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Background: According to theMerrill Lynch - Capgemini 12th Annual World Wealth Report, assets of High Net Worth Individuals (HNWIs) rose to $40.7 Trillion. Average HNWI Wealth was more than $4 Million each for the first time; The world's High Net Worth population now stands at 10.1 Million individuals. India, China and Brazil have the highest HNWI Population Growth.
Although these numbers are in themselves quite staggering, the real numbers would be far higher as many millionaires particularly those in high tax jurisdictions do not fully report the true value of their assets, which may be spread worldwide and difficult to trace.
It's official: As if in response to this, the luxury industry is coming back after a short rest. According to an article in Forbes referring to the global consulting firm, Bain & Company's 2012 Luxury Market Update, the hottest style chocolate ugg australia boots on sale luxury goods industry is poised for full recovery by 2011.
The study and report is authored by Claudia D'Arpizio, a partner based in the firm's Milan office and covered some 220 luxury brands, which included leather goods, fashion, jewelry, alcohol and cosmetics companies that serve high net worth customers, or those with assets of at least US$1 million. The study concluded that spending on luxury is expected to reach around $230 billion per annum by 2012. New millionaires from countries like China, India etc. will no doubt be leading the charge.
Rules of the game: While some golden tried and tested rules of consumer research and marketing remain, there are a few that need to be especially recognized. The new rich seem to believe in the maxim - "If you've got it, you've got to be able to show it...or else you ain't really got it"
So as far as the new rich are concerned, this basically means that the whole point in purchasing a particular luxury brand would be to associate with the rich millionaire image the brand is able to convey to the relevant audience.
There are of course those who think that, because of the current poor economy, the wealthy now want to be understated and subtle about their wealth. Well, as far as the new rich are concerned this view is completely wrong.
Why Luxury Brands?: The rich patronize luxury brands for a variety of reasons. Although most would just prefer to say they buy for the quality of the product, the real reasons are more at the subconscious level ? like peer recognition and approval, status, the admiration (envy) of hottest style chocolate ugg australia boots on sale the not so rich i.e. the aspiring rich etc.
Luxury Brands Marketing: Luxury brand marketers deploy a wide variety of techniques to keep their brands firmly in the mindset of their customers... both current and in particular future customers. While public relations and advertising in selected media has been the mainstay, savvy marketers have also adopted special events sponsorship for decades... but mostly in name only.
However, in the last few years, a down economy has forced many luxury goods marketers to become more creative and cost conscious in reaching their target audiences.
Historically, marketers of luxury brands such as liquor, fragrances, timepieces, fashion and cosmetics have consistently pursued a luxury pricing strategy in order to maintain an impression of exclusivity. That strategy meant limiting the availability of products, price mar-ups etc. The thinking was, that their brands had to be guarded against brand devaluation.
But with luxury brands facing stiffer competition from new entrants and in an economy that's presenting additional challenges, the risk of becoming irrelevant or God forbid! Being considered ordinary is very real. Luxury brands are now reinventing themselves to a whole new generation of potential customers ? the new rich. They are moving above advertising, that's available to anyone with a budget, to considering unique, limited availability sponsorship of events and activities that are easily and obviously identified with the rich and famous, for differentiating their products.
Building Brand Image through Sponsorship: It takes a lot to build and a lot more to maintain a brand's upscale image active in the minds of customers. And this is vital to the success of any luxury brand. There is no better and more cost effective way to build and secure that image than by regularly aligning with luxury events organized by equally luxury oriented organizations.
Take for example Richman's International hottest style chocolate ugg australia boots on sale Millionaire Clubs. Its Charter Corporate Platinum Memberships is limited to just 100 globally, and is reportedly the world's most expensive private club memberships. This particular class of exclusive membership offers much more that just one club membership with worldwide benefits not offered by any other club in the world.