From the KPMG report “The Luxury Goods Market in Poland. Edition 2019 "shows that the number of affluent Poles, earning over 7.1 thousand. PLN gross, exceeded the threshold of 1.4 million in 2018. It is estimated that in 2022 the number may grow to as much as 2 million. The luxury goods market is expanding along with the growing incomes of Poles. Premium customers are consumers in such a market. Who exactly is a premium client? What are the characteristics? And how to get to it?
What is a premium product?
Before we turn to premium customers, it is worth explaining what is meant by luxury goods.
A luxury good can be defined as any product (or service) that is generally considered to be luxurious in a given market or that acquires a luxurious character due to its unique specificity (e.g. uniqueness or high price). Premium cars have remained the largest segment, accounting for almost 2/3 of the entire luxury goods market. The fastest growing branches of the market are considered to be hotel services and SPA. Real estate and alcohol are also in the lead.
Luxury goods are also:
- premium brand clothing and accessories,
- jewelry,
- Watches,
- cosmetics and perfumes of premium brands.
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4 features of premium products
We immediately associate the products of the Dior, Versace or Porsche brands with something luxurious. What connects them? Among the characteristic features of premium goods, we can mention:
- high quality - premium products must be of above-average quality; usually these are goods made of high-quality materials and components, e.g. jewelry set with precious gemstones, furniture made of rare, luxurious wood, handbags made of natural leather,
- impeccable workmanship - premium products must be made with the utmost attention to detail, preferably with the application of safety rules for people and the environment,
- uniqueness - a luxury good is something unique, something that is significantly different from competing products, has a unique feature that customers identify only with a given brand, e.g. the symbol of a bitten apple is immediately associated with the Apple brand,
- difficult accessibility - premium products are not available to everyone; you often have to wait several months or even years to get a specific product, e.g. from a limited series.
A characteristic feature of limited series products is also personalization, i.e. the individual nature of a given product. A limited product is something unique that no one else has.
The purchase of luxury goods is associated with a certain prestige and high position for customers, as well as considerable earnings for brands. However, reaching a premium customer is not as easy as it may seem. First of all, it's worth getting to know the different types of premium customers.
3 types of premium clients
Premium customers can be divided into 3 categories due to different approaches to the same luxury good. Getting to know each type of consumers allows you to determine purchasing motives, market behavior and marketing preferences of individual groups, which facilitates effective promotion and may increase sales.
The first group is made up of customers focused on the usability of products, especially their functionality, reliability, materials or technologies used, and ease of use. Such clients make decisions in a rational and thoughtful manner. They appreciate the high standard of goods performance and innovation. They consider buying premium products a good investment or valuable value that will remain at the highest level for at least several years.
The second group of premium customers are people for whom luxury is a kind of reward. Usually, they are buyers of products from well-known brands such as Prada, Versace, Porsche or Ferrari. Such customers reach for luxury products to strengthen their good position. They want to be perceived as people who value high quality and good workmanship, not lavish consumers for whom only the brand counts. Premium products are meant to emphasize their social status in a subtle and elegant way. Premium customers in this group maintain a healthy balance between luxury and extravagance.
The third type of premium customers are people for whom luxury is a weakness - something that satisfies their hedonistic needs. Usually these are young people coming from wealthy families who did not have to work for their high social status. Their purchasing decisions are mainly determined by emotional motives (e.g. a feeling of prestige). These are extravagant customers who eagerly reach for personalized, extravagant and eye-catching products.
How to reach the premium customer?
There is no one-size-fits-all method for reaching a premium customer. The method of promoting luxury goods depends on the characteristics of the target group. Strategy premium brands should take into account the detailed profile of the customer, defining his belonging to one of the above-mentioned consumer groups.
Before you build product marketing strategy and prepare advertising messages, think about who your customers are. Carefully analyze the target group and try to determine the motives that lead them to buy - the so-called consumer insights. You can use in the analysis quantitative and qualitative research, and in this:
- desk research,
- individual in-depth interviews,
- surveys,
- focus groups.
Based on the obtained data, create a persona, i.e. a model profile of an ideal customer. This will allow you to conduct effective marketing activities, and thus facilitate your functioning on the market.
How to reach premium customers from different groups?
1. Customers for whom luxury is functional like specific messages full of value. In your marketing activities, you should emphasize the innovation, high quality and functionality of the offered goods. For a potential car buyer, the following will be important: safety, reliability, comfort and timeless design of your product. Base your marketing campaign on these values.
2. The message addressed to premium customers for whom luxury is a reward should focus on the exclusive nature of the products offered. In the campaign, it is worth emphasizing the elegance of goods and a certain, unique lifestyle represented by the brand. If the customer feels one with the brand, they are more likely to make a purchase.
3. Premium customers, for whom luxury is a weakness, pay attention to the prestige and elitism of products in advertising messages. Appeal to strong emotions, emphasize individualism and uniqueness of the offered luxury goods. Thanks to this, you will certainly reach this small, but extremely profitable group of clients.
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