Professional Documents
Culture Documents
Luxury Segment
Luxury Segment
https://shodhganga.inflibnet.ac.in/bitstream/10603/112257/11/11_chapter-3.pdf
Segment 2- ‘High income not rich yet’ (HENRY) or New age HNI’s
Segment 4- Traditionalist
“Ultra HNIs” and “New age HNIs” look for propositions that
have ‘cultures’ or stories that live behind their
products - thus even a local brand that is from its
place of origin (ex: shopping in a flea market of a
different country) gives opportunities to possess
objects /their stories and lends them a feeling of discovery.
Hence, brands that reflect a sensibility of ‘discovery’ of luxury are
preferred.Ex: Diptyque candles defined as “A unique, entirely
manual know-how. Each of the nine steps of production are
carefully studied to result in excellence. The candles are
available in a rare choice of around fifty scents, inspired by a
childhood memory, nature or journeys”
With at least two types of psyches at play – those who have ‘been there and done that’
(segment 1) and those who are ‘enthusiastically exploring’ (segment 2 and 3), many product
niches are emerging to attract their attention. These categories provide both segments a way
to express themselves and their ‘sensibility’ towards wealth.
https://440industries.com/market-segmentation-in-the-fashion-industry/
Allow for brands to deliver a fashion statement that mixes both mass-
produced and prestigious clothes to obtain a mix-and-
match approach. As opposed to a “total look” customers can decide
to purchase a very high end, expensive items and pair them to more
affordable items from ‘lower’ fashion segments.
This category of luxury, in fact, was created by studying the behaviour of
rocketing consumers. Rocketing consumers trade off the purchase of
lower-end products in order to buy top-tier products in other categories.
Masstige, therefore, is a product category which was created as a
response to the complex relationship which is being developed between
the mass market and the luxury category. Further sub-segments can be
identified in the Masstige category, based on how these products interplay
with customer motivations.
Entry Lux (Entry Level Luxury): this refers to entry-level, lowest-
priced models for brands normally associated with luxury, like BMW
city cars. This category allows companies to have a window of
opportunity to start a relationship with a customer. By establishing
this connection early, the opportunity to maintain customer loyalty
increases.
Masstige does not engage with the real jet society which instead looks for
an opportunity for true differentiation from any form of mass experience.
PRICE BASED
https://editorialexpress.com/cgi-bin/conference/download.cgi?db_name=ACEI2014&paper_id=141
https://www.acrwebsite.org/volumes/6468/volumes/v13/NA-13
ADVERTISING
Stay at Home
Even though these women have no intention of working, they may at one time have
been in the workforce, either before marriage or thereafter. They have no desire to
change their life patterns, but some of them perceive it to be fairly limited. They are
the oldest segment with more than half of them being over 50 years. This segment
makes up approximately two-thirds of the total housewife segment.
This segment (based on age and social class) is likely to have less than high school
education. It predominantly belongs to lower or working class (Coleman 1983). The
lifestyle of this group is mainly traditional. Their lives are primarily bound by family
and children. They have a somewhat lower self-concept and a defeatist attitude.
They may sometimes long to be in the working woman's shoes in order to achieve
self-fulfillment, may envy the latter's wardrobe, stimulating life and independence. On
the other hand, they may perceive working women to be neglecting children and
housework. They may describe themselves as kind, sociable, below the average in
dominance, intelligence, broadmindedness and a sense of humor. Their buying style
does not permit much advance planning. They are cautious and brand loyal. They
have a mild interest in style and admit being persuasible. They are found to be far
less involved in financial activities than the other segments. They are the heaviest
viewers of daytime TV, second to "plan to work" in primetime viewing and listen to
very little radio.
Based on the preceding description, the following Rokeach values were identified by
the focus group to be important for this segment.
Terminal Values Instrumental Values
-Family Security -Loving
-Comfortable Life -Self-Controlled
-Self-Respect -Cheerful
-Salvation -Forgiving
-True Friendship -Obedient
-National Security -Helpful
-Inner Rarmony -Polite
Plan to Work
Some of the 'plan to work' housewives find that being a homemaker is personally
rewarding. They are committed to their role as housewives but they also like to earn
money. The plan of the working housewife carries some characteristics of the career
woman. They make up the youngest segment with a median age of 32 mostly in the
range of 2524 years of age. They are probably similar to Venkatesh's liberated group
with few of the traditional/moderate values thrown in.
The educational profile of plan-to-work women is similar to just-a-job and career-
oriented segments. They are slightly more likely to have graduated from college and
to have completed high school education than just-a-job women. Assuming that most
marriages take place into the same social class, because of the educational
characteristics, it may be assumed that this group of women would mainly belong to
middle and upper middle classes.
Women in this segment are athletic, cultured and energetic. They also allocate time
for personal gratification and future career development. Their sense of the self is
expressed in wanting to appear neat and attractive for self-pride. These women are
a little more impulsive than "stay at homes". They are involved in financial activities
similar to career women but to a lesser degree. They take an active role in shared
decisions in the purchase of big ticket items such as cars. They are the heaviest
viewers of primetime television and second heaviest readers of magazines (next to
career women). This group is second behind career women in the purchase of
convenience and time saving appliances.
Based on the above stated description from Bartos (1981), Venkatech (1981), and
Coleman (1983), the following Rokeach Values were identified by the focus group for
this segment.
Terminal Values Instrumental Values
-Comfortable Life -Broadminded
-Exciting Life -Responsible
-Social Recognition -Ambitious
-Family Security -Loving
-Self-Respect -Capable
-Sense of Accomplishment -Imaginative
-Equality -Intellectual
-Forgiving
Just a Job
This group makes up about 60% of the working women. They are not terribly
involved with their jobs, but either enjoy the social aspect of self-fulfilLment of
working, or work due to economic necessity. They usually finish high school and
possibly some college, although to a lesser degree than plan to work or career
women. The median age of this group is about 36, but a high ratio fall into ages
below 25 and over 50, indicating a trend toward remaining at home during the child-
rearing years which is confirmed by Yankelovich's claim that there is a movement
from "plan to work" to the "just a job" category. Just a job women fall below career
women in household income, but based on education/occupation factors, we may
expect them to be found mainly in the working and middle classes. They correspond
to low-occupational status category of Schaninger and Allen (1981).
This group appears to be split be been traditional/moderate and liberated viewpoints.
The just a job woman may be described as trustworthy, kind, refined, stubborn,
broadminded and affectionate. They are more concerned than career women with
economy but are the least brand loyal and most experimental. They are responsive
to new products and competitive promotional campaigns. They along with career
women are likely to buy on impulse. They make an average use of financial services
except investments where they are below average. They are independent decision
makers in the purchase of large ticket items such as cars. Just a job women are a
captive market for those using radio as an advertising medium.
Based on this information, the following Rokeach Values were identified by the focus
group for this segment.
Terminable Values Instrumental Values
-Comfortable Life -Broadminded
-Exciting Life -Cheerful
-Sense of Accomplishment -Self-Controlled
-Social Recognition -Independent
-National Security -Responsible
-True Friendship -Polite
-Forgiving
-Honest
-Loving
Career-Oriented Women
They are professionally or technically trained women with a future in their career.
Over 55% of them have attended or graduated from college. The median age of this
segment is the same as that of "just a job" but they are more likely to be between 25
and 34 years of age. The implied viewpoint of this segment is likely to be
liberated/moderate under the Venkatesh study. This group is the most affluent with
60% of those married to the most achieving men. It may be assumed that they are
found in the middle, upper middle and lower upper classes (Coleman 1983). This
group corresponds to high occupational category of Schaninger and Allen (1981)
and Joag et al (1985).
Career women enjoy home surroundings a characteristic of the higher social classes
and are brought up with the expectation of living in an orderly fashion. They usually
purchase items that allow for convenience without loss of quality. The career women
plan their shopping (more so on big ticket items) probably due to time constraints
and are cautious and brand loyal. They do impulse shopping in order to reward
themselves. They take a strong interest in grooming and style, mostly to maintain a
social image. They are athletic and health conscious and are principal consumers of
natural cereals.
Career women are the most active users of financial services and are the most likely
to have purchased themselves the big ticket items such as a car. They are a prime
target for travel both for business and pleasure. They are not heavy viewers of
television. They are the heaviest readers of magazines and newspapers, the most
active listeners of radio and heavy viewers of outdoor advertising. They may
describe themselves as having a strong self-image, trustworthy, kind, refined,
broadminded, efficient, intelligent, frank, self-assured, relaxed and creative.
Based on the above stated description, the following Rokeach Values were identified
by the focus group for this segment.
Terminable Values Instrumental Values
-Comfortable Life -Imaginative
-Exciting Life -Intellectual
-Sense of Accomplishment -Independent
-Self Respect -Ambitious
-Social Recognition -Broadminded
-Inner Harmony -Capable
-Mature Love -Honest
-Wisdom -Loving
-World of Beauty -Self-Controlled
-Freedom -Responsible
MEANS-END CHAIN MODEL
The means-end chain model establishes a framework to explain how products are
the means to consumers' achievement of desired values. This model offers
marketers a method of positioning products by associating product attributes
(means) with benefits (consequences) that lead to the satisfaction of values (ends).
The means-end model developed by Gutman (1982) has four underlying
assumptions:
1. values are dominant factors in the purchase pattern of consumers
2. consumers group products based on function to satisfy values
3. all actions have consequences (desirable or undesirable)
4. there is a link between consequences and product attributes
Gutman's model is developed on the premise that there are two major links in a
consumer's cognitive map:
1. values are linked to consequences since consequences are given positive or
negative valence depending on values
2. consequences are directly connected to product attributes since consumers will
purchase the products they perceive will produce desirable benefits (consequences)
The linkages when combined have a common terminus i.e. values. Therefore, the
basis of the model becomes the product attribute-consequence-value construct.
Based on the preceding model, we propose that the grouping of Rokeach Values
within each of the four Bartos' segments would allow concentration on the
centerpiece of the model i.e. consequences, in the development of advertising
strategy for the target segments. Values, having been predetermined for a segment,
become known variables with consequences and attributes being unknown. By
utilizing techniques such as repertory grid (Kelly 1955), laddering (Gutman and
Reynolds 1979), and product categorization (Gutman and Reynolds 1977, 1979),
marketers can focus on the desirable consequences resulting from appropriate
product attributes. The advertising message can emphasize the attributes that will
help achieve valued end-states and ultimately lead to customer satisfaction.
ILLUSTRATION OF THE MEANS-END CHAIN MODEL
To illustrate the model incorporating the previously mentioned value groupings by
segments for women's market, two products have been chosen: fashion clothing and
automobiles. The set of matrices included at the end of this paper should be
referenced to facilitate an understanding of the following analysis.
Fashion Clothing
To draw out the differences among the segments based on the grouping of values,
consequences were held constant for the four segments. Values were taken from
each segment based on a subjective association with the product class. Assuming
that respondents were subjected to a method such as the repertory grid to ascertain
level distinctions, a set of consequences similar to those in the attached matrices
would be developed. A +1 or -1 is assigned to show the relationship between
consequences and values.
In the case of fashion clothing, the following consequences were developed based
on a focus group discussion: self-expressive, feel unique, easy care, affordable,
personal comfort, practical/lifestyle and classic. These consequences were related to
the respective values for each segment. A perusal of this set of matrices shows that
for the stay at home segment, the highest consequence is that of easy care which is
related to the values of comfortable life, self-respect and inner harmony. The other
minor consequence is affordable which is related to the values of comfortable life
and self-control. The "plan to work" segment is high in the consequences of feeling
unique and being self-expressive; these consequences are tied to the values of an
exciting life and self recognition. The "just a job" group also prefers the
consequences of feeling unique and self-expressive. However, the strongest link is
with the value of an exciting life. The "career" segment puts a high emphasis on
enjoying a classic look, feeling unique and being self-expressive due to the values of
being intellectual, imaginative and having an exciting life.
For this product, situations had to be considered as inputs into the system due to the
different occasions for which one may purchase fashion clothing. Therefore, the
second set of matrices (one for each segment) ties consequences to the situations.
Some situations for which women may purchase fashion clothing are listed at the top
of the second set of matrices; these are: leisure, sports, in the home, entertaining,
appointments, party, evening and meeting. In the matrices the consequences are
listed with the algebraic sign determined in the first set of matrices. To indicate the
consequences that are relevant to specific situations a 1 is placed in the
corresponding square The column for the situation of interest to the marketer is
transferred to the top headings of the third set of matrices which connects the
consequences (benefits) to the relevant product attributes. Assuming that a marketer
were interested in gearing an advertising message to the "stay at home" segment for
fashion clothing to be worn in the home situation, the product attributes to be
stressed would be wash and wear, without detailed design and be flexible (i.e. can
clean in, lounge in) connecting to the consequences (benefits) of easy care, personal
comfort and practical lifestyle. An advertising strategy geared to the "plan to work"
segment for fashion clothing to be purchased for a party situation should emphasize
the attributes of separate garment, pieces to mix and match tying to the benefit of
feeling unique; and also highLight new colors and wash and wear for consequences
of self-expression and easy care respectively.
For the situation of entertaining, the "just a job" group is interested in receiving the
same benefits as the "plan to work" group is for the party situation. However, the
relevant benefits (consequences) have been ranked differently, exhibition a
difference in priority. Therefore, the advertising strategy for fashion clothing aimed at
the "just a job" segment would first emphasize new colors, then wash and wear,
followed by separates for entertaining. Using the example of an evening out situation
for the "career" category, a marketer would target this segment best by featuring
product attributes of high styling, followed by current fad and new colors, tying to the
benefits of classic. feeling trendy and self-expressive.
https://blog.globalwebindex.com/chart-of-the-week/luxury-market-2019/
We found four significant clusters and the attributes of these clusters were consistent with results of
correlation analyze. Accordingly we determined that younger and single females were more close to
fashion conscious, hedonic and price conscious consumers that they agreed to buy apparel products
to keep latest fashion trend with lower prices and they agreed to like shopping and buying apparel
generally. So younger and single females were clustered in hedonist-fashion keepers and price
keepers. On the other hand, older and married ones were found as more perfectionistic and brand-
loyalty consumers that they made their choices to buy the best product and their favorite brands in
apparel products. In this context, middle-aged and married females were clustered mostly in
perfect-brand lovers. Confused-impulsive buyers were more close to females that older, married
with no job. Educated and married females with high income were more close to brand loyalty
conscious that they were clustered in perfect-brand lovers, too. Single females without a job mostly
were clustered in price keepers. Females who bought fashion apparel products more frequently to
keep latest fashion style and preferred to pay lower cost for apparel products, clustered in hedonist-
fashion keepers. Females who paid costs via credit card and had more installment, were clustered in
confusedimpulsive buyers.
1 st Cluster: Perfect-Brand lovers: Females who prefer the most qualified apparel product to be
perfect, also prefer generally branded apparel products in the market. These females are clustered
in first cluster that called as perfect-brand lovers. These females prefer to buy expensive fashion
apparel products with high quality and they always keep their usual branded apparel products in the
market. In addition, they have favorite brands for apparel products and they generally keep buying
their favorite ones. Perfectprefers buying apparel products without any price anxiety. Females who
are middleaged and have higher income mostly clustered as perfect-brand lovers. In addition, they
have higher education degree and they spent much more money for fashion apparel products. These
high educated middle-aged working females are determined as consumers who liked buying perfect
qualified fashion apparel products and perfect branded products. Perfect-brand lovers are the most
loyal consumers in a fashion apparel market because they always prefer to buy the same branded
fashion apparel products in the market. If they finds a perfect brand for themselves in a fashion
market, they will buy it again and again. Accordingly, the sustainability of high quality of fashion
apparel products is so important to attract and keep perfect-brand lovers in the market. 2nd Cluster:
Hedonist-Fashion keepers: These females like shopping for fashion apparel products and they keep
their style for clothing in general. So they prefers to buy the latest fashion apparel products and also
they like to keep fashion. Accordingly this group have the highest value for fashion keepers and they
mostly like buying fashion for fun and satisfaction. Females with middle income are mostly clustered
in this sub-market. Also these females mostly use credit-card during shopping. Hedonist- spending
for a shopping. So it can be said that hedonist-fashion keepers are the most time spending females
for buying fashion apparel products in a Turkish apparel market. interested in brands as much as
perfect-brand lovers but they almost spends money for fashion apparel products as much as them. 3
rd Cluster: Confused-Impulsive buyers: Females who are confused buying apparel products, are also
impulsive buyers in Turkish fashion apparel market. They impulsive buyers for fashion apparel
products. They are mostly elder females with no ying fashion apparel fashion apparel products. They
just buy fashion apparel products impulsively but no frequently. 4 th Cluster: Price keepers: Females
who are more sensitive for prices and costs in fashion apparel market, are clustered in price keepers
segment. They prefers to buy lowest priced apparel products in the market and they always watch
out for discounts of fashion apparel products. Price keepers are found as females who pay less Price
keepers like fashion when the price is lower in Turkish fashion apparel market. These results were
seen coherent with the prior researches that determined four sub-groups in this paper had similar
and expected characteristics with other studies in the literature. As it was expected brand loyalty
was found as an important factor in brand was a key factor in decision-making styles and most of
studies has showed that brand loyalty was a significant factor in buying decision. In this context,
perfect-brand lovers were found as coherent with the prior studies. Because being brand loyalty was
found as important determinant in this paper like as others. For instance, Oh and Fiorito(2002)
found out that females were segmented into different sub-groups via their degree of brand loyalty
and price sensibility in Korea. In this paper it was found out that -Turan(2012) found out that quality
and brand loyalty had been a significant and positive relationship that the more quality brought
more brand loyalty. Here, it was found out that Turkish females who paid more attention to buy the
most qualified fashion apparel products, were also brand loyal and brand keepers. In addition,
fashion was found as another basic factor in this paper that fashion keepers had a similar
characteristics with other studies in the literature. For example, Kim(1988) determined that fashion
conscious buyers usually paid no attention for price and they were interested in buying fashion. So
this paper found out that Turkish females who were hedonist-fashion keepers were not interested in
price and they liked buying fashion.
https://440industries.com/consumer-segmentation-in-the-fashion-industry/
Customer profiling directly influence design and the different clothing lines
available in stores. Each season, these customer profile sheets evolve and have to
be updated.
To be effective, marketers rely on multiple tailored personas: from 2 to 3 for an
emerging brand and 5 to 10 for established major brands. The strength of fast
fashion brands like Zara, H&M or Uniqlo is that they cater to every client. For
instance, Zara has a staggering 10 to 15 buyer personas.
Buyer personas are first crafted from internal data, such as sales data, social media
reports and analytics but also customer surveys and one-on-one interviews. The
other part relies on external data like industry market studies and specialized fashion
publications.
HAUTE COUTURE
Some celebrities especially for the red carpet, even not buy this couture,
but the company give them for promote their product.
This couture gives people dream, even at the fact the people can not buy,
but they can buy the other product for the same brand, i.e, you may not buy
hermes bag, but you can buy other hermes affordable product.
1. Creativity + Industrialization.
2. 3 to 5 times the mass market price product, (may be you can remove
one zero).
3. Use for wider occasions.
DIFFUSION
Okay, that three price segment is for the highend market, characterized by
few customers, fashion designer, luxury brand, global exposure. Lets move
to another segment:
BRIDGE
This segment connect the highend market with the mass market. This mid
range was born in USA within American Dept Store
1. Right marketing mix, give the customer a level of crativity, but also
the right value of the money, right delivering
2. Offer customer a better delivery, better fit.
3. Price: more affordable then high end
4. Use: suitable for daily use
5. A lot of fantasy name (not like high end brand that always connected
to the name/characteristic of the designer)
MASS MARKET
Example:
.H&M
Inditax
Zara
Massimo dutti
creativity
quality
Haute Couture
Chanel
Dior
Givenchy
Ellie Saab
Ralph Lauren
Laura Biagiotti
Chanel
Dior
Saint Laurent
Bridge
Price: Right value for money, 2 to 1,5 times higher than the average market
price
Creativity: Trendy not too radical/extreme products
Quality: Production outsourced, right delivery in stores
Use: Mainly daily occasions
Target: Usually a mix of wholesale and retail distribution,both international
and local brands with local customers
Idea: Connecting the high end to mass market. Right marketing mix
(product, communication, service)
Bridge connects High End market to Mass market. Bridge is updated but
not as avantgarde as tops. Was born in USA in Department stores. There
are many fantasy names and it connected more to a lifestyle than to a
creator. many american designers are positioned in the Bridge segment.
Companies:
Max&Co
Emporio Armani
Diesel
Coach
Massimo Dutti
Mass Market
Bershka
Zara
H&M
Inditex
Mango
Mass market sets a good combination of affordable prices with a fashion
experience, typical of the high end of the market.
https://www.diva-portal.org/smash/get/diva2:971888/FULLTEXT01.pdf
FACTOR ANALYSIS
CLUSTER STATISTICS
Wiedmann, Hennigs, Siebels Study results 1- Materialistic: this cluster had the most positive attitude
toward luxury objects. They believe materialistic and usability are important. People in this cluster
like to have luxury products in their life. (Wiedmann, Hennigs, & Siebels, 2009) 2- Rational
functionalist: this cluster had the highest mean rating of all groups of quality. Hedonic value is being
considered as unimportant value, which is unlike other clusters. People in this cluster had superior
quality standard. Same as group one they believe individual needs are far important that having the
others good attention. (Wiedmann, Hennigs, & Siebels, 2009) 3- Extravagant prestige seeker: they
are prestige seekers. They pay more attention to the social value aspect of luxury. In this cluster,
prestige value is followed by Hedonic value. When they want to buy something, it is important for
them to check which brand influence others more. (Wiedmann, Hennigs, & Siebels, 2009) 4-
Introvert Hedonists: they believe luxury products shouldn’t be mass-produced. The two most
important values they perceive in this cluster are Self-pleasure and life enrichment.
https://dergipark.org.tr/tr/download/article-file/669399#:~:text=Results%20of%20analyses
%20showed%20that,keepers%20in%20female%20apparel%20market.
https://www.agilitypr.com/pr-news/public-relations/future-luxury-marketing-5-consumer-types-
trends/
Surveying the luxury buyer
Mindshare’s research identified five main types of luxury consumers,
segmented across different age groups, psychological motivators, media
habits, and more. Of the 1,600 luxury consumers surveyed:
1) 24 percent are Strivers—they see luxury as the
evidence of success
This is one of the youngest groups surveyed: 57 percent are between
the ages of 18-34, which is the highest percentage of millennials across all
five groups. They also have the highest percentage of people specifically
ages 25-34—they make up 47 percent of the Strivers total.
Strivers are also more ethnically diverse than three of the other groups;
approximately one-third (34 percent) identify themselves with an ethnicity
other than white. In addition, they also have the highest percentage of
men of all five groups, coming in at 58 percent. As far as income goes,
Strivers are mostly middle to upper middle class at the moment, because
they’re still early in their careers—but they will eventually work their way
into the more elite income brackets.
When making purchases, Strivers are most likely to be influenced by social
media influencers, family members, and TV shows. When asked about
their recent luxury purchases, they were most likely to have bought Liquor,
followed by Fashion, Auto, and Travel.
Strategic considerations for marketers: For Strivers, focus on
communicating “the dream” and aspirations of your brand. Show that your
brand isn’t easily obtainable for just anyone. And of course, make sure that
you’re targeting multicultural consumers.
2) 16 percent are Trendsetters—they see luxury as a
way to set themselves apart
Similar to the Strivers, this group has a heavy demographic tilt towards
younger consumers, with 46 percent falling into the age group of 18-34.
This group also has the highest percentage of multicultural consumers,
with 40 percent of Trendsetters identifying themselves with an ethnicity
other than white. The Trendsetters also have the highest percentage of
consumers from the southern parts of the U.S. of all five groups, at 36
percent.
When making purchases, Trendsetters are most likely to be influenced by
social media influencers, shopping websites, and their friends on social
media. When asked about their recent luxury purchases, they were most
likely to have bought Fashion, followed by Liquor, Auto, and Travel.
Strategic considerations for marketers: For Trendsetters, it’s very
important to communicate to them early on. Show that your brand can help
them retain their leading-edge status, and put a particular emphasis on
influencer marketing in your media plan.
3) 17 percent are Aesthetes—they define luxury as the
pinnacle of aesthetics and design
Demographically, this group is where both the age ranges and incomes
start to climb higher. Only 19 percent of Aesthetes are between the ages
of 18-34. Instead, there’s then an even split among the other age groups: .
20 percent are ages 35-44, 21 percent are ages 45-54, 21 percent are
ages 55-64, and 20 percent are ages 65 or higher. This Aesthetes group
a.lso has the highest percentage of women across all five groups, at 62
percent.
As far as incomes go: one-third of Aesthetes (33 percent) have an annual
HHI of $100-$149,000. After that, the next highest income grouping for
Aesthetes is at $150,000 or higher, for 28 percent of the group.
When making purchases, Aesthetes are most likely to be influenced by
brand websites, online reviews, and search. When asked about their recent
luxury purchases, they were most likely to have bought Travel, followed by
Auto, Fashion, and Liquor.
Strategic considerations for marketers: For Aesthetes, it’s very
important to communicate the exemplary design and craftsmanship of your
products. Brands should associate themselves with artists and other
influences in creative fields, and put a particular emphasis on engaging
older consumers.
4) 23 percent are Only the Best—they see luxury as
unsurpassed quality and service
Demographically, this group has some similarities to Aesthetes, except
that they start to skew even older: more than one-fourth (26 percent) are
ages 65 or older. A little over one-fifth (21 percent) are ages 45-54, and
then 20 percent are ages 55-64.
As far as incomes go: 28 percent of this group has an annual HHI
of $150,000 or higher. After that, 27 percent come in at $100,000-
$149,000, and then 26 percent at $75,000-99,000.
When making purchases, they’re most likely to be influenced by search,
online reviews, and recommendations from their friends. When asked
about their recent luxury purchases, they were most likely to have bought
Travel, followed by Auto, Liquor, and Fashion.
Strategic considerations for marketers: It’s crucial to communicate the
performance and leadership of your brand. Focus on your product or
service’s experience in its respective category, and put a particular
emphasis on engaging older consumers.
5) 19 percent are Comfort First—they see luxury as a
meaningful way of life
Demographically, this group has the highest percentage of people ages
65+ out of all five groups, at 42 percent. Following that, only 9% of this
group is ages 18-34—the lowest millennial percentage across all five
groups. The Comfort First group first also has the highest percentage of
white consumers across all five groups, at 81 percent.
As far as incomes go, they also have the highest percentage of
consumers with an annual HHI of $150,000 a year or higher, with more
than one-third (35 percent).
When making purchases, they’re most likely to be influenced by online
reviews and brand websites. When asked about their recent luxury
purchases, they were most likely to have bought Travel, followed by Auto,
Liquor, and Fashion.
Strategic considerations for marketers: Unlike some of the
groups, brands can and should downplay status and image as part of their
communications. Instead, they should focus on communicating the comfort
and ease that their products or services provide. And of course, they
should engage older consumers.