Unlike past recessions, luxury has taken a hit during the latest downturn. As a result, luxury marketers are working hard to stay in tune with shifts in consumers’ attitudes. Luxury experts discussed these issues during “The New Luxury Paradigm” a session at the National Retail Federation’s Annual Convention, held January 10-13 in New York City.
Ellen Davis, VP and NRF spokesperson, shared luxury lessons from the session:
- Price does not equal value: “People want things they can’t get everywhere else, but they also want value,” said Steve Sadove, Chairman and CEO of Saks Inc. He suggests retailers achieve this by highlighting quality and design.
- Brands need to communicate better to their supporters: Davis writes that the bottom line is that companies need to love their customers as much as their customers love them, by giving them the vehicles they need (Facebook fan pages, for example) to express their appreciation.
- Customization is key: Tory Burch, founder and creative director of Tory Burch LLC, noted how today’s fashion is “about updating an outfit without having to go all the way.” For those in the jewelry business, that means customization -- in particular, creating new jewelry for customers who want to update their dated collections -- can be a real area of growth.
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