Luxury Consumers Attracting and retaining luxury consumers Luxury

Luxury Consumers Attracting and retaining luxury consumers

Luxury Consumers KNOW YOUR CUSTOMER • But how do retailers get to know their customers?

Tracking consumers beyond demographics Market Segmentation

Tracking consumers beyond demographics

1. Secured Traditionalist 20% of global consumers 53% male About 41 years old Annual average income $34, 594 Actively avoid shopping Unlikely to seek strong branded or premium products Save rather than spend

2. Empowered Activist 17% of global consumers 55% female About 40 years old Annual average income $38, 842 Feel they can make a difference Concerned with global issues Value quality and durable products Want to reduce footprint

3. Conservative Homebody 16% of global consumers 52% male About 37 year old Annual average income $41. 230 Focused on home, family, & spirituality Uncomfortable in the spotlight Prefer to let others lead Not image conscious Not materialistic

4. Inspired Adventurer 13% of global consumers 52% female About 38 years old Annual average income $36, 779 Like to try new things Have big plans Interested in living abroad Interested in being self-employed Anticipate an increase in spending

5. Undaunted Striver 13% of global consumers 57% male About 37 years old Average annual income $54, 618 Tech savvy Image conscious Like to try new things Seek branded and premium goods

6. Cautious Planner 9% of global consumers 54% female About 45 years old Annual average income $37, 633 Careful with money Rarely make impulse purchases Comfortable with traditional methods of commerce Less likely to use credit cards

7. Balanced Optimist 9% of global consumers 60% female About 41 years old Annual average income $49, 868 Health and well-being is important Seek value when spending $

8. Impulsive Spender 5% of global consumers 54% female About 38 years old Annual average income $34, 420 Frequently make impulsive purchases Like a ‘good deal’ Treat themselves Live in the present Unconcerned with internet privacy

Path to Purchase

Influences and customer types

Retaining Luxury Consumers Buy proven lines/names Keep stock current & fresh Keep up with trends, but don’t follow too closely Exclusivity

Retaining Luxury Consumers Types of Retail Outlets • Free-standing stores • Flagship stores • Shops-in-shops • Department store counters • Sole proprietorships • Chains

Retaining Luxury Consumers Performance indicators • # of pedestrians passing the store • Conversion rates (% of shoppers entering the store that make a purchase) • Average # of Items purchased • Turnover • % markdown to sales • Sales per square foot • Sales per associate • Sell-through %

Retaining Luxury Consumers Requires: • Extensive research of • The economy • Fashion trends • Climate • LY sales

Retaining Luxury Consumers Assortment considerations • # of styles needed • Square footage of store • Total shelf & fixture space • OTB

Retaining Luxury Consumers Why are luxury consumers willing to purchase expensive, non-necessity items?