In the UK, there are around 570,000 people with a net estate (excluding their family home) of between $1m and $30m. And while the wider car market is predicted to be flat up until 2031, according to Mackinsey, the luxury car market is predicted to grow at 8-14% per year due to the increased wealth of HNW and UHNW. Indeed, the production of high-end vehicles will double between 2021 and 2031 as more competitors enter the market.
However, there’s a common mistake that many luxury car manufacturers make when targeting the wealth audience; focusing on the qualities synonymous with the vehicle or brand.
For example, for Ferrari, this might be its speed and agility, for Aston Martin it’s the roar of the engine, and Rolls Royce, its style and unsurpassed comfort.
Marketing companies then work on a plan to promote Ferrari to petrol heads, finding race meetings and global events where these people reside.
Having worked with some of the biggest luxury car brands in the world, we know that this approach is very one-sided. The reality is that you’re promoting within your own echo chamber; people who know Rolls Royce know what it stands for. You’re preaching to the converted.
The key is to find wealth audiences who don’t yet know what the brand really means – to find new blood. Just because you’ve been an Aston enthusiast your whole life doesn’t mean that you’re not in the market for a new Bentley SUV after having your first child. You just don’t yet know the impact this brand will make on your life.
Tapping into the needs of the luxury consumer to understand their buying habits over and above the brand benefits allows us to find new consumers and convert people who have traditionally been brand loyalists.