Mathematics of the luxury market in Russia

Mathematics of the luxury market in Russia

To understand Russian luxury goods and services, look to growth potential and consumer behavior.

The key objective of this report is to define the Russian consumers through the lens of advanced analytics and the combination big and small data on the example of luxury market.

Special attention is paid to Millennials—the group that keeps all marketers’ minds occupied. The key findings of this research clearly show that their behavior and habits differ significantly from those of Generation X along all stages of purchasing funnel. The insights will provide luxury brands with an opportunity to discover the true identity of their customers and reveal what drives them—so that growth strategies could be adjusted accordingly.

This report was created in a joint effort with Conde Nast Russia. We completed a multidimensional advanced analytics study, built from the most valuable sources of information. The research accessed incredibly large data sets and used advanced analytics methods to identify patterns in consumer behavior. It also utilized multiple sources of information, cross-referenced them, used hypotheses formed within one to test data sets in others, to arrive at a conclusion about the identities of Russian luxury consumers supported by a variety of arguments.

The report is broken down into three main sections. The first section, on market expectations and consumer realities, looks at growth projections for the luxury market, as well as players’ priorities for development. Next, we explore how to respond to a new consumer paradigm, considering priority channels for building awareness and engagement, gaining engagement through social media, driving consideration and purchase, and creating loyalty and igniting brand advocacy. The final section is on leveraging advanced analytics to sharpen luxury brand growth strategy.