A regular review of interesting cultural shifts & marketing developments as viewed through the collective lens of the Stancombe Research + Planning Team

Friday, April 17, 2009

luxury / consumption

There has been some much talk about the economic downturn and how it is impacting the consumer where it counts ... spending in retail. Well, undeniably, there has been an adjustment.

Now more might think before they buy (or not buy as the case may be) and perhaps we are trading down to quality budget buys where no real value exists in the premium end of the market. This raises questions, lots of them: What is the power of the brand, how is value determined by consumers, do premium brands deliver to expectations in this new economic world order, do we all really want to conserve?

Undoubtedly, some segments of the population do want to conserve (and thank goodness for them) yet aspiration is an important aspect of who we are, it is a form or dreaming, desire, hope and sets us in motion to achieve a goal. Surely in a developed world where most of us of working age aren't unemployed (less than 5%?) and have good incomes. lowered cost of living (reduced mortgage repayments, subsideised cost of entry to the property market, reduction in grocery bills, sales, sales and more sales) well things just aren't that bad. How can we make the most of this new age of frugality?

Check out the SMH article on how luxury brands are surviving or even thriving in the economic downturn...luxury in tough times

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