US$72,000 Paper Clips, a US$810 Eraser Bag: Gen Z Positions the New Luxury Market
An ordinary paperclip costs less than a cent, now it sells for US$72,000. What happened?
Recently, Virgil Abloh signed an agreement with Jacob & Co to carry out the project "Office Supplies" - a line of diamond-encrusted 18K gold paperclip jewelry produced by the jewelry and watch retailer. Privately founded in 1986 by jeweller Jacob Arabo, the selling price is from US$3,200 to US$72,000 — an unbelievable price.
Not only Jacob&Co., Louis Vuitton also transformed its handbag into an eraser box. The accessory model is worn like a fashion chain with the LV symbol integrated on the silver chain. The outer case of the eraser is covered with canvas leather and the classic monogram pattern of the French fashion house
As Millennials and Gen Z will account for 60% of the total luxury goods value up to 500 million USD (predicted by 2025 from Boston Consulting Group), it is time for marketers and brand managers to spend their time to study the law of survival for this brand.
Returning to the Jacob&Co story, with models priced between $3,000 and $72,000, priced subject to Virgil's tacit approval, this is a rebuttal of the Arnault family's rule of luxury trading. The owner of LVMH once stated: “Luxury is something defined by price.” Virgil Abloh has gone beyond the concept of “ordinary office equipment” to create new jewelry for Jacob&Co. and elevate office furniture into an art object.
With Louis Vuitton, it is clear that LVMH has quickly recognized that some other brands are starting to age, less attractive, heritage values if not refreshed, also become old and outdated. As consumers become less patient, brands must accelerate sustainably: innovation, technology, and constant reengineering.
Louis Vuitton, with the vision of Delphine Arnault - the group's vice president, it is also wise cooperation to attract Generation Z and Millennials. Or Gucci, years after the departure of Tom Ford, once died in the market because the brand was too faint, vague and indistinguishable. This has changed. Now, Gucci has a distinct, consistent, smart brand style. Fashion houses express them through artistry, advertising that adheres to the needs of young people, and changes in the service experience in-store or online.
Chances are right after a pin, an eraser bag, maybe a straw, a suitcase backpack, all can become luxury brands. As long as you understand the consumer psychology of Millennials and affluent Gen Z, that's exactly the advice.
