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Faced with economic challenges, luxury brands are refocusing on the wealthy to maintain growth, but a new McKinsey report highlights the importance of aspirational luxury consumers (ALCs) to the fashion market.
Understanding desires
There’s a lot of talk about the aspirational luxury consumer. Will they dilute the brand’s image or are they the loyal customers of the future? Should luxury brands continue to cater to their needs and aim for mass production, or should they become more exclusive again to capture the truly wealthy?
A recent McKinsey report dispels many of the (in)famous misconceptions about ALC and proves its continuing importance. These consumers, who spend between €3,000 and €10,000 per year on luxury goods, represent a significant portion of the market and are essential for long-term growth.
Luxury aspirational consumers account for 18% of the total fashion market value and 50% of the luxury market value in key markets such as China, the US and Europe. Contrary to popular belief, ALCs are not primarily young, with around 60% being over the age of 35. Furthermore, these consumers are not only attracted to logo-driven products, with 70% happy with lesser known brands.