Unity Marketing's new Home Luxury Report details major changes in purchase of home luxuries and how marketers should respond
In the category of home luxuries -- items for one's home, like art and antiques, garden and outdoor items, and linens and bedding -- 2009 was a rocky year. Far fewer affluent consumers purchased items from this category, finds the new Home Luxury Report 2010 from Unity Marketing. However, those who made purchases spent on average 50 percent more than they spent on luxuries for their home in 2008.
Marketing success starts with understanding the customer
Unity Marketing gives luxury marketers insight into the purchase behavior and consumer psychology of the affluent consumers.
Is your company facing marketing challenges? Are you losing market share to the competition? Do you need to find new ways to attract customers? Are you late to respond to changes in where your target customers are shopping? Do your marketing and branding messages need an update?
Perhaps you don't understand the wants and needs of your target affluent customer as well as you should. While many marketers think they have correctly identified their target market, few can proceed effectively to create hard-hitting strategies without in-depth research on who their customer is and how he or she thinks, behaves, and shops.
For 2011 retailers need new strategies to draw resistent shoppers into their stores and encourage them to spend more
Retailers may have seen a bounce in sales this Christmas. But while that is good news for many, it is less indicative of a trend and more a sign that shoppers were releasing pent up demand after an extended period of doing without. For those retailers who want to sustain and improve their recovering sales figures, they need strategies to encourage people to visit and to buy.
At the latest Women's Wear Daily CEO Summit, Howard Tubin, an analyst at RBC Capital Markets who specializes in specialty retail, put this challenge to retailers:
New Unity Marketing report on the picture framing market finds customers have between 6 and 7 items waiting to be framed -- the makings of a framing boom!
Although the art market has been hit hard by the one-two punch of the recession and a product category that has become increasingly irrelevant to consumers, there is one bright spot on the horizon: Consumers love to frame photos and personal mementos, and they have a number of items waiting in the wings for just the right frame.
"The increase in demand for framing, both custom and ready-made, is being driven by a boomin digital photography," says Pam Danziger, president of Unity Marketing and lead researcher on the latest Art, Wall Decor, Custom Framing, and Picture Frame Report. A newsurvey among 1,300+ category buyers showed that nearly everyone has a digital camera, and almost two-thirds of them printed and framed a photo in the past year, likely to go on a photo wall or in-home gallery.
American Affluence Research Center advises luxury marketers to focus on the wealthiest 1 percent of the market and to ignore those with lower levels of high income
The Atlanta-based American Affluence Research Center has released its most recent survey of the wealthiest 10 percent of American Households and in spite of an overwhelming trend to pessimism about the economy and their own personal income, the AARC believes it has found a bright spot. "For the most part, [the wealthiest 1 percent] are going to continue to spend," says AARC president Ron Kurtz.
The AARC recommends: Luxury brands and luxury marketers should be focused on the wealthiest one percent because they are the least likely to be cutting back and are the most knowledgeable about the price points and brands that are true high-end luxury.