According to Bain and Company, “the personal luxury goods market will continue to grow at a rate of 2-3 percent through 2020, reaching an estimated €280-295 billion in revenue”. That said, the UK and the EU are mature markets and will still have to fight for every euro. Developing new ways to get their brands in front of their target markets will be crucial in maintaining their revenue streams.
As far as age demographics go, Generation X and Generation Y are outspending the Baby Boomers in the luxury market. While the younger generations spend a lot more time online, there’s still a huge market for tangible marketing collateral. Believe it or not, people like to put down their cell phones on occasion and pick up a magazine while waiting in the GP surgery, at home, or at the office before a meeting. They don’t have to worry about passwords security, pop-ups, or technical glitches.
Similarly, while online shopping is steadily increasing, luxury consumers still find themselves in brick-and-mortar stores, regardless of age. Products that focus on textiles, colors, and sizes, in particular, are a major contributor to retail stores success–consumers need to physically see and touch these items before deciding to make a purchase.
Luxury Brands Need to Balance Their Advertising
Strategic placement of adverts will force luxury brands to cover many bases, both online and offline. The brands that will be most successful will not only have great aesthetics and superior storytelling, but they’ll have brilliant strategic placement. One of the secrets of these brands is advertising in local high-end publications. This is Magazine Sales House’s specialty. We place luxury brands in top-tier, glossy magazines that are area-specific, and appeal to wealthy locals and visitors alike. These publications can then either direct people to websites or to physical retail stores. The best global brands know that placing local adverts in the right magazines is an important part of a company’s overall advertising mix, and we’re pleased to be a part of it.