Sunday, May 23, 2010
Book Review: "Putting the Luxe Back in Luxury " by Pam Danzinger
The Sunday San Diego Union-Tribune says what all of us are feeling: Homeowners slowly open wallets for improvements. We've certainly noticed a pick-up in business and we are seeing long-lost interior designers in our store. However, Pam Danziger, President of Unity marketing, says in her new book, "Putting the Luxe Back in Luxury," that the consumer is different from the one we knew from 2000 to 2006.
First, Danziger writes, there has been a demographic change in the luxury consumer. More than half of luxury consumers were in the $100,00 to $149,000 annual income. Now, more numerous luxury consumers are in the $250,000 incomes and up and many of of the lower income luxury consumers have dropped out. Where once there were over 21 million consumers in the $100,000 and up bracket, there are only 2.5 million in the highest income level.
Second, there appears to be a "luxury drought." The luxury drought is characterized by affluents sharply reducing their spending on luxury as they reevaluate, reprioritize and reassess their lifestyles. No longer valid is the motto: He who dies with the most toys, wins. Now there is evaluation of ones lifestyle.
Third, luxury brands lost their "mojo." Is it really worth it to pay ten to fifty times for a luxury brand name product.
Part of the reason for this shift is Fourth, the recession has consumers rejecting their materialism. for the goal of achieving personal happiness and fulfillment. After all, when you are dead and gone, maybe all that's left is stuff that your kids put in a box and place the box on a shelf in the garage.
You can download the first chapter of "Putting the Luxe Back in Luxury" and sign up to receive a signed copy of her completed book.
Bev & Mike
Landfair Furniture + Design gallery
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