05 - Luxury Consumers & Transformations Flashcards
who are luxury consumers?
traditional scope: affluent customers (+100k income)
proxy: have spent 5k min in the past year on luxury
segmentation according to attitudes towards luxury
people who want to show they know
people who want to show
people who know
people who need to show
people who want to show they know
- to enhance consumers
- inner motivation
-> seek recognition from connoisseurs conveyed by authentic differentiated luxury/experiences
people who want to show
- to enhance consumer
- outer motivation
-> seek high social status conveyed by logo-driven brand strategies
people who know
- to maintain consumes in the condition they consider themselves to be in
- inner motivation
-> seek pleasure + substance (luxury for the self)
people who need to show
- to maintain consumes in the condition they consider themselves to be in
- outer motivation
-> social confidence conveyed by highly recognized luxury brands
general tendency of attitudes p/ country
USA: want to show they know
Europe: know
Russia: want to show they know + want to show
China: want to show
Japan: need to show
-> despite globalization, mindsets remain highly localized
mature markets vs emerging countries
mature: consumers began to question why they buy luxury goods (substance + high profile social responsible statement)
emerging: consumers need luxury to express their social status (logo driven + status over substance)
why are mature markets starting to question buying luxury goods?
- feeling less financially secure
- questioning social status
- questioning social + environmental impact
- guilt
emerging countries: two approaches
- consumers entering the luxury world, want ‘visible’ luxury goods
- people already used to luxury goods - seek luxury experiences + heritage brands to show their social groups
