Luxury Brands Face Multiple Challenges
Luxury Institute, the New York-based ratings and research organization, recently released the findings of their latest research which painted a difficult time for luxury goods as the recession drove away aspirational buyers and affluent buyers became more discerning.
Some of the findings from the Luxury Institute’s State of the Luxury Industry 2009 Survey, reported by brandchannel, are:
— Seventy-seven percent of high-end shoppers “agreed that luxury is less important in today’s economy.”
— Fifty-eight percent said they are “spending more on essentials rather than on what they want”; 56 percent said they are “being more practical about spending.”
— The majority of affluent consumers aren’t big luxury shoppers. Pre-recession, most of the luxury market’s power came from lower-income aspirational buyers.
— Many affluent consumers said that they’re primarily interested in quality and service, which they consider hard to find in luxury goods.
— The rise of discounting has damaged people’s brand perception.
This article was sourced from PJ Collings Blog’ Brand Architect