Shopify created a great series of videos on An Insider’s Guide to Running a Successful Retail Store and it shares the same experiences and observations in our own retail world.
Working as a luxury buyer for a department store, it was a fantastic experience, it opened our eyes in understanding who are market was. Initially, you might think that it is obvious that luxury equates to billionaires and multi-millionaires contribute to most of the sales. Surprisingly, it is not the case. Those who buy are from a growing market of aspirational customers. Not the heirs or the billionaires, rather, a market that purchases luxury as a way to elevate the perception of their economical status. These customers have a stronger urge to buy luxury as it satisfies an emotional want. Selling them the quality of merchandise was never the pitch that will tip a purchase, rather it was answering the question, “how can this make me look rich?”
Always look for the emotion that your product serves and speak from there.
In this series from Shopify, they feature How to Determine Your Target Market and understanding who your target market is, is key to understanding your business.