Luxury CX wins: Reframe luxury marketing strategies to better match consumer mindsets – never rush them, plus nine more key codes
Latest research from The Growth Distillery unpacks 10 key codes for brands targeting Australia’s most discerning customers. But many marketing strategies are over-indexing on secondary factors while underweight on the main driving forces behind luxury purchases, says Head of Growth Intelligence Editorial and Product, Liza Williams.
The luxury industry in Australia is evolving and is being shaped by the unique aspirations, expectations, and behaviours of the Australian luxury consumer. There is an estimated $3.5 trillion set to be inherited by Australians in the next two decades, and as a result, a new generation of consumer is challenging the traditional notions of luxury.
Traditionally, the hallmark of luxury has been synonymous with exclusivity and opulence, however, the modern Australian market is leaning into a blending of both traditional and emerging expressions of luxury, and this shift is marked by a focus on craftsmanship, quality, and value.
Reframe Luxury, new research from The Growth Distillery and Verve Australia, delves into what luxury truly means to the Australian consumer and the ‘codes’, or expressions of luxury, that resonate deeply within this unique market. These 10 ‘codes’ speak to the desire and aspirations of the consumer and what they want luxury to do for them. They are an opportunity for luxury brands to better understand and cater to Australian consumers, aligning their offerings with the shifting preferences in the market.
Embracing intrinsic luxury
Australian luxury is shifting towards more intrinsic and progressive expressions of luxury with 75 per cent of consumers preferring these expressions. Consumers are looking for experiences and products that resonate on a deeper, more personal level. That is not to say more traditional and overt expressions are not still thriving, they have their place, but the growth in this market will come from a focus on the individual and experiential, independent of recognition by others.
While exclusivity and rarity remain a factor, consumers now prioritise quality and service in their luxury experiences, and they are the driving forces behind luxury purchases. This shift challenges brands to adapt and align their offerings with this changing consumer mindset and talk to value for a luxury consumer.
A distinctly Australian code
The Australian luxury consumer, however, is united in their love for one ‘code’, something we have termed "Relaxed Exploration" – a desire for calm, time, and the freedom to explore at a leisurely pace. It is providing comfort, but promising discovery, and the opportunity for escapism and switching off. This is the ‘code’ that provides the most opportunity for brands.
While 44 per cent of Australians prefer the "Relaxed Exploration" theme, it makes up only 10 per cent of the current luxury market supply. This is a significant gap between consumer preferences and the offerings available in the market, while traditional and overt messaging about achievement, indulgence and status over index.
As we navigate the Australian luxury landscape, the crux lies in acknowledging and celebrating the uniqueness that defines this market. The challenge lies in not only understanding the general themes that resonate but also in bridging the gap between what consumers desire and what the market currently offers. The future of Australian luxury is not just about the product; it's about the experience, the values, and the intrinsic connections that luxury brands can cultivate with their discerning consumers.
For more information or to download the full Reframe Luxury report from The Growth Distillery visit https://www.thegrowthdistillery.com.au/article/reframe-luxury
