Not About the Experience Anymore

Posted by on May 25, 2013 in Uncategorized | 0 comments

In the good old days of retail stores, luxury retailers made the sale because of the experience of their consumers.  The look and feel of their location, decorating, environment, etc were all part of making a sale of high-end goods.

Times have changed as new forms of advertising inform customers more about the features, benefits, and luxury of the actual product.

Via Forbes Magazine:

(The) new luxury experience is in ownership. People want nice things more than
they want nice service. The luxury industry was shocked when it learned that
luxury consumers loved to (shop) at Costco, a warehouse style store that is
anything but fancy but also sells luxury vacations, furniture, high-end
timepieces, and $100,000 pieces of jewelry. A feeling of disgust fell on the
faces of luxury brand executives when they saw their goods sold via online
auction side eBay or Amazon – arguably the world’s largest shopping mall.
That however was in the beginning, and luxury brands are feeling friendlier to
places like eBay and Amazon because sales numbers prove their fears to be
without merit. The real fear however was that these mainstream shopping
experiences would devalue their high-priced goods, because they were not
being sold in a luxury environment. Nevertheless eBay and Amazon continues
to sell high-value goods at large volumes. Gucci for example has made their official authorized online retailer.

Consumers at all price levels want good service that is hassle-free and simple.  They are very informed and do not need a salesperson to steer their decisions.

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