According to the extensive study done by a global management company Bain & Company, “There are more than 350 million luxury consumers in the world”. Moreover, the consumer base of the luxury market is consistently growing at a fast pace and are distributed across the global markets. Asia is a luxury fashion hub, but the growth shown in the last few decades by the continent in terms of luxury fashion is definitely commendable. Additionally, the estimate is that the luxury consumer base in India has grown almost about 25% from 2013 to 2018.
India has grown out to be a strong contender in terms of reaching the mark of $18 billion in the year 2017 already. Well, the stats are surely a proof of how the Indian market is welcoming the luxury brands to serve the humongous consumer base desiring luxury fashion. If you are to believe the stats, Retail in Asia mentioned clearly in one of the articles that the luxury goods market will grow by 8% and Asia in specific pepped up about 12% where it was forecast that it would grow only 10%.
Just before I lay down the aspects with which the customer base can be tapped, the brands should be able to understand the target audience and more about them. Intensive marketing research is a mus before you delve into the consumer-centric market. So, if you are planning to cater to this audience base, then, here are some of the questions that need to be answered:
What is your customer base?
The luxury market needs to understand the demographics of the customer base that they are looking forward to target. Depending on the age group, gender and other demographics of the customer base, it’ll be easier for them to target the customers.
Where is your customer base?
The location of your target audience.
What are they looking for?
The next would be - are you offering something that your customers are looking for? For example, are your customers looking for luxury fashion or luxury cuisine or something else?
Which brands are known to them and prefer them over others?
There are numerous brands available in the fashion industry at the current moment. From Burberry, Prada, Gucci, Jimmy Choo which is quite known to one and all there are those which are not very heard of among the common people. Some of them might include Cavalli Class, Car Shoe, BCBGMAXAZRIA, Tods, Tom Ford and others. Depending on their choices, these brands would be introduced to them and also those which have a great potential to do well.
What do they expect from your luxury store?
Customer expectation exactly leads to customer satisfaction. If your store is able to provide the goods that are up to their expectations, you’re in for good luck.
Which is better- Online vs. Retail shopping?
Online shopping has definitely seen the progress over the last few decades and customers have actually adopted the way the different luxury brands offer lucrative discounts to the customers. Retail shopping on the other hand definitely got the positives of providing the look and feel of the luxury products. See what suits your customer base.
How can the customer base be used by the companies dealing in luxury products?
Now, coming to the point where we’d talk about the aspects of how you (the luxury stores) would do that. Following are the aspects with which the luxury market or the luxury stores can tap their customer base.
By earning the trust of the customers:
Every store regardless of the fact of it being an eCommerce store or a brick and mortar one works really hard on earning the trust of the customers. Earning the trust of the customers is a direct way to sell your online store as an authentic source for buying luxury goods. The real question is - how would you earn the trust of your customers? Well, you can do that by:
Making promises that you’re able to accomplish:
Every luxury store makes certain promises like providing the best in the industry, brands that are authentic, seamless shopping experience and more. If the luxury market isn’t able to provide what was promised, there are consequences.
If the luxury market tries to proves its consistency from the customers finding their luxury products like Prada bags or Jimmy Choo shoes to let them complete the transaction and also getting the luxury goods.
Prices of the luxury goods:
The luxury market in India has been growing at a rapid rate and in order to make sure that the customer base is widened, they offer desirable prices which attract the customers. This comes as no doubt that India is a country where everyone wants to look fashionable and hence, would look up to the luxury brands. The price being a barrier, customers look forward to the online luxury market that offers attractive prices. Depending on the quality of goods and the discounts, the luxury market has been adding to the number of customers.
Offer great offers and campaigns for the customers:
The online luxury market lures the customers by offering them great discounts, offers, and campaigns. From offering them free giveaways, discounts, and much more, the luxury stores offer great campaigns to engage the customers as well.
What are the barriers in catering the customers with luxury goods?
1. The evolving market
The first barrier that the luxury market comes across is the constant evolution of the customer base. For example, India is still in the nascent stage of its development as a luxury retail market. With so many ups and downs like demonetization and others, it gets quite tricky to focus on the customers. From the needs of the wants and the choices have evolved and constantly evolving. Hence, it is quite a barrier for the luxury market to target their customers.
2. Diversified choices of the consumers
When you talk about the Indian consumers, you should know that with the number of population, their choices too are diversified. Unlike China, USA or West, the Indians look out for a good bargain from the market. People always seek value and search for information regarding at what price they can get brands internationally. The luxury market, therefore, has to offer diversified choices in order to keep the customers coming back for more.
3. The risk of shopping luxury brands
Shopping the regular consumption goods is still manageable for the customers but when it comes to luxury brands, customers find it risky shopping them online. For example, shopping regular clothing and accessories from Myntra and such websites still works for the customers but when it comes to luxury brand shopping, they would always look for familiarity towards the website and the brands.
With the possibility of exponential growth of the luxury market in the Asian countries including India, the luxury market has a wide scope of establishing the brands here and grow.