TRADING UP TO LUXURY 2021 REPORT - communicatorlondon.com - Communicator London

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TRADING UP TO LUXURY 2021 REPORT - communicatorlondon.com - Communicator London
TRADING
UP TO
LUXURY
2021 REPORT

              communicatorlondon.com
TRADING UP TO LUXURY 2021 REPORT - communicatorlondon.com - Communicator London
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
TRADING UP TO LUXURY 2021 REPORT - communicatorlondon.com - Communicator London
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
TRADING UP TO LUXURY 2021 REPORT - communicatorlondon.com - Communicator London
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
TRADING UP TO LUXURY 2021 REPORT - communicatorlondon.com - Communicator London
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
TRADING UP TO LUXURY 2021 REPORT - communicatorlondon.com - Communicator London
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
TRADING UP TO LUXURY 2021 REPORT - communicatorlondon.com - Communicator London
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
TRADING UP TO LUXURY 2021 REPORT - communicatorlondon.com - Communicator London
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
TRADING UP TO LUXURY 2021 REPORT - communicatorlondon.com - Communicator London
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
TRADING UP TO LUXURY 2021 REPORT - communicatorlondon.com - Communicator London
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