When it comes to yacht market audience segments, we need to look beyond millennials. The buying power poised to grow over the next few years is clients in their early 20s, known as Generation Z (Gen Z). Bloomberg reported that Gen Z has US $360 billion in disposable income to spend; that’s big business for yacht brands that can reach and engage this affluent audience.
Business Insider reported that superyacht owners are now 10 to 15 years younger than they were 20 years ago, and this trend is set to increase. While a study by the International University of Monaco, in collaboration with shipyard Rossinavi, concluded that the average age of superyacht owners is projected to be between 35 and 45 over the next two decades.
So, how can brands target Gen Z in the yacht industry? And, what is the best way to connect and engage with this new audience?
Here are some things to consider when marketing Gen Z:
Yacht marketing: How to target Gen Z
1 – Disrupt the norms
It is simple marketing that to stand out in any busy market, brands need to be different. When targeting Gen Z in the yacht industry, being different is even more crucial. Yachting is a traditional industry built on legacy and values, which are changing due to this generational shift. Gone are the days when brands could sit back and float along generating standard content; brands must now create their own trends and make a statement to capture the Gen Z audience.
2. Connection and community
This new generation has a unique relationship with technology; they have grown up with it and use it to express themselves. Not only are they hyper-connected but also hyper-opinionated, which is why fostering community elements is vital for brands who wish to appeal to Gen Z. If brands invest in the community and care about the people involved in their success, this will create meaningful relationships that Gen Z values.
3. Cause-oriented
Gen Z is attuned to today’s global affairs and issues, caring about and acting upon them both online and in real life. Gen Z supports brands that share their values, and when investing, they lean towards socially responsible brands. Brands must communicate their core values to show how they improve society. Within the yachting industry, issues surrounding the oceans’ health are essential for brands to address – simply as livelihoods and the industry depend on them. As well as the environment, Gen Z also cares about how brands approach diversity and inclusion; brands should show authentic commitment to these two issues.
4. Tried and tested
Gen Z value trust and authenticity, both critical elements when evaluating brands. Yacht brands must be true to their values and create long-term relationships. Trust is vital when targeting Gen Z in the yacht industry as clients are parting with much more significant sums; the correct influencer marketing can help brands demonstrate how yachts and associated products warrant such price tags. Gen Z trusts social media influencers over other forms of marketing, and the rise in genuninfluencers has emphasised that less is more when it comes to influencer marketing.
5. Interactive marketing
According to Forbes, Gen Z has an attention span of around 8 seconds, compared to the 12 seconds of millennials. This extremely short attention span is crucial to yacht marketing strategies. Content should be highly interactive and engaging, using multiple visual assets and videography. Whether short-form videos on social media platforms or longer ones on platforms such as YouTube, videos will put you in front of competitors when targeting Gen Z in the yacht industry. The content must be attention-grabbing, relevant, and valuable to reach the audience. Other interactive yacht marketing strategies should include virtual and augmented reality elements through the Metaverse. According to Deloitte’s 2021 Digital Media Trends report, “participation within the Metaverse is vital for marketing if you want to engage with Gen Z.”
6. Influential platforms
Gen Z has had quick and easy access to the internet and social media for most of their lives. A well-thought-out social media marketing strategy can assist any brand in reaching its audience successfully. Gen Z uses different social media platforms uniquely; they spend the least time on LinkedIn and Facebook and favour the faster-moving platforms of Instagram, TikTok, and Twitter. Yachting brands can use Instagram to share the yachting lifestyle and aspirational posts with realistic content while working with influencers. It is vital to prioritise short-form video content using Instagram Reels. TikTok is more about unpolished, fun content where brand content can go viral. It is important to keep an eye on the latest yacht market trends and hashtags related to the industry.
7. Experiential campaigns
The yachting industry is all about experiences and fostering a luxury niche lifestyle. Gen Z consumers are focussed on having experiences, creating deep connections, and living a more meaningful life; therefore, this is key for brands to represent.
Experiential marketing campaigns can help your brand attract Gen Z clients, helping them feel included and connected. This generation tends to have positive feelings towards a brand after attending an event or branded experience. Examples of this can include exclusive events which offer memorable experiences. Making a lasting impression now is vital as this will foster brand loyalty as the generation develops into a position with yacht purchasing power.
In recent years marketing has been heavily aimed at millennials, but now it is time for brands to target Gen Z in the yacht industry. Together with technological advances, this generational shift is transforming the yacht marketing landscape. Today there are huge opportunities and possibilities for brands to market to Gen Zs. While it can be transformational, it can also be challenging to navigate.
Relevance Yacht is a full-service luxury digital marketing agency that has helped the world’s leading luxury yacht brands develop bespoke campaigns that target Gen Z in the yacht industry. Our specialists cover branding, website design, SEO, content marketing, paid media, PR, social media, and CRM. We can help create a digital marketing strategy that appeals to Gen Z. Contact Relevance Yacht to learn more.