Luxury consultant Lorre White, "The Guru of Luxury," wrote on her blog recently that 92 percent of the world’s Ultra High Net Worth population is new money. To attract these new customers, those who market luxury goods and services must make people feel comfortable about entering the world of luxury products and services. They should educate them about the brand and do it in a fun way. In her opinion many marketers fall short.
Much of what she wrote contains valuable lessons not only in marketing but in how treat people in general. She wrote:
I embrace positive intensions where all actions are loving and supportive. These people did not get to their level of success from being stupid, but because 92% of the world’s Ultra High Net Worth is “new money” they simple did not have the exposure to be brand aware. Most grew up in the middle class and would be more aware of mass brands than elite brands. They may know Nike but not Armani. Luxuries evoke positive emotion. These individual want to experience life to the fullest that their means allow, and they are hungry to understand the art of the different luxuries. The only way for luxury brands to grow in this environment is to educate these consumers on their brand’s history, quality and uniqueness.
She added:
In the US where there is a larger group of educated individual there is a relatively low “cultural”‘ knowledge. If you go out to dinner with 12 accomplished C level professionals, you may find it hard to carry on a group conversation about anything that is not work oriented or involves a ball (sports). A dozen individuals that could discuss the symphony, ballet, art and rare wines, etc and involve everyone would be infrequent. This is why such an economically established country has only achieved about 36% of their luxury consumption potential. Thus luxury brands need to explain the art, or culture, of their luxury.
Read the rest of her article here.
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