A View from the Top: Learnings from the Luxury Insights Summit

Regardless of wealth, we all buckled down during the recent recession. But the economy has rebounded and there is endless opportunity for luxury marketers. There’s one caveat. Luxury marketers must be strategic in their approach and most of all, truly focus on the consumer. The era of the aspirational consumer is gone. Now, luxury consumers demand your full attention and welcome personalization and customization.

At yesterday’s Luxury Daily Luxury Insights Summit, we all walked away with a wealth of knowledge (no pun intended).  Cara David, managing partner of YouGov, presented some key findings from the Survey of Affluence & Wealth (YouGov/TimeInc). The key themes included:

• A Global Affluent World: Global wealth was $263 Trillion in 2014 and is estimated to be $281 Trillion in 2015. And, more than 3/4 of that wealth is help by the top 10%.
• Fear of Edges: Qualitative concerns dominate the world of affluence, including unquantified risk, social justice, economy, and political corruption.
• The Time Has Come: There’s an estimated 6.6% increase in luxury spending in 2015. In fact, 42% of global luxury consumers are looking forward to buying luxury goods and services more than they did a year ago.
• Enlightened Choice: There has been a journey from blind consumption to enlightened choice. Now seeking craftsmanship, value, service, and true uniqueness.

So, what’s the next big thing in luxury marketing? Reciprocity. By reciprocating with consumers, marketers are personalizing their experience and empowering the consumer to customize as well. Nearly 60% will consider a brand when messaging, websites, and apps are tailored to them.

Quoting Cara, “Luxury is a necessity but brands are not.”  Whether in denial or not, brand loyalty is dropping, as luxury consumers have become brand immune. That’s why targeting your audience, using insights to best understand them, and tailoring your outreach is critical. Make it your business to get personal.

Are you finding that personalized messaging is helping you to gain a larger share of the market?