Merriam-Webster defines luxury as “something adding to pleasure or comfort but not absolutely necessary.”
In a time of great uncertainty in this country, in terms of the state of the economy and that groundbreaking Presidential election looming, Americans are searching for luxury space in every day life to rekindle comfort and hope. On the bright side, businesses invested in luxury products and services continue to generate healthy profits amidst chaos, even though these earnings may be coming from somewhere over the rainbow. The answer to keeping your company in the black lies beyond the shores of the good old U.S.A.
Countries like India, Singapore and Hong Kong are emerging luxury markets and are targets for continued growth amidst the luxury sector. These countries are catching up to the more mature tastes and affluent incomes of countries like Australia and Japan and desire luxury products. This gives US businesses targeting luxury markets an advantage – foreign luxury consumers’ desire imported products. Touting the quality of American made products and the cache associated with owning imported goods allows businesses to dangle a substantial price tag from these transplanted wares.
Have you thought of how you can take advantage of your luxury product or service becoming part of these blooming economies? First, it is important to understand the expectations of the luxury consumer in these emergent markets – and one differs vastly from the next. For example, India, which is one of the most populated countries in the world, has the highest rate of “new” wealth consumers who are willing to spend their Rupees. These consumers are most concerned with brand recognition and desire the latest trends and hottest labels in order to show off that “they’ve made it.” They want to be treated with recognition and respect from luxury retailers and manufacturers. In Singapore, on the other hand, it is more important for the affluent consumer to purchase a unique experience; for example, a one-of-a-kind travel adventure they can recount to friends and acquaintances. They want unique life journeys to be recommended before they are willing to engage in a business relationship. So, before you set your sights on new markets, first align your product or service with the needs and expectations of your newly targeted affluent consumer – they are willing to purchase the high ticket item, but make sure you won’t disappoint! And elevate your customer service – many affluent spenders are willing to pay more if you think on their behalf.
When it comes to targeting the emerging affluent market, or markets, is your brand “luxury’ enough to communicate an iconic status and meet the desires of the emergent affluent markets? Can your brand break through all the perpetual noise to attract the wealthy? Assuming that if you begin to capture wealthy clientele, more will follow suit, it might be time to target some or all luxury consumers around the globe via your marketing mix. Whether your business is a bricks and mortar structure or an e-commerce web-based company, chances are if your product or service exudes indulgence, there is revenue to capture. Start seriously considering whether your product or service has the potential to draw a foreign market. Evaluate what you have to offer now and how to pull that distant consumer into your space in order to close the sale. So regardless of whether the Democrats or Republicans take office in this country, you are assured revenue from the luxury sector on a global level.