Study: Real Luxury Shoppers Are Not Who You Think They Are
Prompted to imagine the typical luxury shopper, most people would picture a housewife dressed to the nines with arms full of Chanel, Gucci and Prada shopping bags. In fact, that’s the person most luxury brands assume are their most typical customers as well.
The results of a new study from marketing agency Epsilon and research organization Luxury Institute, however, prove that pretty much everyone, including the high-end brands that should know their customers best, are dead wrong.
After analyzing 30,000 luxury shoppers, the firms found that the typical “True Luxe” shopper — those that actually purchase from luxury retailers frequently throughout the year — was most likely to be an Asian or Middle Eastern single, childless man between 25 and 44 years old. Many luxury brands, however, operate under the belief that their average customers are females 45 years of age and older with wealth resources over $1 million.
The real demographics of the true luxury shopper according to the study:
That mismatch between assumption and reality may be part of the reason why luxury brands lose 80-90 percent of their customers every year, which also includes exactly half of their top customers.
Jean-Yves Sabot, vice president of retail business development at Epsilon, said:
“Luxury brands need to truly understand who their customers are and what they are looking for in a luxe shopping experience. This is critical in creating a personalized experience for the customer that drives engagement, retention and satisfaction.”
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