Every consumer can fluctuate between various shopping segments due to lifestyle choices, environment, values, financial situation or other factors. Some retail shoppers want uniqueness, some want quality above all else, and some want the rest of the world to know the brands that define them. There are even sub-segments. Within the luxury buyer segment, customers can have different pain points they are trying to solve and brands hoping to grow market share in this audience should understand what makes each subsegment unique.
Luxury Brand Consumer Segments
1. Luxury Deal Hunter: This segment of luxury shoppers is largely made up of women in their 50s. They are mostly professionals and have the smallest amount of income coming from investments. They prefer luxury, but they will not buy it unless they can afford it. They, like the Extravagant Travelers, prefer tax-free items, but Deal Hunters are also like Online Shoppers, in that they use online research to find the best deals. Favorite online shopping destinations include cherryheel.com and style.com.
2. Elitist Seeker: This shopper is likely to be a woman in her 40s with a meaningful portfolio of investments. The main reason this consumers purchases luxury items is the exclusivity it provides over the mainstream brands. Additionally, they prefer the better quality and the higher level of social responsibility that is generally associated with these brands. This segment is particularly attracted to exclusive experiences before committing to a brand.
3. Online Shopper: This segment is generally dominated by females in their 20s who value the convenience of luxury brands made available online. They do online research and then prefer to buy online. And they choose luxury for similar reasons to the Elitist Seeker, a higher quality and a more unique product.
4. Extravagant Traveler: This luxury shopper is generally a male between the ages of 30 and 50. This segment generally purchases on the fly—literally. When they are at an airport and they see something fancy, they buy it. This segment's motivation is appearance and social status so quality and utility is secondary to brand.
Secondary And Rental Marketplaces For Luxury Buyers
Millennials have re-shaped the luxury market since they are happy to rent to meet their need for discovery, status, quality or utility. Websites like Rent the Runway serve customers who understand that most products are not assets, therefore owning a dress is not as important as wearing the right dress to represent their identity. Millennials value convenience and technology and that has served the rental market well. These websites have been on the cutting edge of many technological solutions, like AI and IoT, giving millennials another reason to rely on them.
Onestop Internet is an end-to-end ecommerce solutions provider, specializing on meeting the changing needs of luxury brands to meet their consumers' shopping needs. Contact us to see how we can help your ecommerce business grow.