It would be an understatement to say that the luxury consumer ecosystem is becoming more fragmented. Gone are the days when there was this one type of luxury consumer. Today, amidst the different kinds of luxury consumers, each has its own unique expectations from luxury brands. Add to that the fall in numbers of tourists flying in from China and Russia, and the challenge for brands increases. To compensate this, brands are now shifting focus to their neighborhood, targetting the resident luxury consumer .
Speaking at the Arab Luxury World Conference in Dubai, Cyrille Fabre, Partner, Bain and Company said, “In the last 15 years, brands were focusing on increasing the ground covered with stores expansions. Now that it has been done, brands are fighting for their share of the pie. And that can be done only when we fine tune our efforts to win locals, tourists and expats.”
Manikandan Hari, Client Managing Director, SMG added, “We buy luxury to access a dream. As advertisers, we sell the dream to many but make it an experience only for a few. We do this by analyzing the consumers capacity to buy and use technology and data to make the accurate sale.”
Sharing the strategy that has worked for them, Stephane de Palmas, General Manager, Tiffany and Co. said, “We always follow three major steps – catch the attention of your customer, tell a compelling story and close the deal.”
Faced with all economic slowdown and complexity challenges, luxury brands have to ensure that they adjust their strategy and business model to serve the resident luxury consumer. Jean Marc Shammas, Brand Director, Middle East & India, Piaget Richemont, Dubai said, “Adding touch point and understanding the habits, likes, dislikes of consumers has become imperative. We make sure we have a social connect and personal bond with the resident luxury consumer as they will bring back another generation of consumers to us.”