This article by Saswati Saha Mityra, a Consumer Behaviourist, was published in issue 07 of Social Technology Quarterly. Summary: While the community of luxury buyers grows with the addition of young luxury buyers, a technological advancement and direct engagement by luxury brands is required as the new entrants are tech-savvy and arrive with their own perceptions of luxury.

1. Methods of customer engagement in the
luxury industry are changing. Some major
trends include the rise in buyers between
ages 18 and 35, rise of new markets in
the BRIC and Gulf countries, and the
irreplaceable presence of technology.
These trends have impacted the industry
in the following ways: Younger customers
of luxury brands have to be catered to with
as much attention as the mature ones;
cultural preferences need to be reflected in
offers, activities, and strategies in order to
build new loyalties. Research also shows
that technology for this generation is the
new luxury. The freedom to explore, that
technology has enabled, is the new norm
and nothing less than this comfort will do for
the new consumer. This means that social
media and technology innovation are no
longer outside the purview of luxury.
Future buyers of the luxury industry are
young, tech-savvy, and globally familiar
yet locally in-tune. A deeper understanding
of their networking and communication
practices is necessary to effectively engage
them. Based on a qualitative research
conducted by students of the Master
program in Market Research and Consumer
Behaviour from IE School of Social and
Behavioural Sciences, with young luxury
buyers from Russia and the Gulf countries,
it was observed that within the ages of 22
to 35, there exist two distinct customer
mindsets.
Luxury buyers in the 18 to 25 age group are
highly individualistic to the point of being
narcissistic; mobility is woven in their DNA;
as consumers, they are highly demanding
about the worth of a product. Unabashed
in showing off their wealth, these
While the community of luxury buyers grows with
the addition of young luxury buyers, a technological
advancement and direct engagement by luxury brands is
required as the new entrants are tech-savvy and arrive with
their own perceptions of luxury.
by Saswati Saha Mitra
Engaging the Next
Generation of
Luxury Buyers
Commerce

2. Kuliza Social Technology Quarterly Issue 07
Photo Credit: Pedrosimoes7

3. consumers today do not seek luxury by price but by values of
style and design. Their involvement in customization highlights the
informed side of these consumers - they are not fashion victims but
fashion explorers and trend co-creators.
Given the heightened sense of ‘self’ and continuous presence
online of these luxury buyers, luxury brands, in the last two years,
have increased their presence on social media platforms such as
Facebook and Twitter. Burberry has 14 million followers. Watch and
automotive brands range between 8 to 10 million fans online. Social
media then seems to work for luxury brands. However, engaging
luxury buyers is not as easy as it looks. Research indicates that
although these young, luxury buyers may constantly be on social
media, they do not use social media to connect with their favourite
brands. Most do not even ‘Like’ their favourite brands.
Why is Social Media a Failure
with these Young Buyers?
Social is antithetical to luxury.
Social is democratic and
accessible while luxury is
exclusive and inaccessible.
These young buyers may be
technologically modern, culturally
open, and exploratory in design
but when it comes to the reason
to buy luxury brands, they believe
in exclusivity. Social media
pages of luxury brands are
open, accessible to all, and have
millions of fans. However, the
term ‘fan’ itself is objectionable
to these luxury buyers. Fans are
people who worship a celebrity
from afar. Luxury buyers do not worship their favourite brands from
afar. They buy them. As a result, as the high priests of a brand, to be
called a fan is almost an insult. The real luxury buyer refuses to be
in the crowd and as a result refuses to engage with favourite luxury
brands on social media. While this was seen as predominant theme
across most luxury industries, the automotive sector is experiencing
considerable consumer appreciation on social media. Buyers of
luxury automotives are highly satisfied with content generated
by automotive brands on social media. Cinematic in their effects,
intensely masculine, going in-depth about a car, automotive brands
are able to engage in ways both mass and unique. More masculine
luxury brands, focusing on automotives enjoy a more democratic
attitude amongst ‘fans’ of different socio-economic background,
while more feminine luxury brands, especially those in luxury
clothing, perfume and accessories, dislike the same democratizing
effect.
nouveau riche youngsters personify the ‘I-Me-Myself’ generation.
Technologically, they do not prefer ostentatious machines such as
Vertu phones or Swarovski studded designs. They are more into
simplicity and efficiency of Apple products or power machines that
are Android based, email synched with heavy storage facilities
on Dropbox, and can run heavy imaging and entertainment apps.
They use their phones as single point multimedia devices rather
than one for communication alone. These young, luxury buyers are
online on Facebook Messenger or Whatsapp around the clock and
communicate constantly through them even while shopping to be
more discerned about the things they are going to buy.
Amongst the 26 to 35 years olds, media and content saturation
is comparatively lower. Although advanced users of technology
devices, their platforms of choice are iPads and mobile devices.
These individuals do not
synchronize media consumption
to one device they end up
spending comparatively lesser
time on both devices. Whatsapp
continues to be popular but
is used more as an SMS
replacement rather than as a
constant messenger. This group
values the ability to switch off and
engage in sustained interactions
with family and externals.
Facebook for this group is just
a platform for people to find
them on, but real conversations
happen via Gmail or Skype.
Many of these luxury consumers
are also moving away from the
populist Facebook to more niche
networks such as Path where they can share content with limited
friends and family. As buyers, they are extremely alert to product
information, try out more items, and demand individualized and
customized servicing.
Both groups, although distinct, share some similarities. Both
possess a keen sense of value and a strong desire for uniqueness.
The research shows that for these consumers, value perception
is becoming more rationalized while the need for uniqueness is
heightened. An example that illustrates this need for uniqueness
is young buyers’ preference of shopping at Zara. Zara is affordable
fashion, but luxury brand buyers flock to Zara because it is a clever
choice for the fashion forward. While it stocks fashionable goods at
low costs, it allows young luxury buyers to mix and match a Zara
piece with a Versace trouser, together creating an ensemble that
is hybrid and unique to the creator. However, being fashionable
is top priority and not the cost. Therefore it can be asserted that
Social is antithetical
to luxury. Social
is democratic and
accessible while
luxury is exclusive
and inaccessible.

4. Kuliza Social Technology Quarterly Issue 07
Therefore, the future of engaging these
young luxury buyers is the creation of
hybrid realities, the development of closed
networks and investing in unique, youthful
events that will help establish strong brand-
consumer ties.
The hybrid reality concept introduces
latest spatial and social technologies such
as augmented reality, virtual reality and
touch screen technology to create special
experience zones. Depending on the
shoppers, a retail space can be turned into
a younger, wired space whereas for more
mature buyers, the luxury retail space
can be maintained. These personalized
experiences will allow different age groups
of buyers of the same brand without making
them lose the sense of being a privileged
buyer. Buyers can then use these latest
technologies to socialize their purchase
experience. Instead of sending images on
Whatsapp of clothes trial, they can invite
in their trusted network of friends via video
share into the boutique itself. The luxury
experience of the brand then translates
not only to one buyer but also to a group
of potential buyers at minimal acquisition
costs for the company. Luxury here is
socialized but not democratized. It gains a
technological edge which is folded into the
guise of luxury to create an out-of-the-world
experience that luxury buyers are constantly
on the lookout for.
The research also indicates that young,
luxury buyers believe that the place they
would like to interact with the brand and
other fellow users is on the brand site. This
should help brand websites, who are often
visually sumptuous, to go beyond a visual
appeal and improve their functionality and
thus increase opportunities to engage. In
the future, these sites will become the new
brand-led social networks. Buying members
will connect with others similar to them from
around the world united by a shared love
for luxury. Luxury brands should capitalize
on their unique strengths - the wealth
and social positions of their buyers - to
create a semi socio-professional network
of High Networth Individuals. Brands that
will be able to successfully engage these
consumers using the hinge of power
relationships, will achieve strong ties not
only between members but also with the
brand as the initiator of this effort.
References
Morphy,Erika.“Luxury Brands on Social Media:All
They Have to Do is Show Up.” Forbes.30 Oct 2012.
Kapferer, Jean-Noel and Vincent Bastien. The
Luxury Strategy: Break the Rules of Marketing to
Build Luxury Brands.Kogan Page Limited.2012.
“Luxury brands and majestic FAILS: Loewe, or
‘There is no such thing as bad publicity (except
your own obituary)’“ Appnova.02 May 2012.
Gallo, Di. “Luxury Brand Burberry Moves Beyond
the Tartan.” Social MediaWeek.14 Aug 2012.
Photo Credits
Left: Jason Hargrove
Right: Mac Ivan