Having navigated significant volatility over the past decade, luxury brands have an exceptional opportunity to continue to capture growth over the next.

In order to do so, they must truly understand their consumers – and recognise how they are changing. They are evolving in terms of their purchasing behaviours, the drivers of their decisions, and the way in which they want to be engaged with – most notably in digital channels.

In the ultra-competitive world of luxury goods, deeper insight on your consumers is an essential component to creating value, and protecting the brand heritage.

Executive summary

Decision drivers

Impulse is still the dominant driver of luxury purchasing decisions. But behind this are additional drivers around trend, routine, and the change in circumstance of the high-earning consumer

  • Build excellence in customer insight and service
  • Challenge your existing consumer segmentation assumptions

Channels

The inevitable flow of the digital tide continues, and the real risk for luxury brands is that they are left behind if they cannot find the right place for e-commerce in their business strategy

  • Make the virtual window as luxurious as the physical window
  • Find mechanisms to make omni-channel value accretive and brand protective

Digital & Social

As the high-earning consumer continues to be digitally engaged, and the cohort of millennial luxury consumer grows, the use of digital marketing is an essential tool in the luxury brand armoury

  • Develop and innovate the 'digital frame' to deliver true value in the experience
  • Ensure alignment between brand and social strategy

Gifting

Buying for others is an essential component of the luxury consumer's share-of-wallet. Gifting offers luxury brands new entry-point opportunities and greater sales potential

  • Make the gifting strategy year-round – not just seasonal
  • Aim to develop one-to-one gift marketing to specific customers

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