Taking note
By DDI staff
Sunday, May 1 2005
Sunday, May 1 2005
Published on AllBusiness.com
The GlobalShop 2005 conference sessions provided insight to all attendees who spent time Mar. 21 – 23 in Las Vegas' Sands Expo and Convention Center at The Venetian. The sessions gave valuable information on all aspects of the retail industry—from customer experience to retail environments to current trends.
Pam Danziger: Let them eat cake
There is a new luxury consumer that defies the traditional definition of luxury, according to Pam Danziger, founder and president of Unity Marketing, a New York-based marketing consulting firm. Danziger traced luxury trends, pointing out that the '80s was the decade of the mall; the '90s was the decade of luxury; and the new millennium represents the decade of "experience." She emphasizes that 42 percent of consumers on all income levels gain luxury through experiences, including travel, health and beauty spas and dining. "Luxury doesn't have to be the most expensive thing," she said.
Danziger told the audience, especially brand marketers, to be aware of eight different aspects of the new luxury market.
1. Old luxury is at an end. "Old luxury is defined by things themselves (attributes/features of a product that defines it). New luxury is defined by the nature of consumer, and their point of view. The new luxury paradigm has shifted from things to experiences."
2. Luxury is embraced by the classes, then reinterpreted down. "It's a natural gravitational pull. Yesterday's luxury is tomorrow's necessity."
3. Consumers are democratic in their approach to luxury. "Americans value individuality over exclusivity—luxury is for everyone and different for everyone."
4. Luxury goods are better. "Luxury needs quality that justifies spending more money. Retailers need to deliver on this. Bigger price means better quality."
5. Luxury customers are always looking for a bargain. "Our research says that for every product category except for cosmetics, the majority purchased their last luxury items on sale. New awareness of luxury value in experience allows customers to look for bargains."
6. Luxury customers are highly invested in lifestyle. "They risk little; they won't go into debt to risk lifestyle. They know the value of a dollar."
7. Luxury customers do no buy because of brand. "Brand justifies the purchase. Luxury consumers buy brands because they perceive superior value that justifies spending."
8. Luxury customers are demographically similar. "They only exhibit differences of degree, not of kind. The four personalities of luxury consumers are the aspirer (wants more in life), the affluent (lives luxury all
Pam Danziger: Let them eat cake
There is a new luxury consumer that defies the traditional definition of luxury, according to Pam Danziger, founder and president of Unity Marketing, a New York-based marketing consulting firm. Danziger traced luxury trends, pointing out that the '80s was the decade of the mall; the '90s was the decade of luxury; and the new millennium represents the decade of "experience." She emphasizes that 42 percent of consumers on all income levels gain luxury through experiences, including travel, health and beauty spas and dining. "Luxury doesn't have to be the most expensive thing," she said.
Danziger told the audience, especially brand marketers, to be aware of eight different aspects of the new luxury market.
1. Old luxury is at an end. "Old luxury is defined by things themselves (attributes/features of a product that defines it). New luxury is defined by the nature of consumer, and their point of view. The new luxury paradigm has shifted from things to experiences."
2. Luxury is embraced by the classes, then reinterpreted down. "It's a natural gravitational pull. Yesterday's luxury is tomorrow's necessity."
3. Consumers are democratic in their approach to luxury. "Americans value individuality over exclusivity—luxury is for everyone and different for everyone."
4. Luxury goods are better. "Luxury needs quality that justifies spending more money. Retailers need to deliver on this. Bigger price means better quality."
5. Luxury customers are always looking for a bargain. "Our research says that for every product category except for cosmetics, the majority purchased their last luxury items on sale. New awareness of luxury value in experience allows customers to look for bargains."
6. Luxury customers are highly invested in lifestyle. "They risk little; they won't go into debt to risk lifestyle. They know the value of a dollar."
7. Luxury customers do no buy because of brand. "Brand justifies the purchase. Luxury consumers buy brands because they perceive superior value that justifies spending."
8. Luxury customers are demographically similar. "They only exhibit differences of degree, not of kind. The four personalities of luxury consumers are the aspirer (wants more in life), the affluent (lives luxury all
