Saturday, 11 June 2016

Are you a Horse, a Gazelle or a Falcon, when it comes to luxury goods?

Chalhoub Group did a study on the GCC luxury consumers 2 years ago, and we were able to spot three consumer profiles - the horse, the gazelle and the falcon. Last year the consumer segmentation conducted along with Bain & Co through 2,000 face-to-face interviews across the region permitted us to quantify these different consumer types as follows:

'The Omnivore Horse' most represented by the markets of Dubai, Abu Dhabi and Jeddah and also more skewed towards females. These consumers are very strongly attached to fashion as they go behind trends, regularly update with new pieces, are on trend through magazines and blogs, and show strong celebrity influence. They associate luxury with things, like gourmet food, spas, furniture, travel, and cars. They will considerably spend money in all these categories.

There is 10 percent annual growth reported for the personal luxury goods market over the last decade. But it is expected to slow down to around 4 to 5% in the next few years

In terms of expectations in store they will require it all, from the latest products to store staff skill. It is very important to reward these loyal customers with invitations to previews and access to personal stylists. They will show the highest brand awareness and a high conversion to a wide collection of brands.

'The Opinionated Horse', mostly found in Doha is mostly male-oriented. For this particular category, being granted special prices comes first, followed by the newest offer, service and surely recognition. It is also about the right appearance, but because it will showcase success.

For 'The Conservative Horse', mostly seen in Riyadh, fashion is about reassurance. Critical influences will include primarily social media. In Addition, they will require a good dose of reassurance through all types of advertising. They will still be fuelled by the need for reassurance, needing sales staff expertise in the brand and aware of trends as well as recognising them as loyal customers.

'Gazelles' are quite influenced by celebrities and observe fashion as an expression of effortless style. In terms of expectations in store, these consumers will require it all: from the newest products, to store staff expertise in the brand and aware of trends, to being recognised as a loyal customer, including invitation to previews and being sent collections at home.

An archetype still very much in its infancy, 'Falcons' are somewhat distance themselves from the materialistic world and are beginning to value luxury for the experiences and the pleasure it can bring.

In–store these consumers look for knowledge of the brand's history and heritage as well as deep understanding of how the product is created. The sales person must become storytellers, helping them immerse themselves in the very essence of the brand.  In terms of products, they will be interested to bespoke and 'made to measure' items. In terms of events, intimacy is supreme.