Luxury goods research

Luxury goods are a special product category, as they are created for rather picky consumers who know well what they want. It is much more difficult to promote these products, but with a well-designed marketing strategy, it can bring high profits.
Despite all the restrictions, rich people continue to purchase luxury goods. This trend is expected to continue in the future, the market cannot be stopped.

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What is a luxury product?
A luxury product is not a product of primary or even secondary demand. These are products of the highest price segment, in which completely different principles and rules apply, unlike lower price segments.
A really luxury product is defined by 2 main criteria:
1. Status. Really wealthy people are willing to pay significantly more if the product highlights their high social standing and status. An important factor here is the ability to demonstrate this product, i.e. it is important for a person to understand that people around them will see that they possess this status product and, accordingly, belong to a certain group of people. This is a kind of password for access to certain circles of society.
2. Pleasure. The more a product is designed for pleasure, the more it is appreciated. This can be easily traced by the example of works of art, exclusive jewelry, rare or limited collections of clothes, etc. Owning these goods brings their owners genuine pleasure, for which they are willing to pay. As a rule, these products do not carry any particular practical value, but rather perform an aesthetic function.

Correct product naming
There are 2 main designations of expensive goods that are used in practice: luxury and premium. It is important to understand that these are 2 different categories. Luxury goods are the very top, the most expensive goods, they are higher and more expensive than premium goods.
Luxury vs premium goods:
•  In the premium segment, the price is higher than in the average price segment, but lower than in the luxury segment.
•  The products belonging to these categories are of the highest quality, but luxury is still higher.
•  There are always more premium products on the market than luxury segment products, which often feature handmade products or limited collections.
•  The middle class may be focused on premium products, but luxury products are always the prerogative of the wealthiest people.

Features of luxury goods marketing promotion
ResearchView offers a comprehensive study of luxury goods consumers, including an analysis of the consumers target audience.
Marketing promotion of luxury products has its own specifics, including several important points.

How exactly does the brand position itself?
Marketing promotion begins with the definition of budget goals, as well as with the definition of a USP – a unique selling proposition. The future target audience, the main tools and ways of further promotion depend on it.
A comprehensive study allows to identify the advantages and disadvantages of the brand, to identify a possible free niche in the market, as well as the unmet needs of a potential consumer that the brand can satisfy.

The target audience of the brand
The analysis of the target audience allows to identify a potential consumer of luxury goods, which allows to develop and launch an advertising campaign attracting the target audience.
As a rule, luxury products consumers may be divided into 2 age categories: up to 30 years old and from 30 to 50 years old. An indicative client may be defined as a VIP, a business owner and just a well-off person who:
•  knows their own worth and is completely confident in themselves;
•  cares about status, so a high price for them is the highest value and argument for making a purchase;
•  values their time highly.
It is important to understand that potential consumers of luxury products may have different motives for making a purchase. For example, a person who grew up in a wealthy family has a innately developed good taste, they pay attention to details, so they buy the best product on the market and understand that luxury is always expensive.
There is a category of people who originally belong to the low or middle class, but suddenly or gradually became rich. They often have a slightly stereotypical idea of what defines high status. These people will always buy products that are well recognized in society in order to highlight and emphasize their status.

Website
Before promotion, it is necessary to analyze the website and, if necessary, completely change it. The website should be the brand's business card, as customers often buy online and what they see there directly affects the motivation for their purchase.
The website should:
• have a minimalistic, but aesthetically attractive design;
• reflect the philosophy and recognizable style of the brand, corresponding to the luxury category;
• be exclusive and not similar to product sites for ordinary consumers.

The ResearchView agency conducts research on consumers of premium and luxury goods, studying the behavior of the target audience and compiling a detailed psychographic portrait of a potential consumer. Our specialists have extensive experience in premium and luxury class audiences research. Send us a brief or order a free consultation to discuss the details of your request.