As many people mistakenly believe, luxury is not a social class. It is an opulent and extravagant state. Since it requires handsome expenditure, only the Rich or Uber Rich can reside in the state. In reality, the social stratum known as “The Rich & The Uber Rich” stands at the top of the social hierarchical pyramid. Although they are a microscopic squad, they deem to have a significant impact.
This brief yet incredibly moving passage requires increased exploration. There is a dearth of research on consumer behaviour in this intimate circle. The world of luxury can be classified into 3 different categories, despite the small cohort.
- Individuals who are born into wealth
- Individuals who are not born rich but have worked their way up there and is safe to say that they are first-generation wealthy
- Individuals who are High Earners but do not fall in the rich category
Their behaviour is in sharp contrast to one another.
This compact unit, who are born wealthy tend to maintain confidentiality and avoid extravagance in terms of displaying their wealth bank. They expend on expensive clothing or exotic vacations but don’t really take to social media or elsewhere, to gather attention. They are discreet in such a manner. Fresh and futuristic things are their taste. They fancy technology and innovation and are constantly on the lookout for bigger and minimalistic items.
Individuals who have been trailblazing money generators or those who built wealth with hard work, on the other hand, are affluent paraders. They display pricey insignia on their clothing to show the world that they are luxury brand owners. They heavily indulge themselves in social activities.
Other individuals are High Wage Earners who aspire to possess Luxury brands but are only able to touch the tip of the iceberg. This nano-group typically focuses on the introductory products of luxury brands. These individuals are ardent users of social media.
There is a complex mix of consumer psychology and purchasing behaviour as a result. The research in this area is inadequate, and the potential is mighty great. To add to that, environmental and sustainability concerns are particularly important, in this context.- The paucity factor drives the market.
As we talk about advertising & marketing initiatives, they can be a tricky affair.
Polished and minimalistic visuals, confident & stern voiceover, use of instrumental music specifically classical instruments, etc. are some premises which would appeal to the segment, on the lines. It”s crucial for us to be monitoring the platforms on which these individuals devote their time to promote using highly targeted, completely open communications. It may not be effective to just state that a product is 100% green; it may be more effective to explain precisely what changes were done to make the product 100% green.
People in this market niche enjoy being indulged, hence the pivotal structure is to make a product effective from an experiential standpoint as well. The hidden truth resides in the finer points of product demonstration and hospitality.
In Real Estate, the word Luxury has been widely misused and misinterpreted. Developers,, consultants, and marketing firms have been casual in terms of using the term. The gravity has been largely diminished. The word “Luxury” is used across all of the company’s communications to characterize its product in a residential development on the outskirts of the city with a ticket price of about 50 lacs per unit. How do we define a genuine Luxury Product then? This particular issue has been frequented more than ever.
It’s time to control marketing communication and define boundaries so that customers can grasp them more easily and avoid being misled by them.
Positioning and selling luxury goods is a very difficult business. The most important driving force needed is to understand and target each individual consumer. One size does not fit into this category. The biggest challenge is positioning the same product in multiple manners.
In conclusion, that luxury is mystical and interesting. Money isn’t the only thing that defines luxury, it can be defined as a way of living, also driven by youth and culture (Gen Z, Millennials). “Luxury is simple”, yet intangible and there are multiple ways to define luxury better. We must address luxury in a way that justifies the purchaser’s status in an elite and prestigious group.
They deserve it.
Written by …..
Mr. Indranil Bose – Country Head
NKLUSIVE ~ (Premium and Luxury Intermediary of NK Realtors)