Altagamma Consumer & Retail Insight 2024 say, the True-Luxury Global Consumer Insight survey was presented by Filippo Bianchi, Managing Director and Senior Partner, and Guia Ricci, Managing Director and Partner at Boston Consulting Group, dedicating this year’s edition to top spenders, defined as Beyond Money – customers at the top of the luxury spending pyramid.
According to Boston Consulting Group experts: “The ‘Beyond Money’ segment of buyers is the most significant for brands: 500,000 individuals who represent 20-25% of the total luxury market and are growing by 10% each year (CAGR).
They are immune to economic cycles and geopolitical crises, consider luxury an essential, and offer spending about 5 times less volatile than the aspirational buyer segment. Compared to the latter, they have also more than doubled their spending in the past decade.
This group includes Very Important Clients, who buy products from 10 brands on average, but are identified and treated as such by only 2 or 3 of them. Important opportunities are therefore missed in 70% of cases; these could be recouped with more sophisticated target segmentation.”
Here are some of the findings from the study,
1: It has become increasingly complex to make forecasts on the Luxury sector due to the macro-economic landscape volatility, rapid evolution and fluidity of the market, requiring analysis on a weekly basis.
However, a period of normalization is expected for 2024 with a realistic scenario of 1-3% growth compared to 2023, with a slow recovery of domestic consumption in China and limited consumer confidence in Western markets.
2: The most resilient and rapidly growing segment is the “Beyond Money” segment: consumers with an annual personal spend of more than €50,000. The segment is fueled by the soaring wealth of Ultra-High-Net-Worth Individuals.
3: The study shows that brands are not fully harnessing the potential of this Beyond Money segment due to suboptimal segmentation that prevents them from correctly identifying these consumers.
