Luxury Product Marketing: Understanding the Luxury Consumer
Wealth trends are constantly changing. While using a standard luxury product marketing strategy for every consumer may generate sales, by fine-tuning your approach you can get more business from the luxury consumer who becomes a loyal customer.
What is Luxury Product Marketing?
Luxury product marketing is the business of promoting and selling high-end products. Not only do luxury brands draw consumers in with their high-end products, but they also actively manage the perception of these products.
Luxury Goods Market Study
Revenue from the US luxury goods market is estimated to be between $85 and $100 billion annually, according to Euromonitor.
The luxury market is more relevant than ever. Over the past year, the luxury market has grown by 5% worldwide. This growth stems from the sales of three major items: luxury cars, luxury experiences, and personal luxury goods. These three items alone, account for more than 80% of the entire luxury market. Luxury car sales dominated the market in 2017, increasing by 6%. Sales in luxury experiences increased by 20% in two areas: high-end food and wine (up by 4% since 2017) and luxury cruises (up by 16%). As for personal luxury items, which are the core of luxury consumer market, sales have increased by 5%.
The best luxury product marketing efforts focus on more than just those who can easily afford luxury goods. They target every person who is willing and interested in saving up for high-end products.
Understanding the Luxury Consumer
Reaching the same luxury consumer today can be different a few months from now. Wealth changes. But there’s more to it. When you learn about the interests and buying habits of individuals, you’re able to find more ways to influence those consumers, and new ones. Knowing this information can help you find ways to generate more sales.
You might think that only affluent consumers want to purchase luxury goods. But, the truth is that there are other groups who are equally likely to purchase these products, and you can’t neglect them.
Think about the person who has been saving up for that new BMW or that new Louis Vuitton bag. All of those consumers are so drawn to high-end items, that they’re willing to save and splurge on your products. This gives you an opportunity to nurture them as loyal lifelong luxury consumers. As a result, luxury product marketing targets consumers who have both the capacity and intent to buy your products.
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The luxury market is no longer solely dependent on managing brand reputation and recognition. It’s also dependent, if not even more dependent, on understanding luxury consumer behaviors, clarifying your goals and intentions, and using this information to motivate buyers. These qualities will equip you to build a loyal customer base.
Luxury Product Marketing Questions
As you clarify your messaging, ask yourself:
What are people buying – what is the brand promise?
What are our luxury consumers interested in – causes, issues, other non-product related drivers?
How can we enhance customer profiles with wealth and interest data to reach more people who fit our buyer persona?
How did, and how are, we engaging our customers based on what we know about their purchasing influencers?
When you create luxury product marketing campaigns that are tied to the things that influence your buyers, you naturally forge deeper connections.
Adapting to Changes in Luxury Consumer Behavior
Creating a strong foundation is only the first step. There’s much more.
How do you keep that luxury machine churning?
What can you do to captivate your customers?
What methods get people to recommend your luxury brand?
How can you maintain their interest?
Luxury product marketing requires you to be nimble. It’s important to recognize that there isn’t one type of customer coming through your door. More so, they have different needs to satisfy and it is ever-changing. The wealth-profile and buying propensity of a customer today can be different next year. As a result, it is important to stay on top of the changes in the wealth and interest of your luxury consumer.
By tailoring your messaging, you’re able to communicate your mission in ways that are accessible and appealing to more individuals. You’re maintaining the mission of your brand as you continue adapting to your customers needs.
Developing targeted messaging creates a good foundation for your brand. However, by leveraging wealth data, you can see how likely your new customers are to make a purchase, and when. This means that you don’t need to keep waiting for consumers to return! You have the power to evaluate demographic data to determine what they’ll need in the future.
When your customer is about to retire, they may be more inclined to buy luxury products associated with travel. They have a greater need for it. This information allows you to create messaging that’s more personalized, for individuals and groups that have similar experiences.
Luxury product marketing, in this case, allows consumers to feel that they’re part of a novel and elite experience. Customers are that much more excited knowing that they’ll have an individualized experience.