According to an article today from Appliance Magazine, luxury consumers are more focused on value than ever before. The article even goes so far as to equate today’s luxury shopper with an investor:
“This new affluent customer is keen on finding value when they shop so they look to maximize their investment in spending,” said Unity Marketing President Pam Danziger. “They expect the goods and services they buy to deliver the maximum return on their ‘luxe’ investment. Luxury marketers must make sure their brands give these customers a high yield when they buy.”
It certainly makes sense, as convention wisdom says that consumers will always look for the most “bang for their buck,” but luxury consumers had traditionally been seen in a different light. Luxury goods and their buyers had previously been seen as “recession-proof,” meaning the business would remain steady since traditional economic factors did not affect this market as much. But luxury spending and consumer confidence have both dropped to recent lows, and luxury spending was down 15% in the fourth quarter of 2011. With this recent report, it’s becoming more and more evident that the luxury market space has in fact been negatively affected by the recent downturn.
The fact that value-driven shopping has found its way into the luxury space shows that now more than ever brands have to ensure they are providing a clear and needed value with their products. It’s not enough to simply make a good product – you have to make a valuable product.
Not to toot our own horn, but this idea has been firmly implanted in our own company since its inception. You can even read it directly from our About Us page:
“Always at the forefront of our industry, our goal is to offer the best quality product and consumer value on the market.”
In our eyes, the only way we can be successful in this business is to give customers confidence in the quality of our products and our brand. After all, it’s your hard-earned money, and the least we can do as a manufacturer is ensure you’re getting the highest return on investment possible.