Reaching the modern luxury consumer in a splintering sector
Beyond the splintering tribes of modern luxury, we’re also seeing new global regions of super-high-net-worth individuals exploring their versions of luxury.
With the definition of ‘luxury’ becoming democratised, what techniques are high-end brands using to maintain a sense of exclusivity? And how can Sticky’s Curiosity research help modern luxury brands reach their target consumers who, perhaps unsurprisingly, over index as Exhilaration Hunters?
The world of luxury is evolving. Modern luxury is more than just products and logos, there are now whole communities or ‘worlds’ around a brand. To create these distinct communities, brands are using subtle or bold signifiers of luxury – focusing on elements such as sustainable attributes, a sense of purpose, or even bold use of innovation and tech. Luxury menswear brand, Zenga is a good example where the owner, Gildo Zenga, has built a small community of elite buyers by inviting them to his family estate in Italy.
At the same time, the price of modern luxury goods is growing faster than we’ve seen in a long time, with a potentially unsustainable 52% increase in the base price of many luxury brands, according to The Business of Fashion. Simultaneously we’re seeing a shift in how luxury is perceived, and the market is expanding and redefining itself.
In a shift from the norm, modern luxury products can now be anything from brash pieces with oversized logos to subtle knits only those in the know can recognise. Are you team Balenciaga? Or team Loro Piana? Perhaps you’re team E.L.V. Denim, keen to showcase your sustainable credentials to the world via your jeans? Or maybe you’re team Polestar as we look beyond the fashion world and into the world of high-end motoring?
Modern luxury, redefined
Beyond the splintering tribes of modern luxury, we’re also seeing new global regions of super-high-net-worth individuals exploring their versions of luxury. For example, India, the Gulf countries, and South-East Asia are redefining what luxury means to them and that tends to differ significantly from traditional Western European ideals.
Luxury is also being redefined across purchasing power and by language. Once defined solely by exclusivity and price point, modern luxury is now increasingly driven by consumer opinion and youth-identified trends. The traditional gatekeeping power of luxury fashion labels and houses is being eroded by increased democracy. Outside of fashion, the term luxury itself, and other terminology that signified a rarified service, is also being democratised. How often do we see ‘bespoke’ offers and ‘luxury’ apartments advertised to the mass market?
With all this in mind, how do luxury brands continue to attract high-net-worth consumers? How do they maintain a sense of exclusivity beyond simply rising prices? And perhaps most importantly, how do they retain customer loyalty in this fracturing space?
Ultimately, the modern luxury consumer is still a person and it’s crucial for brands not to lose sight of this. OK, they may holiday, shop and live differently from the other 99% of the population, but they’re people nonetheless.
Ultimately, the modern luxury consumer is still a person and it’s crucial for brands not to lose sight of this. OK, they may holiday, shop and live differently from the other 99% of the population, but they’re people nonetheless.
As a network, it’s true that the luxury segment does have some anomalies. For example, traditional nudge theory and behavioural science encourage us all to be part of a group. If everyone else is doing this thing, then so should I. However, due to their rarified nature, the opposite is actually true of luxury consumers. The overall market may have become influenced by youth trends, but the luxury consumer still wants to feel unique and special. And this is true regardless of the luxury tribe they ascribe to, whether it’s bold logos, subtle nods or sustainable virtue.
Why do higher earners over index as Exhilaration Hunters?
Using our Curiosity data, we see that households earning more than £100,000 are as likely to be Clarity Seekers and Socio-Eco Empaths as anyone else and less likely to be Novelty Explorers and Expressive Individuals than the rest of the population. They do, however, over index as Exhilaration Hunters. Is this because they take bigger risks and the rewards of these risks have elevated them to this new income level, or does financial security mean they can be freer in what they do? Further research is needed.
Therefore, to spark the curiosity of an Exhilaration Hunter, luxury brands should:
- emphasise the inherent exclusivity of a product
- build a positive brand world that encourages relaxation and risk-taking
- lean toward the benefits of instant gratification
To play to the curiosity of the Socio-Eco Empath cohorts, luxury brands should emphasise the skills of the artisans creating the products and include messaging which showcases being part of an elite community of connected individuals. For Clarity Seekers, brands should provide clear data on everything from cost to source materials.
With any brand content strategy, it’s crucial to include all Curiosity cohorts, even the ones your audience may not over index in. Allowing the Expressive Individual to create their own look is a key driver for this audience, for example, as well as being the essence of true luxury and the origin of bespoke! Meanwhile, Novelty Explorers will yearn to discover more about a brand through a refreshed inventory that is both excitingly new yet still a recognisable part of the brand world.
Luxury is evolving and fracturing. It’s simultaneously becoming more exclusive and more democratic. By tapping into how this unique audience engages with the world around them, we can continue to deliver aspirational content that inspires and converts.
Find out how Curiosity can help you reach your target audience
