Marketing of luxury goods

Gusó, Andrés

More than ten million people around the world are considered as High Net Worth Individuals, rich enough to afford the most expensive and absolute luxury goods. HNWI' s number constantly grows year after year, even during current financial crisis. Second tier of rich people, the high-end consumers: sporadic customers of premium products have been affected by the current economic crisis reducing their purchases dramatically. High-end customers and the affluent's cake is disputed mainly by three large industrial groups that account for 25% of the total luxury market, which is rapidly expanding to emerging economies and at the same time is trying to stabilize demand in the mature markets, via enlarging their product portfolio through affordable line extensions to appeal the high-end customers again.
Future challenge for luxury marketing will be to consider how consumers are continuously evolving mindset into new values, such as sustainability and eco-friendly luxury products, companies reputation, globalization, and more importantly that consumers are avoiding to show off their wellness, as it will be considered offensive and vulgar. Discrete consumption of luxury for the own pleasure will be a must.
Above scenario and challenges is the future for luxury goods marketers, who will have to rethink not only communication means and messages but also distribution channels evolution, such as e-commerce or private show rooms' role.