What Is Luxury, Anymore?
In today’s issue of Pam Danziger’s Unity Marketing newsletter, she writes that the experience rather than the “thing” is more sought after in today’s luxury marketplace. And, the affluent people she surveyed said that they found more satisfaction in experiential luxuries, “more so than home luxuries or personal luxuries like clothes, cars or jewelry.” To take that one income degree higher (would that be the super-duper affluent?), Pam cites a new survey conducted for American Express Platinum Card, which found that “even more affluent consumers than [Unity Marketing] typically field(s) found the exact same thing, with a sizable majority voting for luxury experiences over luxury things. ”
Then, Julie Hanna writes in today’s issue of Harvard Business School Working Knowledge about how “consumer preferences are constantly shifting, causing the concept of luxury itself to change over time. As a result, the market’s most recognizable brands have adapted by refreshing their product lines and extending their brand to more affordable items.” The recognizable brands she mentions include Steuben and Godiva.
In the continuing case for just how much the concept of luxury is changing, a previous HBS Working Knowledge article by Patrick Barwise and Seán Meehan talks about how Target has been hugely successful with high-profile design partnerships like those with Isaac Mizrahi, Philippe Starck and Michael Graves – all of whose products were only available in luxury-land pre-Target connection.
What the heck is going on? Of course affluent people have all the money and time in the world to choose experiential luxury – as Pam continues in her newsletter, but what was interesting was that she found: “Consumers at every income level, every age range, across the board, favor luxury experiences over home or personal luxuries.”
So, people with lots of money want experiences and people with less money want experiences. If we of lesser affluence (and that would be most of us, correct?) do decide to buy “things” as opposed to “experiences,” we are inclined to seek formerly affluent-only luxury product lines by way of new, less expensive brand extensions (like those at Target or what Godiva is offering).
This all seems to be causing the super-duper affluent marketers to raise the bar. Today’s Stuart Elliott column in the New York Times is entitled: “Cole Haan Is Hoping to Take High-End Even Higher.
How, praytell, could I possibly tie this all to marketing to women? Here’s a try: if the experience or the “how” of buying is critical to a woman’s purchase decision-making process, then excellent experiences of every little kind are desired along the way. But, the degree to which something is a luxury for one person versus another person is the key.
For the average gal, a pedicure at the quick-nail place in the mall might be a luxury. To someone else, a weekend at Canyon Ranch spa is where luxury starts, because she gets a weekly pedicure as a matter of course. To someone who can do without a week on the beach in the Cook Islands, their luxury might be a yoga/snowboarding retreat in Colorado. Depends on whose perspective you’ve got when considering the possibilities.
I could go on, but I’ll finish for now. If luxury is in the eye of the beholder, and if those are the eyes of your women customers – it makes sense to create incredible customer experiences or life experiences (if that is the service you offer) at each level. When you deliver your products or services in a way that feels like a great experience to women, you’ll win. Whether you are car wash with the right idea, as Michelle Miller of Wonderbranding blogged about recently, or the neighborhood florist, re-examine the experience you offer your customers and offer luxury to the masses.
