Luxury is an elusive concept. It can be defined as a high price or high quality, but there are many other factors that contribute to its value.
In this guide, we'll introduce you to the world of luxury and help you understand how to market your product or service to this highly lucrative audience.
What is luxury?
Luxury is a broad term that refers to products or services with a high price tag. These items are often considered “aspirational” because they are expensive and out of reach for most people.
However, that doesn't mean everyone who purchases them isn't fully aware of their cost – in fact, many customers will often pay more for these items than they would for less expensive products.
In the luxury market, there are many factors that influence customer behaviour. Here are some of them:
Luxury consumers are brand loyalists. Luxury brands tend to have loyal customers who stick with them for many years — often for life — because of the quality and prestige associated with their products or services. Some luxury brands even offer lifetime guarantees on certain items such as jewellery or handbags.
Luxury customers are willing to pay more than an average person would for an item because they believe it has better quality and value than other products in its category. They also want to show off their wealth by wearing high-end clothing or accessories that cost thousands of dollars (or more).
Luxury brands rely heavily on word-of-mouth advertising because their customers often tell their friends about the products they've purchased from these brands before — which leads to more sales!
They know exactly what they want. The luxury market is not for the faint of heart. Luxury consumers are not looking for something that will be “good enough” or “close enough.” They want only the best, which means that they are willing to spend more money to get exactly what they want — even if it means waiting longer for delivery or having fewer options than their non-luxury counterparts enjoy.
Luxury shoppers are value-conscious. They want to get the most out of their money, but they also have high expectations when it comes to quality and service. They want products and services that offer them something they can’t get elsewhere – whether it’s a unique experience or high-quality materials or craftsmanship. This is why brands become synonymous with luxury – because they offer something unique that consumers can’t get anywhere else.
Luxury buyers are different. They're often affluent and educated, with high incomes and plenty of disposable income. They also tend to be older than the average consumer — age 45 or higher — and they're more likely to be married than single. These customers have a great deal of influence over other family members' buying decisions, so they're important targets for marketers trying to reach families.
How to attract customers in the luxury industry?
The key is to understand them and deliver a solution that meets their expectations. Luxury brands have great potential for growth, but only if they can stand out from the crowd.
Luxury consumers are looking for something more than just the product itself: they want an experience that will make them feel special and unique. They expect high service quality and want to be treated as individuals.
They value the exclusivity and uniqueness of products and services. Moreover, they appreciate being offered something exclusive that other people cannot get (e.g., an invitation to an exclusive event).
In order to attract customers in this segment, luxury brands need to focus on creating differentiation by offering something new, innovative or exclusive.
In the luxury market, there is no such thing as a cookie-cutter approach. Each client has their own unique set of needs, but there are a few universal principles that apply to all luxury brands.
Here are five tips to help you attract customers in the luxury industry:
1. Create a brand story that resonates with your target audience.
2. Develop a unique point of view and identity that sets you apart from competitors.
3. Offer products and services that solve real problems for consumers.
4. Build relationships with influencers who can help spread the word about your brand's products and services.
5. Build trust through transparency and authenticity