When you think of a luxury consumer, what comes to mind? Is it a young tech millionaire? A wealthy housewife? Someone living off of a family trust fund?
At our Orlando marketing agency, we believe that if you’re dealing in luxury goods or services, it’s important to have a deep understanding of your customers – and, perhaps more importantly, how they behave in both the world and in the digital space. This is particularly true with higher-end consumers, as their discriminating taste means they have higher expectations than a typical consumer. For this reason, it’s critically important to employ expert methods to reach your ideal luxury customer.
Earlier this year, Reuters reported that the number of luxury goods purchasers increased to 330 million in 2013, and could be as high as 500 million by 2030. The article attributes this growth to rising wealth in Asia, Latin America and Eastern Europe. And, more than half of these purchasers are age 49 or older. Just 13% are between ages 13 and 33.
Contrary to what one might think, an article in Forbes points out that luxury consumers love to shop at Costco, which is a far from glamorous experience. However, alongside the rows upon rows of bulk toilet paper and paper towels, Costco also sells things like vacation packages, high-quality electronics and expensive watches. It’s not exactly what you might picture the luxury shopper doing, but it’s important to understand this mindset and behavior. The reality is that even when these consumers are spending a lot of money, they’re still also always looking for a deal.
Many luxury consumers don’t even leave their homes to shop. According to Luxury Daily, in Q4 of 2014, 92% of affluent shoppers made a purchase online. Think With Google reports that in mature markets such as the United States, 69% of all luxury customers searched online before making a purchase, and in newer markets like China, Brazil and Russia, 92% of luxury consumers went online to search before making a purchase.
Knowing that the market is rising and that people are using the Internet to guide their purchases and, in many cases, to actually make purchases, it’s increasingly important for luxury marketers to realize that their digital presence is a reflection of who they are as brands. Every time a person has a bad experience with your website or can’t read your email because your business’s emails aren’t optimized for mobile, you’re putting up a figurative wall between your brand and your customer. [quote]Particularly when dealing in luxury goods, the experience is part of the decision-making process.[/quote] It’s hard to convince someone you’re a luxury retailer if your website looks like something you could have designed with clipart on Geocities in 2004.
It’s also becoming more and more important for luxury marketers to engage their communities online. If they’re not actively sharing content and jumping into the conversation, they may be costing themselves thousands of dollars in sales each year. The Internet is full of rich data as to how people are using their luxury products and services, and conducting a social media listening audit is typically much less expensive than a focus group.
If you’re a luxury retailer and you’ve decided it’s time to finally take your digital presence to the next level, let the passionate folks at our Orlando ad agency help you! From business planning to branding to execution, we’re here to help you revamp your marketing plan, or can even build it from the ground up! Contact us today!
