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Pamela Danziger of Unity Marketing has just published an article summarizing a new study on the luxury consumer which underscores the power of Barefoot’s positioning and the premise of the whole area of “Trading Up.”  The article is called “Luxury Marketers:  What if Shoppers Just Aren’t That Into You?” Here’s an excerpt:

The second quarter Luxury Tracking Report, based on a survey of some 1,000 luxury consumers (average income $155,500 and who spent an average of $15,283 on luxury in the second quarter of 2007), reports fully one-third of the affluent consumers surveyed said that while they have been fortunate to enjoy luxuries in their life, that “luxury is not a part of my lifestyle.”Another 27 percent admitted to scaling back on some purchases in order to afford luxuries in areas that really matter to them, but for these occasionally indulgent affluents, high-end luxury living is not a part of their every day life either. This means that three out of every five potential luxury consumers is able easily to walk past the high-end stores and brands calling their name.  

This excerpt highlights a couple of points that I want to elaborate on. The first is that even when someone can afford to be a luxury consumer they don’t choose to be a luxury consumer in every category. The second is that even affluent consumers will cut back in some areas to indulge in others. That “rocketing” behavior is no surprise to us at Barefoot, and understanding that dynamic is key in how you talk to these consumers about your brand.The last part of the article draws the following conclusion:

“Instead, marketers need to convey to the reluctant luxury customer why their product or service is a smart choice as that occasional treat. They need to emphasize the superior quality, workmanship, materials, or service that they provide and work hard to make customers see why it is worth “trading up” to their brand of luxury item,’ Danziger concludes.  

Those familiar with how we approach these consumers will recognize that as perfectly describing what we call Reasons To Rationalize®. You can’t just expect a high-end or luxury brand name to create the desire and the purchase, you have to help the consumer understand and rationalize why your product or service is worth the extra investment.It’s great to see a study validating the path we’ve chosen to pursue as an area of growth for our agency. Thanks Pam!