Luxury: because youre still worth it (how austerity in the UK is not deterring consumers from buying luxury goods)
Article Type: Abstracts From: Strategic Direction, Volume 27, Issue 8
Clark N.Marketing, February 2011, Start page: 28, No. of pages: 2
Reports that UK consumers are still willing to treat themselves to luxury products despite the fact that the country is in the middle of an austerity drive. Offers evidence, based on the sales performance of luxury brands in 2010,that people are trading down on consumables and commodities, but are treating themselves with items of personal luxury. Explains that the definition of a luxury purchase varies considerably across different groups of consumers but, in order to take advantage of consumers trading up, brands are turning to what they label a “premiumization strategy,”, launching upmarket variants of their products to suit the circumstances. Illustrates these points with particular reference to: Mulberry, which announced that its own-store sales increased by 66 percent in the six weeks to January 15, 2011; analysts at investment bank ING have predicted that the market for prestige and luxury goods will boom in 2011, especially the luxury watches category; Porsche reported that sales of new cars in 2010 increased by 25 percent in 2010 to 95,000, and that 63 percent more (14,785 vehicles) were in China; and Verdict Research forecasts global expenditure on luxury branded products to reach 225 billion pounds sterling by 2012. Lists the five key trends in luxury marketing as: social media; affinity marketing; conspicuous consumption; the growing role of electronic commerce (e-commerce); and the rise of “responsible prosperity.”Article type: ViewpointISSN: 0025-3650Reference: 40AG546
Keywords: Consumer behaviour, Consumer goods, Customer satisfaction, Customers, Marketing strategy, United Kingdom
