The creator presents a thesis on why 'elevated millennial lifestyle brands' are failing. He first defines their formula (disrupting ordinary products with aspirational branding), then explains how a K-shaped economy is eliminating their target 'aspirational middle' consumer, pushing people towards either true luxury or value brands like Costco. He concludes by arguing that in a polarized world, the centrist, 'say-nothing' aesthetic of these brands is no longer effective, and advises brands to either move up-market, find a niche, or compete on volume.
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Is Costco the true middle-class lifestyle brand?
Today: why aspirational middle-class branding is collapsing in a k-shaped economy - where consumers are either reaching for true luxury or drowning in cost-of-living pressures.
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Transcript
The elevated millennial lifestyle brand is dead. Now for years there was a clear formula to building a millennial brand. Take some ordinary product like razors or mattresses and disrupt the category by turning it into an aspirational lifestyle good. Complete with design led imagery, a web native shopping experience, and an aspirational best still accessible price point. Just enough to feel better than other plebs for using it, but still affordable enough to be treated as an everyday purchase. The problem is, in this economy, the target consumer for this type of brand narrative is disappearing. These are not luxury rank, they are targeted at the aspirational middle, in a k shaped economy that is increasingly rewarding only the wealthy. Either you are part of this lucky few, in which case you are reaching for true luxury rank, or you are drowning in ever increasing rental or mortgage repayments for your shit box studio apartment, in which case, aspirational brands become completely farcical, because you can only sell aspiration to a society that believes in the idea of aspiration itself. In this economy, Costco is the new true middle class brand. Furthermore, this is effectively centrist branding in a world that is growing increasingly polarized. The creed of the millennial lifestyle brand was to look nice best say nothing. Sure, they would incorporate ideas like self care or community or sustainability, but they weren't genuine commitments. They were aesthetic ideas that confirmed the elevated position of the buyer. And as I discussed with Tony Wang on a previous video on horseshoe maximalism, people are increasingly rejecting say nothing for product and brand narratives that live at the extremes, which is why Gwyneth Paltrow's Goop and Alex Jones' Infowars can sell the exact same product of cordyceps mushrooms as either sun potion or wake up America. If you're a brand in these categories, you need to accept that there is very little room for new entrance in this elevated middle ground. Either you build up to luxury brand positioning, or you drill down to a much more focused niche. Or you can kill your ego and accept a more down market position, where your margins are lower, but tier made up for with extra volume. Rip to the millennial rank. We'll be doing a eulogy at Rank Club this weekend. You should come. Just embrace your knees.