Dude, Where’s My Luxury Brand Audience?

Meet Nicole. She's 29, and works in events. She rents a flat in London's Shoreditch with her partner and they make their modest, but comfortable, incomes stretch until payday.

But she believes in the value of marking special moments, so each month puts away some money for a special occasion to indulge in some of life’s little luxuries - perhaps a night away in a 5-star hotel for her and her boyfriend's three year anniversary.

Graham Painter, CEO, Cream. 

Nicole doesn't actually exist, but her spirit is very much alive in many of today's consumers, who are defying the old stereotypes about purchasers of luxury products. Cream has specialised in marketing luxury brands for 14 years, and our proprietary research has demonstrated to us the complexity of this new consumer de luxe.

"Today’s consumer de luxe is a much more complex, evolved being than it’s ever been,  so media strategies to target them must be similarly dynamic."

It might be true that many are wealthy, but increasingly we find a new market opening up in those who cut back in some aspects of their lives in order to afford some of life’s indulgences. This new luxe consumer loves unearthing deals on Airbnb (almost) as much as they love shopping for a Jaeger LeCoultre watch or a Jessica McCormack party jacket.

This complexity means that traditional media choices, like upscale magazines for luxury brands, are becoming less the playground in which new luxury shoppers can be found. Instead, targeted out of home (OOH) media, influencer content, and tapping into a treasure trove of data gleaned from digital campaigns are proving far more measurable and fruitful for the luxury brand.  

Media agencies therefore need to rethink their approach for how they market high-end, and we need a new guiding framework for how we think about these consumers that incorporates people, like Nicole, to ensure we reach all possible audiences with brands’ luxury products. In essence, this framework should be built less on income or age, rather more on attitudes and interests.

"Peak sophistication sees consumers seeking inspiration, challenges and perpetual innovation."

They tend to have a strong sense of self and a positive perception of their own self-image. They are often highly digitally connected, and very keen to do their own purchasing research which means they have a good understanding of what's available. 86 per cent of the global top 1 per cent most affluent people are buying online each month (GWI).

Perhaps a better way of looking at these consumers is to look at their motivations behind every purchase, and their levels of discernment and sophistication in each market place.

On one end of the spectrum, we have those who buy for status to demonstrate their wealth, define their social position and visibly separate themselves from the mass market. They want their brand choice to elevate them from the average; for example some Yeezy trainers, or the latest Gucci handbag.

Alternately, peak sophistication sees consumers seeking inspiration, challenges and perpetual innovation. Brands that are playing here offer a unique proposition to consumers with their vision to change the world and humanity.

Tesla was the first automotive company to dedicate itself to speeding up the mass adoption of electric cars, Vetements invented a new vision of anti-fashion fashion, and Charlotte Tilbury Beauty wanted to empower women to conquer the world. These brands are achieving something poetic; something beyond the brand. They can change people spiritually or emotionally.

We can see clearly that today’s consumer de luxe is a much more complex, evolved being than it’s ever been, so media strategies to target them must be similarly dynamic if they are to reach the broadest possible audiences. The key here to unlocking abilities to target these complex levels is targeting the mindset that dictates the appetite, and thinking far beyond the demographic. With this approach, brands will be able to design poetic, multi-channel, and more successful marketing campaigns.