Wednesday, 28 October 2009

Examining The New Breed Of Luxury Customer – 28/10/09

The ‘Luxe Market Faces [a] Wealth Of Challenges’ according to an Adweek article we came across today.

This in-depth four-page article put many interesting issues on the table. However, the section that caught our attention was subtitled, ‘The Importance Of Pedigree.’ Its crux was that a luxury brand's long-standing heritage is often an important part of its value to shoppers. Milton Pedraza, C.E.O. of the Luxury Institute, supported this argument, saying, "There are very few new luxury brands. It's extremely hard to be a luxury brand without the pedigree and longevity… In this market, people are gravitating toward quality and history.” This has always been a simple truth to us.

Another section that stood out was the ‘Rise And Fall Of The 'Aspirational.’ It stated, “One problem for the luxury market, though, is that it came to rely partly on customers who weren't really wealthy enough to be buying such goods in the first place -- the "aspirational" consumers who relied on credit to indulge in the luxe life.”

It also goes on to suggest that wooing the genuinely affluent customers requires a completely different marketing strategy. Another argument we strongly agree with. For more of our thoughts on this, consult our earlier article: What The Luxury Customer Always Wants.

To read the full article, click here. There is also a Part 2 to be released next week.

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Who's behind the MO DOWN

Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury, www.moluxury.com.au