According to Luxury Daily, the perception of luxury is changing as more multicultural and millennial consumers become clients of high-end goods and services, forcing brands to evolve their marketing strategies.
Luxury often leans on quality and exclusivity to justify its price points, but a new report from Mindshare finds that big-name brands are losing favor due to a seeming decline in both production methods and personal touch. To maintain relevance, luxury marketers need to think small and focus on the new influences and mindsets behind consumer purchases.
There are five key psychographic groups of luxury customers. Many of these mindsets and values exhibited by each consumer group are ingrained in their personality and shaped by the values unique to their generation and society today.
“STRIVERS” luxury customers
“Strivers”, the second most multicultural audience, link the concept and consumption of luxury to success. Typically at the start of their careers, these customers are mostly middle or upper middle class and are most apt to invest in liquor or fashion. These individuals are tuned into social media influencers and television and suggest appealing to the idea that a brand is aspirational and difficult for the masses to attain.
- 57 % Millennials (18 – 34)
- 58 % Male
“TRENDSETTERS” luxury customers
“Trendsetters” desire to be unique through luxury. To reach them put the focus on influencer marketing and speak to them early, allowing them to adopt a brand or style ahead of their peers.
- 40% Multicultural audience
- 50% Millennials
“AESTHETES” luxury customers
The “Aesthetes” are most interested in luxury for its design. More than half of aesthetes have incomes of $100,000 or more, and they are most apt to buy travel, automobiles, and fashion. These consumers consult brand websites and online reviews before buying. Luxury brands need to highlight their design and craftsmanship in marketing as well as partner with artists and other creatives to help win these customers.
- 62% Female
- Evenly divided between the age groups
“ONLY THE BEST” luxury customers
“Only the best” desire luxury for quality and service. Slightly older than the aesthetes, and have similar levels of affluence, with 28 percent making more than $150,000. Like the aesthetes, they also go for travel and auto and turn to search and online reviews to research.
To attract those craving only the best, highlight your brand’s leadership position and service experience.
“COMFORT FIRST” luxury customers
“Comfort first” luxury shoppers see luxury as a way of life and status or image is less important than comfort or ease, gravitating toward travel and auto.
- 42% – Over 65
- 35% – Income $150,000+
While this psychographics represents the mindsets of today, luxury consumer psychographics is set to change as outside factors evolve.
Too many luxury brands seem to have lost some of their lusters and 73 percent of consumers would buy premium goods instead of luxury if they perceived them to have the same level of quality. There is also a perception that luxury is more accessible and, perhaps, the definition of luxury is no longer tied to scarcity.
While glamour and style have always been at the top of luxury customers’ wish lists, today it is becoming more about brands that show soul, values such as kindness or trustworthiness. Affluent consumers have conflicting ideas when it comes to spending money in a meaningful manner and choosing brands that align with their own values.