Quite a few high-end brands that are presently working alongside a luxury digital marketing consultancy to support their growth ambitions, will have reason to take an interest in the outcome of new research focused on the evolving preferences of wealthy consumers.  

A call for high-end brands to ‘innovate or get left behind’ 

The study in question – as reported by Fashion Network – involved between 200 and 250 luxury customers being questioned per market in the UK, China, and the Middle East. Each respondent had a personal income of at least £250,000 per annum, and/or more than £1 million in liquid assets. 

According to the study, luxury brands cannot simply depend on the appeal of their beautiful products; instead, they must “innovate and entertain or get left behind”. 

The agency behind the research stated that ultra-high net worth individuals (UHNWIs) “increasingly expect brands to create lasting memories and connect to a wider community. Luxury brands will need to undertake rich storytelling, entertainment, rapid innovation and creativity, or risk future growth.” 

Who are the ‘Memory Makers’, and how are they reshaping the luxury market? 

A particularly significant finding from the research was the emergence of a new type of UHNWI shopper, accounting for about a fifth of such wealthy individuals in the UK: the “Memory Makers”. 

This segment of UHNWIs is largely made up of Generation X and Millennial shoppers. Crucially, they “are 180% more likely to view luxury as the pursuit of meaningful experiences rather than showcasing wealth or prestige”. 

Such a tendency marks a vital distinction between these luxury customers and more traditionally minded high-net-worth shoppers, who are more attracted towards buying products as a signifier of financial success or status. Instead, “Memory Makers” express a desire to create unforgettable memories with their luxury purchases. 

This preference is borne out in data emerging from the research. Some 70% of these new consumers, for example, said they had invested in travel and hospitality experiences during the past year – an indicator of them not simply associating luxury with the accumulation of more “stuff”. 

It might also help to explain why the watch market has continued to be relatively robust, as “Memory Makers” seek out mementos that can be shared across generations. 

There are, though, some more universally applicable trends to account for 

The study findings didn’t purely concentrate on the preferences of younger luxury customers differing from those of their older counterparts. 

Indeed, the research found that “all luxury shoppers now seek meaningful experiences throughout the customer journey… creativity and immersion are now expected in luxury ad campaigns, with 44% drawn to brands showcasing exceptional creativity and 84% viewing luxury ads as a form of art”. 

Brands that already apply considerable innovation and creativity to their marketing campaigns will be heartened by these findings. They do not spell such great news, however, for brands that continue to depend on big names to promote their offerings. 

Sure enough, it was found by the research that 36% of luxury shoppers “are now bored by global celebrities and influencers featured in traditional luxury marketing. Brands wishing to reach luxury audiences should therefore double down on storytelling, creativity and innovation”. 

Are you on the lookout for the proven luxury digital marketing consultancy that will assist your efforts to accomplish exactly this? 

If so, our team of creative, strategic, and marketing experts at Skywire London would be pleased to hear from you. Please don’t hesitate to enquire today, so that we can discuss how we may be able to work most effectively with your high-end, fashion, or lifestyle brand. 

Photo by Bjorn Agerbeek on Unsplash