Every year, luxury brands experience something no retailer wants to confront—a loss of more than half of their top customers.
New research from Epsilon and the Luxury Institute shows this loss comes from not understanding who those top customers really are and failing to give them the experience they desire.
It’s sometimes a case of mistaken identity. According to a blog post on Epsilon.com, the study found that luxury brands believe their customers are typically women in their 40s with a net worth of more than $1 million.
O 57.5% of luxury spenders are male.
O They are likely to be of Asian and Middle Eastern descent.
O They typically have a net worth of more than $500,000.
The study, “The New Face of Luxury: Breaking Down the Myths and Stereotypes of the Luxury Shopper,” also found that nearly 13.8% of shoppers with a net worth of more than $1 million invest mostly in modern and contemporary décor and gifts as opposed to high-ticket apparel items.
As for the experience they desire, luxury customers prefer stores that are elegant and provide a pleasant experience during the purchase, according to American Express and the Harrison Group. They value relationships with specific sales associates and believe it is worth it to pay more for items that are the best quality.