“Luxury” doesn’t mean everything it used to anymore. Mindshare North America asked 1,600 luxury adult shoppers in the U.S. to define how luxury is changing. The answers included that luxury products and services are more accessible (27%), they’re about show and not necessarily enjoyment anymore (16%), and luxury products are increasingly being produced cheaply and are therefore of lesser quality (15%). While this information does taint our previously conceived notions of luxury, the accessibility of these products does give advertisers a broader audience to reach out to.
According to the article, “The Future of Luxury Marketing," a report from Mindshare NA, luxury consumers are primarily divided into five categories and here’s how your clients should advertise to each of them:
- Strivers: those who see luxury as reflective of success. Fifty-seven percent of consumers surveyed fall into this category are 34-years-old or younger, 58% are male, and 34% aren’t white. Mindshare recommends advertising to them via social media, product placement in TV shows, and word-of-mouth. What content should your clients use? Since your client is appealing to a younger audience who wants to appear successful, spotlight how your client’s products fulfill dreams and desires that aren’t necessarily easy to obtain by the masses.
- Trendsetters: those who use luxury to stand out. Forty-six percent of those surveyed are under the age of 34, 40% aren’t white, and 36% are from the southern U.S. These consumers respond to social media and website ads. When advertising to them, advise your clients to showcase their products as cutting-edge, new, and different.
- Aesthetes: those who value luxury for its aesthetics and design. Twenty-one percent of these consumers are between the ages of 45 and 54, 20% are 35 to 44 and another 20% are 65 or older; 62% are women; and 28% have annual household incomes of $150,000 or above. Your clients should target these consumers through website and search ads, as well as online reviews. Since these consumers value aesthetics, ads should emphasize craftsmanship and quality.
- Only the Best: those who value luxury for its quality and service. Twenty-six percent of these consumers are 65-years-old and older and 41% are 45–64, and 28% have annual household incomes of $150,000 and over, 27% make between $100,000 and $149,000 and 26% have incomes of $75,000 to $99,000. Your clients should advertise to Only the Bests through search ads, online reviews, and word-of-mouth with messages emphasizing the reputation of the product.
- Comfort First: those who believe meaningful lives are those that are full of luxury. Forty-two percent of these consumers are 65-years-old and older, 81% are white, and 35% have annual household incomes of $150,000 or higher. They should be targeted through online reviews and website ads that feature products and services that offer comfort and relaxation.
Does your client sell luxury products? Discuss the five potential types of shoppers they have with them and get to work on some ads that will best reach each relevant one!