Not all affluent consumers are the same, but finding common characteristics that defines segments in this market can help us understand and better target this high value consumer base. Focusing on smaller homogeneous groups that think and behave in a similar fashion allows a brand to customize its offering, making them more relevant to the consumer. Nowadays, luxury is about providing a personable, customization experience to the end user.
Our friends at Agility Research and their team of data scientists and methodologists propose a new insightful segmentation solution – the Affluent Luxury Consumer Segmentation. Using data from syndicated studies conducted every quarter, they have identified four distinct affluent consumer profiles based on behaviour and psychographic attitudes in relation to purchasing luxury products from different categories.
The Affluent consumer audience can, therefore, be segmented as such:
“Exclusivity is a luxury only a premium brand can deliver.”
The Exclusivity Seeker
is a key segment for many high-end brands as they have considerable disposable income and spend liberally across multiple luxury categories. These consumers spend on luxury cosmetics and fashion and are especially likely to spend on travel. For this segment exclusivity is a luxury a premium brand can deliver. They are likely to be female, 40-49 years old, a Manager, Director, or VP in a public or private company.
“Luxury products that I buy on my travels elevate my social status.”
The Indulgent Traveler
buys luxury predominantly at airports or in cities they travel to. The travel indulger is also something of a socialite who is looking to elevate his social status by buying luxury products. He is likely to be a professional (e.g., doctor, lawyer, engineer), male , and 30-49 years of age. The Travel Indulger spends money on high-end accessories such as premium/ luxury watches and jewellery.
“ Online luxury does not phase me; I research and buy virtually.”
The Virtual Shopper
does not have an issue with luxury converging with the online world. She both researches and makes luxury purchases online. She values luxury goods for their higher quality and uniqueness. The virtual Citizen is predominantly a female professional who is 20-29 years old. Her wardrobe is likely to displays fashion pieces from Calvin Klein, Gucci, Coach, and/or Chanel.
“Luxury is great, but only at the right price online and tax-free.”
The Luxury Bargain Hunter
sees luxury goods desirable, but only at the right price. This segment goes online to search for luxury products and prefers to buy products tax free. The Luxury Bargain Hunter is likely to be a female aged 50-59, a professional, or a mid to high level manager. While they have the least spending power out of all the segments, the Luxury Bargain Hunters spend more than others on electronic gadgets and on their vehicle.
Seek a consultant at www.affluential.com to get a more comprehensive profile of each segment or to apply their unique segmentation solution to your projects.