luxury experiences

The importance of design when attracting luxury consumers

Isaac Mostovicz writes that store design is crucial in attracting a luxury consumer base...

I have written previously about how important it is for luxury brands to be innovative and creative, both with their products and the way they market themselves.

Since buying luxury items is often as much about the experience as about the values of the brand, store design is crucial in attracting, and retaining, a luxury client base.

The Louis Vuitton maison that is due to open in Singapore this month will be on a custom built island, and is a prime example of the need to innovate when attracting customers.

Louis Vuitton Singapore Maison

As this recent article on Luxury Daily points out, more and more people have taken to the web for shopping, so luxury brands must up their game and focus on design to captivate consumers.

The article’s author quotes Suzan Wines, a partner at I-Beam Designs, who says:

“People instinctively associate a rewarding, enlightening or pleasant shopping experience with a brand and are compelled to return to participate in that enjoyable experience again and again.”

Customers with Theta personalities in particular are likely to enjoy shopping in a store that fits in with the values the brand associate themselves with. This is because they may be drawn to buy products that they see as helping them fit in within a desired group.

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A new age for luxury brands?

Isaac Mostovicz writes that the luxury goods industry is having to adapt to the conceptual shift of what luxury means to different people ...

The fluid nature of what luxury means to different people, and the challenges this presents to the luxury goods industry has been examined in a new report by the Boston Consulting Group (BCG) – ‘The New World of Luxury – Caught Between Growing Momentum and Lasting Change’.

“In this new world of luxury, being iconic and exclusive is not enough to make a brand grow, and fewer consumers are willing to blithely accept high prices as the mark of luxury. They need better reasons to buy,” it said in the report.

It was found that for most consumers the term true luxury connotes rarity, quality, and refinement; and is typically applied to hard and soft luxury (e.g. jewelry and fashion). However an Ipsos survey of 7,496 adults in seven developed countries, coupled with BCG analysis, revealed “experiences” must also be incorporated.

“In the eyes of most consumers, luxury also extends to alcohol and food, as well as to travel, hotels, spas, technology (for example, smartphones), and cars,” BCG said.

Other recent BCG surveys of consumer sentiment demonstrate that values such as stability, family, home, and spirituality became more important as a result of the economic downturn, while luxury and status in its traditional form became less of a priority.

“In the new world of luxury, consumers are looking more to ‘be’ than to ‘have,'” BCG said.

This model values the luxury industry at €1tr ($1.3bn; £846bn). Despite this massive profit pool, the challenges posed by the conceptual shift means the luxury goods industry must manage conflicting priorities in every major aspect of the business

Proving value, offering experiences, embracing new media, building brands, “refreshing” retail strategies and adopting corporate social responsibility should all be vital going forward, BCG concluded.

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