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. Purpose and cultural currency trump displaying wealth for HNWIs
Younger high net-worth individuals are putting less value on large, material purchases and more on living a purpose-driven life, according to research by US-based brand consultants. Cultural currency is also more important than displaying wealth. Non-branded luxury items are becoming more popular as they appeal to this demographic’s desire for high-level curation and self-expression. Instagram and word-of-mouth marketing is important for building this cultural currency among younger, wealthy consumers.