In a recent research on the luxury market. We have come up with a few questions you might be wondering with the luxury market in the recession or "hard times". Are luxury people loosing money or do they ride high in any economy? Read on and see if you get the jitters of longing to be wealthy some day. Maybe for a week, a month, or a liftime.
Sergi Shoes, Why is the luxury market important?
"The luxury market represents the highest quality. It defines great design, craftsmanship, quality, and a lasting value to certain products. Luxury is not just about being trendy, but having the aesthetic components to become a pedigree which will last hundreds of years. The idea behind a modestly priced item is that you buy for the long-term which in return saves you from buying excess products. For example, if you talk about products made out of plastics, these products will be timeless because a material like plastic will last you a tong time. As far as luxury in fashionable shoes, black pumps are considered classic and have survived the test of time because it has a certain design and aesthetic which can be altered, but remains a timeless product. For instance, leather products and accessories have a high value to them. Leather defines its products by the strength and resilient of the material. You can wear leather products at work while still be able to feel and look sharp later that day at a dinner or special event."
Sergi Shoes, Where do you see the luxury market going? Will it continue to thrive?
"It will continue to grow. Typically, the luxury market does better in boom years and the regular economy follows. In a recession, which includes the past recession we have just had, the luxury market underforms. The catalyst to the growth in the luxury market will be the human psychological value. This is comprised of the need to have a symbolic value and functional value towards each humans own characteristics. Trends in the luxury market has and will continue to be highly dependent on this concept. You should also know the luxury market has been and will be based on two things: women and browns. When a brand has products devoted to these two things they have acheived the demanding market for continued success. The way you treat your customers has a direct reflect on how good your sales are performing year in and year out. The principle of great service will be part of a brands future success. The way brands treat their customers will decide whether the same people who walked in the first time will remember you the second time around. People want great service. Simple as that. When great service is acheived you create a certain relationship between the brand and the customers. This relationship is hoped to be transfered into a long-term relationship which creates sales connectivity and most importantly, an increase in repeat business. For a brand to establish itself as a brand they need to understand that people matter tremendously and you need to treat your customers well to grow as a brand."
Sergi Shoes, Can luxury brands from all sectors keep competing? Will some disappear or others take control?
"Customers of big brands will continue to buy through a recession. The popular and well known brands will continue to exist during a recession. What we have seen most often in a recession is that new brands appear and innovation shows up more often than other economic times. Unfortunately, these new brands have difficulty securing funding capital and are forced to leave the market completely which also hurts the growth of innovation in these new brands. Innovation is what we want to see nowadays come out of a recession. Luxury is not dead and it will not die. There will always be a market for luxury brands. Small brands are vulnerable in a recession because of the lack of capital available and customers are hard to come by as they tighten up their belts and spend only on what they need not what they can splurge on."
Sergi Shoes, What do brands like Tommy Hilfiger, Harley Davidson, and Mercedes Benz need to do to continue their success?
"When you talk about Premium Brands or High Premium Brands customers expect a certain combination of classic and contemporary looks versatility in new designs. Take for instance Tommy Hilfiger, this brand has been able to offer their customers timeless products for diverse functions whether it be something to wear for the office, as a leisure, or for activity use. This goes back to the point I made about plastics, which is a product that will last long. These brands stick to manufacturing products that are timeless and are limited in manufacturing."
Sergi Shoes, Should luxury brands always give customers what they want? Is the customer always right?
"Brands should be conscience on what they are selling. You have to take into account the people who you want to buy your products. The luxury market needs to provide its customers with more irreverant designers. The Jackson Pollocks who push the envelope in design and create evocative products. We need more room in the market for these types of designers. If you look at the arts and sciences, you can see that more brands are more mainstream. In luxury brands the concept is different. This indifference supports the importance of feedback from supplies optimize visual models."
Sergi Shoes, Do you think the luxury market will save the economy?
"Absolutely not. The luxury market only accounts for 5 percent of the economy as a whole. What will save the economy are boosting healthcare, manufacturing, and most importantly, jobs. There needs to be the availability of jobs for collective citizens. In order for jobs to be productive there needs to be a mix of job security, enough money people can make to earn a living, enough money people can save for the future and enough money to spend so they can splurge on. There also needs to be enough jobs for the young professional market in order for them to spend on at a higher rate. As the young professional market spends, they will define the style and productivity of current and future brands."
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