13% homeschooling and remote working. People are no longer saving the ‘good bottle’ for guests and we envisage this trend continuing. more champagne Brands that have been enjoyed at home, made people feel special and provided refreshment during the festive during moments of celebration have earned brand love and will continue to be part of the everyday. period of 2020 6 Image: Unsplash -Louise - Lyshoj 7
SWEATY SWITCHUPS Fitness has undergone a revolution during the pandemic. Whilst the gyms have been shut, our living rooms have become our workout studios, hosting live fitness classes across all social mediums. Apps, smart devices and the availability of inspiring content, from Joe Wicks to the Royal Ballet, has made PT style exercise accessible for those who wanted it. This has provided plenty of content for us to share, making sure our friends know just how fit we’ve been keeping - Health Signalling is the new humble brag. Successful brands have been focusing their messaging on the psychological benefits rather than the physical, and the premium end of the health and fitness sector amplifies this. Lululemon (hosting live Instagram classes), Sweaty Betty (focusing on body & mind) and Gymshark (with their sharp optimism) have all shifted their focus from gym class wear to at home workouts (and working from home comfort). In terms of big ticket fitness equipment, Peloton has been a clear lockdown winner and is celebrating a 172% year-on-year hike in sales, connected fitness subscriptions grew by 113% and paid digital subscriptions grew by 210%. Health & wellness is now clearly beyond a trend, the pandemic has heightened the importance of personal fitness, from both a physical and mental health viewpoint. Gyms as they prepare for reopening are expanding their offers to include body & mind as well as encouraging ‘fresh air’ workouts. Adventurous sports and wilderness training will provide the antidote to the indoor treadmill. Digital fitness communities that have supported people & matured over the past 12 months will 13% of UK consumers spent grow in importance and size, outliving the zoom classes and the significantly on sports and makeshift home gyms. There is an opportunity for brands to imbed outdoor gear up to July 2020, themselves into these communities and provide the platform for holistic fitness - inside and outside - ensuring relevance and longevity. with men spending triple the amount than women. 8 Image: Unsplash - Tyler Nix 9
Image: instagram.com/tikatheiggy THE LUXURY OF SEX Luxury came in all forms this year - including intimate products and sex toys. Whilst physical dating has been put in hiatus and the opportunity to be close and intimate with others has been scarce, people have still found ways to satisfy their sexual desires by seeking out premium brands for those experiences. In the ultimate ‘treat yourself’ behaviour, sales of high-end sex toys, erotic fiction and underwear have soared. Anne Summers report that premium sex toys BEST IN SHOW (over £100) were up 160% over the winter months With little else to do than go for a walk, pets have become a huge focus and sales tripled yoy in the first lockdown. Lelo, the during Covid with new puppies and kittens appearing in social feeds with Swedish luxury sex toy brand, saw sales going up by increasing frequency. Whilst providing criticalcompanionship and comfort 148% at the peak of lockdown. to many, they also have become a creative outlet both on the catwalk in the park and in our social feeds. Pet influencers, including the likes of Tika the Iggy (who was recently interviewed by Vogue)have reached new heights on Instagram & TikTok and Sex-positive brands have already have provided a welcome antidote to the plight of humans. ignited conversations on mainstream social media and consumers are Whilst we haven’t had the chance to dress up ourselves, sales of pet unashamidly upgrading the contents accessories arethrough the roof. John Lewis reports dog coat sales are up of their bedside cabinet drawer. 420% year on year, with dog jumper sales up 2,200%. New D2C dog brands As we emerge from isolation and the are plentiful and established fashion brands are diversifying into pet wear. dating scene reignites, the challenge Zara launched a dog homeware range, Ugg collaborated on boots for dogs faced by the brands that have given and luxury outerwear brand Moncler recently launched a collaboration with us individual pleasure, is the need to Poldo Dog Couture including a silver cloak and tiny versions of Moncler’s evolve conversation and relevance signature quilted nylon vests. from ‘me’ to ‘we’. With a generation of fur-babies weaned on luxury brands, we can’t see this trend abating for a long while. 10 11 Image: Image: instagram.com/lelo_official/ instagram.Com/lelo_official
Our innate desire to show off, share experiences and be a little smug hasn’t abated during the pandemic. In fact it’s been quite the opposite as ALL our socialising has been redirected online. The fun and social aspects of social media have (thankfully) been reignited and personal social feeds in lockdown have been a welcome antidote to doomscrolling. People have sought pleasure in micro-moments - their home baking successes (or not), disco dancing in the kitchen with Sophie Ellis-Bextor, the new puppy, the new pizza oven, the fancy restaurant box and now their vaccine selfie. Many brands have been smart - because they’ve had to be - with tempting invitations across social media to ‘treat yourself’, tapping into micro-moments, harnessing new social commerce features offering easy ways to buy and using livestream shopping to provide urgency. We’ve succumbed to Champagne Comfort. Consumer behaviour hasn’t always been predictable throughout the past year - but the brands who have been successful (and will continue to be) are the ones who have harnessed social media’s ability to adapt and innovate at speed to quickly lead the way in shifting habitual shopping purchases and earn themselves some serious brand love. CHAMPAGNE COMFORTS We’ve broken down the lockdown audience and blended our own cocktail of social intelligence, which has uncovered three distinct ways in which the consumer has sought Champagne Comforts, upgraded their consumption and shifted their behaviour in order to enhance their lives. LIVING UPGRADING 1 surrounding myself with less but better quality to make myself feel good. THE EVERYDAY- OUR BEST MAKING 2 diverting the holiday spend into being a little extravagant ASPIRATIONAL for aspirational luxuries and occasions at home. A REALITY- LOCKDOWN 3 GENEROUS GIFTING- appreciating the people in my life and spending on better brands to treat them. LIVES We have identified significant and interesting shifts in spending patterns and behaviours, giving us clear signals to formulating future strategies for our clients. 12 Image: Unsplash - Tyler Nix 13
EMBRACING THE FUTURE We believe that ‘treat yourself’will give way to ‘treat others’’.Living our best lockdown lives’ will give way to ‘unashamedly showing off in person’. *Watch out We’ll soon be showing off our spruced up homes in person to real live for the endless group pictures, the gym selfies and guests, we’ll be firing up the new hot tubs and portable BBQs for our families, having Sunday lunch at the pub with our friends, going to the the ‘I’ll never take this for granted again memes.’* cinema, working out at the gym and there’ll be new usage occasions for And social media - as a community connector - will the premium brands that played a huge part in our every day. be harnessed to deepen engagement with brands in these contexts. A pinch of the fancy frivolity of the roaring 20s will likely be reflected over the coming months and years - #FormalFridays are already trending. People have changed during the pandemic and it is certain that life won’t We’ll still be bathing in bubbles seeking a little be going back to how it was. Brands now need to look forward rather than Champagne Comfort but maybe not just on our own. attempt to go back to ‘business as usual’. Let’s fire up the hot tub and jump in. At Communicator we’ve been working with our clients’ brands to understand how they can embrace the future, ensuring they’re relevant Communicator is a social first creative agency that and are prepared to tap into the post-lockdown psyche. Some behaviours focuses on the person behind the platform. will certainly be with us for good - online shopping, direct to consumer sales, and social commerce are all now part of the fabric of the retail mix. We pride ourselves on social thinking with a twist, As social restrictions ease throughout the year and the spaces we have with a client portfolio spanning the likes of Jack lost reappear, we have identified the big questions brands should be Daniel’s, BrewDog, PepsiCo and Lavazza. Working addressing. with clients we provide strategy, creative, content production, influencer marketing, paid social media management and more. How will the consumer behaviours that have become ingrained in our everyday manifest themselves? How will the social media trends & habits we have seen in lockdown translate into the post-pandemic world? How can your brand have real world relevance as we all re-emerge? Will the upgrade brands that played an important role in lockdown become part of our new social occasions? How can premium brands shake off the language of lockdown and look forwards with optimism? 14 15
BATHING IN BUBBLES How consumers have found comfort in everyday luxuries and how brands WANT TO can embrace the future. KNOW MORE? ‘Champagne Comfort’ has been the unexpected and unpredicted trend of the past 12 months. We all now have the taste for a little luxury in our lives. Interested in hearing more? If you would like a Our Instagram feeds, TikTok streams and Pinterest boards have been inundated with the feel good products that have complimentary social audit to see how your brand can provided us with the all-important oxytocin boosts we’ve benefit from our social thinking with a twist, or even all very much thrived on. just a virtual chat please contact: Spending on aspirational luxuries and upgrading the everyday has become habitual during the pandemic - from india.lawrence@communicatorlondon.com the indulgent at-home grazing platters to the Friday night cocktail kits and extravagant face creams that cost more than your weekly shop - buying less but buying better has replaced a swathe of consumables. At Communicator, we’ve taken a deep dive into the ‘person behind the platform’ - researched today’s consumers, their character, their brand consumption, their shifting perception of value and the content that inspires them. We’ve identified the key ‘champagne comfort’ behaviours & trends that will outlive the pandemic and what brands need to do in social to ensure they don’t lose momentum as life shifts post-lockdown. Communicatorlondon.com
You can also read