Luxury Market's New Normal AFTER The Recession
Everybody is asking it: What is the 'new normal' in the luxury market after the recession? The answer is simple: The new normal won't be anything like the old normal, according to the findings of a new research study conducted by Unity Marketing.
Danziger says, "Thanks to the recession, affluent consumers are taking time out from their profligate, overspending ways to reassess, reevaluate and reprioritize their lives. This will be bad news for luxury marketers, some of whom maintain the illusion that the current recession is only a temporary downturn in an otherwise rising luxury market. Unity Marketing's research shows that affluent shoppers are starting to ask questions about the luxury brands they once patronized, and those brands often come up short with compelling and meaningful answers as to why they should buy."
"The new normal in the luxury market is going to be all about delivering new values to the luxury shoppers who control the purse strings -- and the fortunes -- of every luxury brand today," Danziger explains.
Results of New Research Presented at Luxury Interactive Conference
Unity Marketing recently conducted a series of focus groups among highly-affluent and highly-engaged luxury shoppers in Beverly Hills. This location was chosen because it is "ground zero" for the conspicuous consumption lifestyle. The qualitative research was followed by a quantitative survey in April 2009 among 1,041 affluent consumers (average income $204,900).
The results of the research was presented at the recent Luxury Interactive conference in New York City. It gave luxury marketers a view of their future after the recession. It paints a picture of "The Good-The Bad-The Ugly" for the luxury industry.
Danziger warns, "Unfortunately, the future will be very ugly indeed for luxury brands that fail to listen closely to the opinions of what once were their best customers, but many of whom today are disenfranchised and looking for new alternatives to their conspicuous consumption lifestyle."
To assist marketers deal in the new normal luxury market AFTER the recession, Pam Danziger has published a white paper providing highlights of her presentation at the recent Luxury Interactive conference.
Advice for Luxury Marketers about the Market AFTER the Recession
"The new normal for luxury marketers is simple: Once the recession is over, the luxury consumer market is not going to go back to its spend-thrift ways," Danziger advises.
"Affluent consumers are redefining, reassessing and reevaluating their lives and their lifestyles. This is happening across the culture, not just among a small segment of the affluent market and it will mean major shifts in the way luxury brands can market their goods in the new economy. Discounts and sales won't be enough. They will need to realign their brands with the new values that more thoughtful, careful and selective affluent shoppers hold," Danziger concludes.
Predictions for Luxury Market this Holiday Season
In an interview on FoxBusiness.com Pam Danziger shared predictions for luxury retail this holiday season.
For media: Danziger available for interviews. Charts, tables and graphs detailing major findings in the report also available.