Luxury brands may need to rethink the way in which they market to affluent consumers, because affluent consumers are certainly rethinking the way in which they purchase products. According to Unity Marketing's Luxury Consumption Index, consumer confidence has dropped sharply in 2014.
Recently, I wrote about Affluents "rising up the hierarchy of needs" - increasing their discretionary spending as their economic anxiety and the fear of unemployment ease. We've seen spending increases in specific areas such as travel and sports equipment, as well as broader marketplace trends suggesting a growing interest in leisure, luxury and experiences.
The mobile phone is the modern day concierge, especially for consumers with a luxury appetite. They use mobile devices to shop online, share photos via Instagram, send text messages, check emails, and more, which is why mobile marketing should always be included as part of a brand's consumer engagement experience.
Luxury goods marketers have long understood the value of scarcity. Whether they are selling high-end watches, leather goods or clothing, these brands thrive on their ability to create a product image that is exclusive and only for the most discerning tastes. A carefully honed reputation as a purveyor of high status items allows them to charge above-average prices for a product that may or may not actually be superior to generic competitors.
In our latest survey wave, we asked two questions that we believe provide useful insights for advertisers and their agencies to consider as they determine where and how to engage millionaires with meaningful advertising messages. The first question relates to the media platforms on which consumers recall seeing or hearing advertising in the past 30 days, while the second assesses consumers' level of interest (engagement) with the advertising they saw or heard on these specific media platforms.