How Luxury Brands Can Win in 2017

Thursday, February 2nd, 2017
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alc_wealth_window_luxury_2017Will 2017 be fabulous for luxury? We don’t know yet, but there are definitely some important trends worth considering. Let me explain…

First, on the bright side, the stock market is at record highs… consumer optimism is up… and tax cuts could be on the horizon. However, the political environment is unpredictable… there are newfound concerns about travel to the United States… and a stronger dollar could hurt the luxury category.

In the past few days, a few of our Wealth Window clients have asked me, “How can we factor these trends into our marketing plans?”

While no one can guarantee what’s going to happen to the economy overall, my years working in luxury have taught me one thing for sure: In good times or bad, certain people continue to buy luxury products and services. Granted, the makeup of these luxury consumers changes – based on stage of life, current economic/financial circumstances, and other factors – yet the ability to identify these consumers has never been more precise.

For example, we are seeing a new cohort of millennials purchasing luxury brands. These consumers don’t fall under the classic definition of wealth, yet their behavior suggests they can be the next generation of loyal, upscale customers in certain categories. For example, among these younger buyers, “experiences” – as opposed to merchandise – is doing particularly well.

Obviously, 2017 is still young. It could be a terrific year for luxury across the board, but I say hedge your bets. As we begin 2017, it makes sense to identify new segments and customized audiences most likely to buy your products as soon as possible. We can help you target highly effectively by combining discretionary spending (by amount and type of purchase) along with hobbies, interests, demographics, wealth attributes, and more.

So how can luxury brands win in 2017? To be precise, be precise.

If you’re interested in honing in on those consumers most likely to buy from you regardless of circumstances, we should talk today.

 

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