Positioning Of Luxury Goods: Local Tyrants, Dreams And Wealth

The industry is the most famous industry to judge people by their appearance, but is it true that the salesperson of the luxury goods industry really understands their target customers? The latest report of Epsilon and Luxury Institute, a luxury research consultancy, gives no answer.

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 want to have a luxury item, but most of their consumption comes from discount stores or Flash shopping luxury 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.

Dressed for the Part (consumers of fashion lovers): this part of consumers want to give people the appearance of fashion and keep up with the trend. Compared to the houses, they are more keen on all kinds of fashion, accessories and latest car models, and on the other hand, their / their spending power can not afford the luxury house, but there are more than thousands of luxury goods.

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

In the above four categories of consumer groups, Aspirational Shopper is easy to become Moments of Wealth and Dressed for the Part type consumers through age and job changes.

Typical characteristics of True Luxe luxury consumers

So, what is the most concerned issue of luxury goods? What are the characteristics and consumption patterns of True Luxe? Epsilon gives a group of analysis on the consumption behavior of 30000 B2C luxury e-commerce websites consumers who spend more than 30 thousand dollars on luxury goods each year, and spend more than 1200 dollars each time.

The main features of True Luxe have overturned some popular or media recognition of luxury consumer groups: 40-50 years old, women,

The local tyrant...

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.