If you want to understand why luxury shoppers spend you need to first understand the anatomy of human behavior. People buy what they want and not necessarily what they may need or will ever need. When it comes to luxury shoppers typically they spend on what they want because they can afford whatever it is they want at the time. The majority of luxury brands spend on advertising excessively in hopes of encouraging luxury consumers to buy aggressively. However, this strategy is not a smart move today because luxury shoppers are also extremely savvy.
The one question I am asked the most is “how to get luxury shoppers to spend money on luxury goods and services?” ….. Well, firstly that is a very good question and getting luxury shoppers to spend is systematically easy. I already shared with you that people buy what they want. That’s a million dollar tip!
Photo credit Rolex
Why would a luxury consumer purchase a Rolex watch? Rolex SA is a subsidiary to Montres Tudor SA design. Rolex was founded in 1905 by Hans Wilsdorf and Alfred Davis in London, England. Originally known as Wilsdorf and Davis. Actually, in 1919 Rolex relocated its base operations to Geneva, Switzerland. The Rolex and Tudor brands are the most demanded luxury wristwatches and timepieces in the world today. In fact, Rolex is the largest individual luxury watch brand in the world and produces an estimated 2,0000 watches per day. Hence, the demand for Rolex watches among luxury shoppers. Luxury is exclusive and not for the masses. Rolex watches are ranked as one of the top luxury goods that luxury consumers want in mass volume.
Targeting Luxury Shoppers
The luxury shopper is a global consumer and has resources to demand whatever it is that they want. According to Bain & Co. the Chinese shopper has a strong appetite for luxury goods and spends about 29% on luxury goods purchases. Even despite China’s crackdown on corruption and lavish gift giving I feel Chinese consumer will still continue to spend on gifts. Shanghai luxury shoppers heavily depend on social influence to make purchases. They value word of mouth recommendations from trusted influential sources such as influential luxury media, family, friends, and so on.
One of the most trusted media resources for Chinese luxury shoppers is the mobile QR bar code reader. In China most luxury shoppers use their mobile phones for Internet access and to learn about luxury goods they want to buy. Luxury brands can benefit by sponsoring QR bar code readers localized in China available on Apple on the App Store and on iTunes. Apple is where luxury consumers go and trust when it comes to luxury buying decisions.
Photo credit Ultisky, Inc on App Store on iTunes
Whatever luxury brands do they should also not forget about what the U.S. offers. Luxury shoppers are still heavily populated in North America and luxury brands need to engage more in content marketing sponsorships. The fastest growing marketing sector is content marketing sponsorships and presents a better return on investments over traditional advertising right now.
The city of New York remains a top location for luxury shoppers. While China luxury shoppers are more likely to spend on gifts. There is still a great demand for luxury goods among New Yorkers who prefer to spend on luxury purchases such as high-end fashion mainly for themselves. However, most North America luxury shoppers consult luxury magazines as influence for luxury spending so they are turned off to glossy advertising. Which is why luxury magazines and luxury brands both should also consider content marketing sponsorships as engagement.
This new marketing sector presents a solution to enhance image and consumer attitude perception about their brands. Through content marketing sponsorships they can drive sales by showcasing their product attributes and sampling reviews. Using content marketing sponsorship allows luxury brands to appeal to their desired target market in a product placement position. This innovative marketing platform can shape the luxury shopper’s attitude and perception influencing spending and generate positive reactions.
Please contact MosnarCommunications.com in confidence for luxury consulting and luxury content marketing sponsorship opportunities via Ann Lane ann@mosnarcommunications.com or call (404) 696-4833.