Ledbury Research

Luxury marketing: the importance of understanding consumers

Isaac Mostovicz writes that that it is important to for luxury brands to understand their different global consumers...

I have often argued that for luxury marketers to be successful, they should apply different positioning to similar products in order to fulfill consumer’s varying expectations of how a particular product is meant to help them represent themselves and reflect their life goals.

To better understand the different ways in which consumers reflect on products, I developed the characterization of two personalities – Theta and Lambda – and argued that marketers should take both into account when planning a campaign.

That is why I was interested to read that a presentation made at the Luxury Briefing World Summit 2011 by Ledbury Research argued for the need for luxury brands to try and understand their consumers better, saying that:

“…Luxury brand marketers need to stop thinking of the affluent population as one group and try to understand the different cultural aspects, lifestyles and spending habits at play within the various levels of the world’s wealthy.” (Luxury Daily)

The presentation argues that the wealth landscape of the world is changing, and that brands need to alter their marketing campaigns and stores accordingly. For example, Asia-Pacific is starting to take a larger share of wealthy consumers, whereas the number of millionaires in Western Europe is declining.

James Lawson, the founder and director of Ledbury Research, said at the summit:

“The first thing is to think about your marketplace and avoid the trap of talking about the wealthy as one population too much… the group is large, and I encourage you to think of them as many different segments.”

This is important as there are key differences between luxury consumers in the same countries, and even more variants when we consider consumers globally.

I think that more and more we will see brands who take the time to understand their varied sets of customers – whether the differences between Theta and Lambda personalities shopping in the US, or the differences between first and second generation wealthy clients in the United Arab Emirates – reaping the rewards.

Fructuosa Almadin Luib says of this article...

“A diamond is forever.” ~ De Beers

Who can forget that catchy phrase? 😉

You say of this article...

Bookmark and Share