Technological developments combined with demographic shifts in luxury consumers are serving to redefine what luxury means and represents to people, especially younger consumers. The concept of luxury is in flux and is broadening out beyond physical products to unique experiences. Luxury consumers increasingly navigate the path to purchase via a number of digital touchpoints, which luxury brands are using to build stories and wider experiences around their brands.
Luxury Shopper behaviour explores the shopping habits and dynamism of luxury shopper or High Net Worth Individuals (HNWIs).
1. Luxury consumers are concerned with experiences, heritage and craftsmanship
The definition and scope of what luxury means is changing. Primarily, luxury consumers now expect more from brands beyond traditional luxury cues. Their idea of luxury is becoming more experiential and immersive, driven by technology and on–the–go lifestyles. GfK's annual global study, Consumer Life, highlighted four ways in which the definition of luxury is changing:
- Conspicuous consumption is giving way to considered consumption where materials, time and craftsmanship win against so–called badge values.
- High–end consumers are seeking experiences rather than goods, so fuelling the luxury travel and leisure sectors.
- Global sales of wearable electronics and smart devices are set to dominate the luxury agenda.
- Luxury retailing will increasingly differentiate itself by further integrating technology into the physical experience.