LUXURY BLOG
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LUXURY INDUSTRY NEWS
Coming from various sources, this section includes latest articles of interest,
in some cases coming with a commentary from our side.
The “new rich” market _ the consumer rich
In a study by the Nomura Research Institute, as of 2006, the wealthy class in
Japan with financial assets worth 100 million Yen or more consists of
approximately 865,000 households. But these HNWIs (high net worth individuals)
are not necessarily the most interesting customers for premium companies. Not
all people who maintain luxurious consumer lifestyles have large investments or
other wealth-producing assets. So while a high income or high net worth enables
luxury spending, more important is a certain personal and cultural
predisposition to it.
basic problem in luxury marketing
The problem about changed consumer attitudes from a marketing perspective is the
higher immunity of the discerning and highly sophisticated opinion leaders
against traditional marketing channels and mass media. Especially HNWIs do not
want to be targeted by direct push-approaches. To get access to rich customers
in general, and specifically their opinion leaders, pull-approaches have to be
employed to create a relationship based on trust ....
The higher the wealth level, the higher is the average marketing exclusivity of
the marketing environment and the media necessary to gain access to the
individual customer. The problem in luxury marketing is how to reach the higher
levels of marketing exclusivity, as these tend to vary depending on cultural
context, are linked to specific networks, and are not directly accessible.
3.2 a Three-level luxury marketing model
The analysis will differentiate between [consumer level 1] people who buy products
of a luxury company and therefore qualify as luxury consumers but do not have
the assets or income to qualify them for a rich lifestyle, [consumer level 2]
people exhibiting a high salary that enables them luxury consumption in certain
categories, but not all, and [consumer level 3] people encompassing both HNWIs
and people with an extraordinary income, qualifying them for an active premium
consumption lifestyle
3.3 HNWI marketing in japan
By excluding customers from accessing special services, by limiting the audience
and offering preferred treatment within a specially created marketing
environment, the image of mass marketing is transformed into one-to-one
marketing.
The most exclusive marketing environments, are the conversations between
consumers, or word of mouth. In order to make full use of this marketing
approach, an environment has to be created where people with higher marketing
exclusivity can meet and exchange information ...
