Debra Stevenson of The Skyline Studios

Luxury consumers may only represent 10 percent of American households, but they own or control 70 percent of the nation’s wealth. While most data trackers agree that the average annual income of these high-end consumers is $200,000 to $256,000, at the highest end of the tax bracket sit the billionaires, of which there are more in the world today than ever before. “Forbes counts just under 1,000 of them in 2007 as opposed to 140 in 1986,” Stevenson says. Here’s how to appeal to these influential big spenders.

Understanding The Luxury Psyche
The two key attributes a luxury product must have to attract its desired customer is uniqueness and high quality. “It’s a symbol of their success; a benchmark of how much they’ve achieved in life. They’re looking for something special that not everyone has. What they’ve achieved is special, and they want their goods to reflect that.”

Carmaris demi clutch by Bracher Emden

According to Stevenson, affluent consumers can be divided into two categories: new wealth and high wealth. New wealth consumers seek outward expression as a way to indicate that they have achieved something extraordinary. “They need to signal to their peers that they are part of this elite society.” Members of high wealth have lived with their fortunes for quite some time. “It's about a much more quiet form of expression that’s inward and about satisfying themselves.” Stevenson says this group may choose more discreet footwear.

Animal Instincts
Today these consumers are also on the prowl for products that unleash their inner animal. “There’s a huge interest in what I call exotica: exotic materials, fine finishes and embellished surfaces that define the luxury market today. Exotic materials satisfy the quest for the rare and unusual and define the luxury consumer in a comprehensive way.”

Crosta sneaker by Emma Hope

Stevenson is finding embellishments such as textured shagreen, anaconda, python, crystals and feathers being used more broadly in footwear today than ever before.

It’s A Small World After All
As the luxury consumer continues to search for exclusive, opulent products, brands must stay ahead of the game in order to provide them. Luckily, designers have the world’s financial systems on their side. “We're living in a flattened global economy where it’s really a borderless world of cultures blending together. Artisans who work in the luxury segment are looking for the next rarest skins to use in the market. They’re traveling further and have access to components from other countries because of where our products are being made. A wild, exuberant mix of materials mixed in one shoe or bag exemplifies the mash up of cultures in the fashion world today.”

Who’s Got The Look

Abbotsbury by Head Over Heels London

While the traditional luxury lines such as Christian Dior and Prada continue to appeal to the high-end consumer, there are some new faces emerging in the market. “There are some incredibly talented young designers coming from key areas [like London].” Stevenson’s list of ones to watch include Rakish Heels, Head Over Heels London, Emma Hope, Gil Carvalho and Bracher Emden Handbags. “I think it’s also going to be interesting to watch what comes out of Scandinavia in all sectors. They’re going through a real creative renaissance. I’m seeing that creative talent from Scandinavia is having an impact on design centers in other areas.”

Debra Stevenson is the chief brand strategist of The Skyline Studios, a brand development consultancy, and authors the Trend Agitator blog. Her 20 years of experience in consumer products have led to a solid track record in setting creative strategy and identifying new business opportunities for leading brands. As a trend-tracker, she provides insight to business leaders, private investors, industry forecasters and international media.

For the full version of this article, check out the April 2008 edition of WSAToday.

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