THE DEATH OF LUXURY BRANDS

The Death of Luxury Brands

The Death of Luxury Brands

Introduction

The underlying premise of this study of luxury buyer mind-set is simple: Changes in buyer demeanour (Michman & Mazze 2006: 57) what they purchase and how much they spend pursues alterations in their mind-set -- why they buy. This report focuses on affluent consumers' underlying mind-set and motivations in their luxury buys and luxury lifestyles.

Discussion

It examines how affluents are answering to the present recession, as well as their general sentiments, mind-set and motivations that propel them to chase a luxury way of life in general. (Assael 2005: 396) The aim is to realise how the affluent consumers' mindset and psychology is making over the luxury market and conceiving a 'new normal' for luxury marketers in the future. Specifically, the study goals of this study are to:

Understand what luxury means to affluent shoppers today and if their notion of luxury has altered since the recession began;

Explore consumers' insight of their very well liked luxury brands and if they are swapping down to less costly brands;

Define what 'value' means in the consumers' buying psychology and how affluents understand 'value' when contemplating a specific purchase; (Michman & Mazze 2006: 57)

Understand how sale charges and discounts leverage luxury buyers in buys of both luxury items and services;

Learn how the recession is altering these luxury consumers' lifestyles;

Compare luxury consumers' general mind-set about their luxury ways of life today with how they sensed in 2007, former to the recession and financial crisis;

Identify the personalities that make up the present luxury market; and(Assael 2005: 400)

What the alterations in luxury consumers' mind-set and motivations signify for the future of the luxury market.

Being forewarned is forearmed. This study presents marketers facts and numbers and insights they can use to design for the future. The past two years have been a time span of spectacular change in the buyer finances overall. High job loss, down turn in the lodgings market, and the international recession have strike buyers at all earnings grades, but exclusively in this present market it has initiated dislocation and anguish amidst the affluent buyers, characterised as those with earnings corresponding to the peak 20 per hundred of U.S. families with mean earnings of about $200,000. (Michman & Mazze 2006: 62)

In times of spectacular alterations like these, numerous analysts gaze to the past and what occurred in other recessions to help forecast the ...