Mirabaud on the Consumption Revolution

Studies suggest that, by the year 2025, the majority of luxury shoppers will be Gen Zers and Millennials, thus making up 65 to 70% of the market. This is guaranteed to drive industry changes, including how, where and what they shop as well as the landscape of luxury and lifestyle goods. Generation Z, or Gen Z, refers to individuals born between 1997 and 2010 with a penchant for more or less unlimited social media interactions.

This frequent alternation between online and offline experiences can blur their sense of awareness. This especially comes to play in how brands react to their Millennial and Gen Z clientele. It essentially requires constant efforts to keep up. For instance, businesses need to rethink multichannel marketing, as flashy slogans and banner ads have little to no effect on this market niche. These individuals find their prime source for information in influencer videos.

Environmental, Social and Governance (ESG) Values and the Big Paradigm Shift

Millennials and Gen Zers present a surprising awareness of their effects on society and major situations beyond their control, such as animal welfare, societal inequalities and climate change. Their investment in these issues makes them more willing to alter their behaviors, particularly when it comes to consumption.

The global social disruption that began in 2020 caused radial paradigm shifts, encouraging the prioritization of sustainability, identity and equality. This further influenced the choices these consumers made. The effects of the paradigm shift can primarily be tracked on social media, where Millennials and Gen Zers frequently present their concerns unabashedly.

The result of this widespread rethink enabled disruptive brands with the capacity to make sensitive, agile and quick changes to initiate sociopolitical and cultural shifts. In the same vein, luxury brands with a business focus on selling consumers a means of expression learned to adapt. They assumed the values of the newly forming market and began to interact on redefined terms.

Private Equity and the Transition to Economic Sustainability

The economy has recently seen an increased influx of private equity, prompting the application of an ESG-influenced philosophy to determine their impact on society in concrete, measurable terms. The Mirabaud Lifestyle Impact & Innovation strategy—one of the three private equity vehicles fielded by Mirabaud—began as a franchise in 2017 after meeting with Renaud Dutreil, a former minister of France. Not long after this, Mirabaud combined forces with Olivier Seux and refined its investment solutions.

The group made further private equity managerial hires in the spring of 2022 when they added luxury and FMCG expert, Chabi Nouri – former CEO of Piaget. Nouri now serves the company as a private equity partner for Mirabaud Asset Management. Furthermore, Nouri is a member of the Lifestyle Impact & Innovation team which consists of entrepreneurial intellectuals. The team navigates the real economy and handles business developments in the market, backing entrepreneurs with the potential to develop into major players within the innovation, lifestyle, and digital spheres in the future. In doing so, they also focus on the expectations of up-and-coming generations while providing fertile ground for a positive impact in ESG-related affairs.

As Nouri puts it, “We invest in businesses that have a purpose beyond financials. Given the team’s background, we are able to take a seat at the companies’ table and act as a strategic partner to help them become the new lifestyle leaders, providing them with assistance and insights in marketing, management, distribution and sustainability.”

The Head of Mirabaud’s branch in Zurich, Michael T. Hoesli, adds to this by saying, “In resonance with Mirabaud’s 200 years of history and its capacity to constantly adapt, we have developed an entrepreneurial focus, concentrating our efforts in niches where we have the expertise to make a difference in a sustainable, long-term way in combination with our premium and bespoke service offering.”

Mirabaud is a key investor in companies such as Pangaia, which focuses on the materials science with the objective of saving the environment, Mate Bike, a manufacturer of foldable electric bikes, La Bouche Rouge, a manufacturer of circular, sustainable cosmetics, or DiamConcept, company specializing in producing synthetic diamonds.