Luxury
It’s not just about high prices. Even though the desire for one-of-a-kind items with meaningful value has always been important to the luxury customer, the realm of luxury goods is changing. Three of the biggest changes, according to Forbes Magazine: women as the consumer, creativity as the focus and growing environmental consciousness.
Creativity, self-expression and environmental awareness are seeping into this industry, making it important that marketers align their products with these ideals. Women are becoming a larger customer base for luxury good consumption. Traditional luxury marketing is not as effective because it does not speak to women, who according to Forbes, are graduating at a higher rate with advanced degrees and launching more new businesses than men.
Family has become an important consideration to luxury buyers as well. According to HotelMarketing.com, both the intensity of modern work schedules and post-9/11 reflection have led to an increase in luxury family travel. A recent American Express travel survey shows that 82 percent of the luxury market prefers to book at high-end hotels with children’s programs.
Forbes highlights some other trends that can be seen in 2008 and will continue to grow in 2009. These include a decrease in private ownership and an increase in membership (cutting costs for the wealthy), private banking and the emergence of the high-end flight (not just first-class sections) on major carriers.
AXIA has the insight necessary to understand and take advantage of these luxury industry trends. The Luxury Institute, a New York based research firm, shows that although these top earners and consumers account for only 10 percent of the population, they provide 80 percent of the profit to the luxury goods industry. Following the ideas and desires of these savvy shoppers and discovering the appropriate marketing to reach them will guarantee success in the industry. The major point: listen to these customers because they know what they want. AXIA is prepared to help you realize your company’s message and increase your visibility in order to reach these target consumers.
Scott Reeves, “Seven Trends in Luxury,” Forbes Magazine. 22 June 2005 <http://www.forbes.com/2005/06/22/luxury-wealth-trends-cx_sr_0622luxury.html>.
“Seven Trends in Luxury,” Forbes Magazine.
Karen Weiner Escalera, “Top ten luxury and travel lifestyle trends for 2008,” HotelMarketing.com. 5 December 2007 <http://www.hotelmarketing.com/index.php/content/article/071204_top_ten_luxury_travel_and_lifestyle_trends_for_2008/>.
“Seven Trends in Luxury,” Forbes Magazine.
“Seven Trends in Luxury,” Forbes Magazine.