Characteristics Of Target Consumers Of Luxury Goods

The luxury industry is the most famous industry of judging people by their appearance, but is it true that the salesperson in luxury industry really understands their target customers? The latest answer from the Epsilon and Luxury Institute, a luxury research consultancy, is that the answer is No.

It is reported that most brands lose 80%-90% customers every year, and only 10%-15% customers can maintain good relationship with sales staff.

Milton Pedraza, chief executive of Luxury Institute, says luxury products lose about 50% of their customers every year, not because of product problems, but often because sales staff play a leading role.

So the question is, how should the target customers be classified? What are their characteristics?

The report divides luxury target consumers into four groups:

Aspirational Shopper (consumers who dream of luxury goods): most of these groups hope to have a luxury item, but most of their consumption comes from discount stores or Flash shopping websites. Their consumption is also mostly non top luxury brands and expensive luxury goods. Luxury brand cosmetics series are often their / their favorite.

Moments of Wealth (consumers who buy luxury goods): this part of consumers is not a loyal consumer of luxury goods, its frequency of purchase is relatively small, often looking at a luxury need to save money to buy, so repeatedly.

(consumers of fashion lovers): this part of consumers want to give people the appearance of fashion and keep up with the trend. They are more interested in everything than the house.

On the other hand, it is because their / their spending power can not afford to build a luxury house, but there are more than thousands of luxuries to consume.

True Luxe ("tyrant" consumers): they / they do not have to worry about financial problems at all. Buying luxuries is commonplace.

In the above four categories

Aspirational Shopper is easy to become Moments of Wealth and Dressed for the Part type consumers through age and job change.

So, what is the most concerned issue of luxury goods? What are the characteristics and consumption patterns of True Luxe? A group of analysis is made by Epsilon Epsilon through the consumption behavior of 30000 B2C luxury e-business websites consumers who spend more than $30 thousand on luxury items each year, and spend more than $1200 each time.

The main features of True Luxe have overturned some popular or media recognition of luxury consumer groups: 40-50 years old, women, keen on fur and local tyrants.

In fact, the consumers of True Luxe are mainly male, and according to the definition of Niches 3, most of these consumers have the characteristics of health care, love sports, travel, art and home products.

Also worth mentioning is that less than 1/4 of the True Luxe consumers will choose luxury electric providers, experience and interaction are the kind of people eager to get in the consumption, which indirectly proves that the reason why the hot luxury business concept of these years is the deep-seated demand for bubble burst.