As consumer behaviors shift towards a more digital, social and experiential economy, so does the luxury industry. Both emerging and established luxury brands are constantly working to reinvent themselves, connect digitally and capture the heart of the next luxury consumer. Millennials are still willing to spend money on things they care about — but they find greater value in experiences, lifestyle enhancement, positive impact and social media currency, rather than in physical products themselves.
Within this article, we use Hitwise data to explore and breakdown the different types of audiences that luxury brands attract, and pay particular attention to those winning over today’s new set of millennial shoppers.
Differentiating Digital Audiences
In today’s digitally driven world, it is important to understand how a brand’s customer can differ both in-store and online and especially when compared to direct competitors.
To illustrate this, we use the example of British-born premium lifestyle brands, Ted Baker and Karen Millen. Both brands market to the high-end consumer and have similar store presence in the UK. However, when we breakdown the audiences visiting their sites, each brand attracts very different levels of online audience engagement.
From the Hitwise data graphs above, we can see that Ted Baker has a predominantly younger segment and receives traffic from channels such as Search Engines and Social Media. In contrast, Karen Millen has a higher proportion of people aged 55+ and relies more on traditional channels such as Rewards and Email.
Separating Discount Shoppers from Regular Shoppers
Brands also need to differentiate their discount shoppers from their regular online visitors. In Ted Baker’s case, people who have actively searched for “Ted Baker sales” (and variations of the term) skew higher toward females and older age brackets.
Ted Baker could then differentiate content and product offerings to target both audiences. For instance, sales promotions could be advertised on the Telegraph or Cosmopolitan, whereas new collections and latest trends could be featured on Vogue or Marie Claire.
Millennial Market Share, Over Time
Let’s explore how the top five luxury brands fare at capturing 18-34 year old luxury consumers. As you can see... [read the full article at www.huffingtonpost.com]