CASE STUDIES

Infiniti’s Market Segmentation Solution Helps A Leading Luxury Retail Client Increase Sales and Response Rates

Mar 2, 2018

The United States has been the largest regional market for luxury goods and is estimated to continue its dominance in the coming years.

Globally, the global luxury retail industry typically includes fashion, drinks, cosmetics, watches, fragrances, jewelry, luggage, and handbags. The global luxury retail industry has significantly benefited from the economic growth in the LAMEA and Asia-Pacific regions. Also, factors such as the increase in spending capacity of consumers and the rise in living standards are expected to boost the market’s growth. Furthermore, the luxury retail industry has witnessed an upsurge in their demand in the recent years, due to the inclination of consumers towards luxury goods and increased preference for premium products over cost-effective products.

However, certain factors are expected to curtail the growth of the industry. These factors include:

  • Customers experience: Today, customers not only want the products to be available, but they also want their experience to be seamless. Centralized customer data can help retailers build a fluid, seamless experience – beginning with an easily-accessible customer profile.
  • Multichannel buying experiences: Customers are moving seamlessly between online and offline experiences today and are open to retailers who can best facilitate these transitions. The solution here is to increase focus on creating a second-to-none customer experience across all channels as customers are looking for retailers they can trust to deliver exceptional service time and again.

Many such factors are compelling luxury retail firms to leverage the use of market segmentation solutions. IR_BrochureMarket segmentation solutions enable companies to better serve customers by identifying and marketing different products and services to various consumer sets.

The Business Challenge

  • The client: A leading luxury retail company

The client, a leading luxury retail industry firm with retail units spread across the globe, wanted to gain insights into ways to identify niche market segments and subsequently improve their brand image and profit margins. Additionally, the client wanted to devise a robust segmentation strategy to efficiently deliver their product and service offerings to their target customers.

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The Journey

Infiniti’s market segmentation specialists carried out extensive qualitative and quantitative research, comprising interviews and discussions with leading stakeholders in the luxury retail space to help them identify the potential target segments and implement effective marketing campaigns. The experts also compiled information from a wide array of proprietary sources such as paid industry databases, company presentations, and industry forums to help the client increase sales and response rates.

The Future

To meet the needs of the consumers, companies in the luxury retail sector need to innovate. The concept of a ‘brandship’ store – an evolution of the flagship store, focused more on building brand identity than product sales – is becoming increasingly popular in retail, particularly for companies at the luxury end of the market.


A must-read case study for strategy specialists and decision makers looking to develop an understanding of the luxury retail industry.

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