The ever-developing high-end goods market calls us back to our instincts
Growth in high-end home sales may have slowed, bringing the premium goods market with it, but that doesn’t mean you should slow your marketing.
If you’re reading between the lines, you already know that double-digit growth, year after year, isn’t something you want, anyway—it’s a bubble. But your instincts to seize the opportunity are right on target.
Your next big break could be just around the corner, and it will likely be with Millennials. Younger generations are already outspending boomers in the high-end goods sector, and are expected to make up three-quarters of the market by 2020. That news should comfort even the most cautious marketer.
Now that you’re cozy with the new normal, here’s how you can make the most of single-digit growth.
Cherry Picking on a Global Scale
“Grow local” isn’t just a farm-to-table buzz phrase. Hiding in the global market’s nooks are bright spots that beat the overall market. Case in point: While Dubai has seen high-end home sales drop 25 percent on shifting oil prices, China and India are favorites for growth in the high-end market. Smaller local areas of growth from Paris to Portland, Ore., also making the cut. By targeting specific niches in these areas, you can cultivate new growth while your competitors go hungry.
A full 40 percent of the personal high-end goods market prefers retail channels, giving you an opportunity to make your marketing hyper local. Enhancing personalized in-store customer experiences and tailoring the brand value proposition, notes Bain & Company’s spring report, will help you convert these consumers to brand loyalists.
There’s much more to these homes than brick and mortar, starting with the high-end home goods consumers are clamoring to get. Connected smart-home devices and the Internet of Things continue to transform lifestyles. Euromonitor predicts ongoing investment in digital goods to support the market’s appetite for “all things connected.”
Smart appliances may see the most activity as consumers snatch up thermostats, security devices and other technology that can interface with their mobile lives, but wearable tech is also likely to rise. Marketwatch points to the year-over-year increase in wearable technology exhibits at the Consumer Electronics Show—up from 12 last year to 33 at the 2016 event—as evidence more people will jump on this trend started by the Apple Smart Watch and continued by Fitbit.
Create Value Through Storytelling
Even when people aren’t buying in droves, they’re listening. As competitors pull back their marketing, you can use the opportunity to increase your share of voice through brand content, notes Bain and Company partner Claudia D’Arpizio.
When you explore how your brand connects with consumers, and where it intersects their lives, you can create winning content that tells your brand story in a natural voice, laying the groundwork for brand interest and loyalty.
Need a few tips on how to find what motivates your customers? Read this article on mapping the customer experience and start the journey.