The luxury market never goes out of trend. It is true that the idea of luxury is constantly changing to reflect the needs of an ever changing market, but the truth is, the luxury consumer will always find new and interesting ways to disperse their dispensable income and because of this factor, the luxury market will always stay alive. The allure of the luxury market is that it doesn’t limit itself to a specific group of customers – anyone of any income level is inclusive in the market and therefore, the market reach is really, unlimited. Instead of opting for large expenditures such as luxury cars and designer jewelry, they tend to indulge in small luxuries which are functional and subdued.
Aspiring entrepreneurs can seize this new luxury market and capitalize upon the many opportunities that it presents. Here are some tips to get you started.
Understand show-rooming & web-rooming
Show-rooming is the act of examining a product physically before the purchase while web-rooming refers to conducting research on the product prior to purchasing it. The luxury good consumer who belongs to this new luxury market is bound to follow both these steps, but due to the high cost of the product the consumer may want to physically examine the goods – try on a piece of clothing, feel the texture of a couture handbag and try on an expensive watch.
That being said, the luxury buyer belonging to this specific category is becoming increasingly aware of price awareness. Due to this factor, the off-price luxury market is also on the rise. One often finds consumers arriving with large lists in foreign countries, looking to get their favorite brands for cheaper. While people may examine a luxury item from a local luxury store, they are more likely to make their purchases off price or through an online deal.
A continuation of the earlier point. Although enamored by expensive designer brands, people are constantly hunting for bargain prices. The surge of sample sale sites such as HauteLook.com and Gilt.com and discount voucher sites such as LivingSocial.com and Groupon.com proves this fact. It has also been noticed that instead of opting for an expensive spa experience, people are more likely to opt for a manicure or a pedicure.
Free delivery & free returns
The new luxury market appreciate savings and they enjoy a good deal when they see one. Special perks that come with purchasing luxury items such as free delivery and free returns appeal very much to this specific target market.
While some vendors are not huge fans of these particular features, it is fast becoming the norm. sooner or later everyone will have to comply as the market demands it and would not opt for a brand that does it otherwise.
Think of yourself – would you not be more likely to purchase more items if there was a free return policy? Would you not be enticed into buying if free delivery is promised? A combination of this would be resistible for the customers and is bound to have them purchasing more.
There’s nothing like a tailor made product that would scream luxury. Individual personalized tech gadgets are on the rise and people are willing to pay for them. Personalize your products or services to a point that they feel that it is a product that had been made exactly as per their requirements which will also give them a warm glow of being pampered and looked after.
Luxury purchasing abroad
In order for your brand to be established abroad, your brand awareness should have reached that specific market. Selling for foreign consumers is a different ball game altogether which must be done with care. People are more cautious when it comes to purchasing foreign goods and services and therefore are more alert and will read up and compare many products prior to going in for the kill.
Understanding these trends is important for understanding the luxury consumer and how to therefore approach the newly emerged luxury market to gain the optimum results.