Affluent Shoppers Want To Feel Good When They Are Doing Bad
Fair-Trade Marketer Ten Thousand Villages Has Discovered The Secret Of Successfully Marketing To Affluent Shoppers -- Make Them Feel Like They Are Doing Good Even When They Are Splurging On Themselves
Fair-trade marketer Ten Thousand Villages has found that giving back and doing good is good business. The latest issue of Forbes magazine profiled this unique non-profit retail chain which operates about 100 outlets and reports net sales of $24 million. The company exclusively sells artisan-made goods imported from underdeveloped countries.
The secret of the company's success: People feel good shopping at a Ten Thousand Villages store. By shopping they are helping the less fortunate because Ten Thousand Villages guarantees the crafts people receive a fair price for their handicrafts. The company works hard to fulfill its mission to promote economic development through crafts by giving back on average 21 cents on the sales dollar to their artisan partners, as compared with the usual 1 to 5 cents of the retail dollar from other commercial channels. Click this link to see the Forbes story.
Ten Thousand Villages taps into a profound change in affluent consumer psychology
Pam Danziger, president of Unity Marketing and author of Let Them Eat Cake: Marketing Luxury to the Masses as well as the Classes, in which Ten Thousand Villages was also profiled said, "Ten Thousand Villages has successfully tapped a growing trend toward social consciousness among affluent shoppers. They are rejecting a luxury lifestyle focused on the pursuit of self-centered materialism. Ten Thousand Villages attracts a clientele made up largely of affluent women who are highly educated and concerned about social issues. Today's luxury brands need to be attuned to this rising social consciousness and think about ways small and large, highly visible and much more subtle, that they can support their customers' desire to be socially-responsible consumers, at the same time let them participate in owning luxury goods. They need to give their consumers ways to feel good even while they are splurging."
The desire to do good and give back is a bellwether of fundamental changes taking place in the luxury consumer market
The recently released Luxury Report 2009, Unity Marketing's report on the annual state of the luxury market, puts numbers behind the trends that are shaping the future of the luxury consumer market. Danziger says that surveys conducted among affluent luxury consumers show that the culture is shifting and the lifestyle of luxury indulgence is no longer the American ideal.
"Luxury consumers' desire to do good and give back is a bellwether of more profound changes taking place in the luxury market," Danziger says. "Luxury has lost its luster. Today luxury is synonymous with excessive indulgence, self-gratification, and an arrogant, wasteful lifestyle. Affluent shoppers who have much are giving back, doing good, taking concrete steps to make the world a better place."
Danziger continues, "When the current recession is over, the luxury market is going to be very different from the way it was before the current crisis. The next generation of affluent consumers are thinking about the impact of their consumption on future generations and learning that conspicuous consumption is not the way to grow wealth, to achieve happiness or to make their lives more meaningful."
A new age of post-materialism is emerging
Affluent consumers no longer measure their achievement in the things they have and own or by the size of their home or brand of their car. They are measuring life success in new ways, including what they contribute to society and how they help make the world a better place for all of us.
"As this new trend toward post-materialism takes hold, luxury doesn't mean the same thing it once did. People with money will always want the best quality, best workmanship, best style and design, but when they shop they place the emphasis on concrete attributes and values that are measurable and defined by facts and figures, not image or status," Danziger explains.
"Luxury is turning inward. It no longer is an external or outward show of status or wealth, but to an inner state of being defined by personal happiness and an outstanding quality of life," Danziger concludes.
Unity Marketing's Luxury Report 2009 examines the trend toward socially-conscious consumerism among affluents
Unity Marketing has recently published its annual report on the state of the luxury market. The Luxury Report 2009: the Ultimate Guide to the Luxury Consumer Market, provides detail data about the purchase behavior and spending patterns of the nation's most affluent consumers. In addition to its focus on historical shifts in the luxury consumer market, it gives marketers a forward-look into the future trajectory of consumer trends that are transforming the luxury market in 2009 and beyond.
The Luxury Report 2009 is designed as both a powerful desk reference and a source for insight into the future of the luxury market. It provides the kind of detailed facts and figures about the luxury consumer market that support strategic marketing decisions. But because it also focuses on the mindset and attitudes of the luxury consumer, it is an invaluable tool to help luxury brand executives plan for the future of their changing marketplace.
Commenting on the major findings in this year's report, Danziger says, "The Luxury Report 2009 tells the story of a rapidly changing luxury marketplace. Through the data and analysis presented, the report helps luxury product and service marketers assess the outlook for their brands and their product categories in 2009 and beyond. Luxury marketers need the kind of timely data that the Luxury Report 2009 contains to help them assess their current situation and find new opportunities for the future."
For Luxury Marketers: This is a report about your customers & your target customers
The Luxury Report 2009 is compiled from four luxury tracking surveys that Unity Marketing conducts every three months with 1,000-1,250 affluent shoppers who purchased one or more luxuries in the study period. Unity's luxury tracking study is the only longitudinal survey of its kind that tracks the luxury consumer market, what they buy, and how much they spend. A total of 4,609 luxury consumers were surveyed in 2008 with an average income of about $200,000, which is representative of the 22 million affluent households in the country.
Further, the report breaks down the affluent market into three distinct segments based on income, including profiles of the ultra-affluent consumers with incomes of $250,000 and up.
More detailed data is provided to give executives insights into trends in the markatplace
In addition to providing detail data about affluent consumers' purchases and spending in 21 categories of luxury goods and services, this year's report includes new metrics that measure spending by specific product and share of product category spending by retail distribution channel.
The report shows which of the product categories are growing the fastest year-over-year based upon increases in sales and which product categories are dropping at the fastest rates, an analysis so valuable Women's Wear Daily recently featured the list of biggest winners and losers in the personal luxury space.
This report doesn't stop with the data -- It pushes further to help marketers and retailers put the information to use
Unity Marketing's aim in publishing the Luxury Report 2009 is to translate the data into information that marketing executives can use to make critical strategic decisions. This market research report helps make the research data and findings accessible and useable. It provides marketers with three powerful perspectives: "What,” "So What," and "Now What." The report is written to reveal the key research findings, explain why they are important to luxury marketers, and then help marketers find ways to put the research to use in developing new concepts, new strategies, new tactics for success.
To that end, the report includes nearly 50 take action call outs that will help luxury marketers translate the research findings into marketing strategies and tactics.
Eight new trends are explored that help luxury marketers get out in front of shifts in the future luxury consumer market
Finally this year's Luxury Report 2009 includes a review of eight key trends in the luxury market, including the importance of green marketing to affluents, charitable giving including giving back through purchases, how the recession is affecting luxury consumers and how the country of origin of specific products influences luxury consumer to buy.
Call Pam Danziger at 717-336-1600 to discuss your specific research needs.
Related Articles
