Luxury Marketers: That 'Made in' Stamp Matters

Category: The Luxury Market Business 3087 Views Pamela N. Danziger

'Unity Marketing finds luxury consumers prefer luxury goods from the U.S.A. and Italy, while being suspicious of those 'Made in China

In this time of financial turmoil in the U.S. and the dollar weakening against international currencies, including the pound, the Euro, and the Canadian dollar, those who market luxury goods may be tempted to hold the line on price by switching their manufacturing operations to countries where production costs are lower.

But a new Unity Marketing survey among 1,300 luxury consumers shows that such a cost-cutting move may be a mistake that damages your brand and drives away the very customers you seek. Over two-thirds of luxury consumers say the place of manufacture is important when considering a new purchase.

"Luxury consumers show a definite preference for luxury goods manufactured in certain countries," says Pam Danziger, president of Unity Marketing and author of Shopping: Why We Love It and How Retailers Can Create the Ultimate Customer Experience. "Overwhelmingly, they associate countries like the U.S.A., Italy, France, and Germany with better quality luxury goods. On the other hand, China emerged as the country most associated with poorer quality luxury goods."

"This is important, because our survey shows that 80 percent of luxury consumers feel the association a luxury goods brand has with a particular country, like Chanel has with France or Gucci has with Italy, are integral to the perception of the brand. Nearly as many say they will pay more for luxury goods manufactured to exacting standards and in countries where manufacturing practices are high."

"Clearly, luxury consumers are flipping over products and looking for that country of manufacture stamp, and if it doesn’t say what they expect, they may well put it down and move on to an item manufactured in a country they associate with higher quality. After all, it is their search for superior quality that most powerfully motivates consumers to purchase luxury goods in the first place," Danziger continues.

Consumers’ opinions of countries of manufacture intensifies with age

One of the most interesting findings in Unity Marketing's fourth quarter Luxury Tracking survey of 1,281 luxury consumers (average income $155,700 and age 46.6 years) is the degree to which consumers’ opinions intensify with age. Consumer ages 45 to 70 were the most likely to hold definite opinions on countries they associate with better or poorer quality merchandise, while younger consumers weren’t so sure.

"Younger consumers may have not had as much time to travel, study, and form opinions on the countries of manufacture of their luxury goods," says Danziger. "This is a real opportunity for luxury marketers to educate their younger consumers about the company's insistence on holding the quality bar high, regardless of the country they use to source their goods."

For media: Charts, tables and graphs are available on request.

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About Unity Marketing's Luxury Tracking Study and a Special No-Risk Trial Offer for New Subscribers

Unity Marketing offers a cost-effective market research solution for luxury marketers: A syndicated luxury consumer tracking study that measures luxury consumers' purchases and brand preferences every quarter. Brought to you by internationally renowned luxury marketing expert Pam Danziger, Unity Marketing's Luxury Consumer Tracking Study is a vital tool to gain new insight and understanding about the luxury market.

New subscribers to the Luxury Consumer Tracking Study can take advantage of a special no-risk offer on a trial subscription to the service that can be rolled over into a full year of the service at a reduced cost. New subscribers may purchase a trial of a single quarter of the study for $2,500, which will include customization of the tracking study to fit your product and brand preference needs. This offer carries no commitment to subscribe for the usual year.

Once the subscriber experiences the powerful insights available in the Luxury Consumer Tracking Study, they may subscriber for an entire year (an additional four quarters) for $10,000 – that is a 25 percent savings off the normal annual subscription cost of $12,500.

New subscribers will therefore get five quarters of luxury tracking for the normal list price for four. In effect, you will receive one a quarter for free.

What Luxury Tracking Subscribers Get:

Subscribers will receive:

Luxury Consumer Tracking Survey quarterly analysis report of what 1,000-1,250 affluent consumers bought in the past three months, what they plan to buy in the next three months, how much they spent and their brand preferences. Each subscriber will have their brands and up to five or six key competitor brands included in the survey. The survey questionnaire is also customized to each subscribers specific product and service categories.
Luxury Market Report, 2008 - Who Buys Luxury, What They Buy, Why They Buy
Year-end summary of luxury consumer purchases and spending, covering trend years 2006-2007 consumer purchases. This annual report represents $3,500 value.
Access to Unity Marketing's affluent consumer survey panel. Subscribers can access this affluent consumer survey panel for customized market research projects. Costs to be calculated separately.
Half-price discount on all other Unity Marketing reports ordered.