The worldwide economic crisis is having a profound and widespread impact on the luxury market, according to a recent survey of affluent consumers, reported JCK online.
"Few luxury brands are going to weather this global economic crisis with impunity," says Pam Danziger, president of Unity Marketing research firm.
Danziger added, "Because affluent shoppers are staying out of stores to resist temptation, retailers must offer shoppers new in-store experiences they simply can't ignore, like the cash-back gift card sale going on now at Bergdorf Goodman.
She says luxury brands need to look strategically at their product lines and price ranges, since these wealthy customers are saving money by choosing to buy fewer premium brands.
“So a luxury brand that offers more accessibly priced alternatives, like Vera Wang Lavender Label or the Akris Punto brand, can keep their customers from trading-down to another company's brand,” she said.
Danziger also noted that brand managers also need to boost the “value messaging” in their marketing efforts to help these consumers justify the expense of paying a premium for their brands." read rest of article on JCK's website.
Great tip for jewelry designers -- diversify, create "bridge" line, expand AND PROMOTE your brand.
Brand managers have to help the customers to justify the expenses, they are paying for the product.
Posted by: Jewelry | October 14, 2008 at 08:28 AM