“Discount stores” top destinations in Luxury Report 2008.
Posted by v on May 16, 2008
Maybe Barneys was on to something when it collaborated with Target. The Luxury Report of 2008 is out and no surprise -Luxury marketers face new challenges as the economy falters and luxury consumers hold back on lavish spending . However 50% of luxury consumers claim to be spending the same, while 18% are spending more and only 7% are spending significantly less.
Wealthy consumers appreciate a bargain in clothing and fashion accessories, according to Stevens, Pa.-based Unity Marketing. “A ‘less is more’ approach is emerging among these consumers — rampant materialism is on the decline,” amid heightened concerns about the economy, president Pamela Danziger said. “This will place competitive pressure on luxury companies and retailers as they face a newly resistant affluent consumer with a mind-set to hold onto their cash.” The firm has released its Luxury Report 2008, which analyzed where wealthy shoppers said they spent their dollars in 2007. About 2,000 respondents with annual household incomes of $150,000 and more were surveyed. Results showed mass-discount and midtier department stores dominating the top 12.
They will shop sales and discount racks more aggressively and turn to the internet to find websites that offer luxury fashions for less. In the experiential realm, they will opt for drinks and appetizers at the latest ‘in’ restaurant, rather than ordering a full meal and they will take short-break domestic luxury vacations, instead of a week long stay.
In short, some of the rich have more become like you and I.
