According to a panel discussion on marketing in the recent Wharton conference to say, as soon as 2009, the pursuit of luxury goods generations face the most challenging year, marketers used to lock the fashion-conscious young girls and rapid expansion into the new rich of Russia or the United Arab Emirates group marketing plan suddenly “obsolete.” Now, in the difficult years marketing luxury goods, “popular” approach, is to cater to the richest and most loyal customers, from a printed letter combination patterns (monogrammed) shirts and even private homes to visit.
“I do think that luxury is the basis of customer service – which we often hear,” a panel discussion by Corey • Jia Peng (Cori Galpern) said she was Tom • Ford International (Tom Ford International) the world Marketing and advertising director, where the growth is the cradle of fashion designer ring. “I think we will find that the economic crisis have lost a number of fashion-conscious customers. Those who will buy in the year, a dozen people were shoes, they are another choice. Luxury brand’s core customers are really rich. ”
Who in the next two years is still extremely rich, and how they would spend their disposable cash, which is lingering in the minds of the panel discussion were the problems inside, including some prestigious luxury and high-end clothing brands Senior Marketer, these brands include Gucci (Gucci), Prada (Prada) and even Ford and Tom • L’Oreal (L’Oréal).
Support your brand
Panellists agreed that the economic downturn, even high-end consumers will find themselves hard-pressed to follow the consumers living in the bottom of the socio-economic level is a bad strategy. “We do not want to see significant price reductions for brand Ershi become cheap,” L’Oreal Paris skincare brand manager Brad • Farrell (Brad Farrell) says, “because you do not want to damage their brand image. After all the dust down, and you still want to maintain your brand reputation. ”
Indeed, the deepening economic recession has become a luxury product marketing gurus such a hot topic, but the surprising thing is that this topic so hot, so they are almost too busy meeting scheduled to discuss the theme: “In the flat world lock the new luxury consumers: find the global luxury goods market in the development of opportunities. ”
Several panel said their companies will remain confident in the next few years, and will to the world’s fastest-growing economy to expand, including the so-called “BRIC” countries: Brazil, Russia, India and China , and the rich in the Middle East oil resources. But they added that the rapid development of the financial turmoil may hinder their most ambitious ideas. Alexander • Jile Si ratio (Alexandra Gillespie) served as senior vice president of Gucci Group, the creation of marketing to luxury goods group based FLR, she “over-concerned about the luxury goods industry in emerging markets,” warned, because these market also affected by economic downturn.
Many experts believe that the deepening economic recession brought about by the economic pain will fall disproportionately on those marketing high-end perfume, fashion or fine jewelry marketers who fashion. In the Bain Company (Bain) 10 Month Release of the investigation report, including footwear, jewelry, fashion luxury goods industry, including individual slowdown signal has occurred; According to the survey report estimates that if current trends continue, 2009 sales will decline 3% -7%. Ji Lesi than insist that “2009 will be the luxury goods industry, the worst year in history.” Her former employer’s parent company Gucci Group, recently reported that, due to the economic downturn, the Group is the 2005 third quarter efficiency Since the worst.
Some observers pointed out that in these difficult times, conspicuous consumption seems to have become un-American practice. Well-known trend analysts Feith • Bo Pukang (Faith Popcorn) has recently pointed out, “If you pass by [New York] Madison Avenue’s Fendi and Prada stores, you will find these shops already wants to come. Women They are shopping in their wardrobe. Even if you can afford, you will feel embarrassed to buy. ”
But Wharton is not clear during the panel discussion there will be such boring argument. Several panel discussions have pointed out that their core customer base, the really rich, you may cut some discretionary spending, but not on luxury purchases were “across the board.” Prada (USA), marketing and advertising, executive vice president Randy • Cabat (Randy Kabat) pointed out that about 50% of sales from 5% of the clients, but she worried about a possible lost during the recession Some so-called “fashion-conscious” middle-class consumers – those who buy brand-name bags when the young girls who spend big bucks.
Group discussions felt that the results of the economic downturn, consumers may look forward to lower prices of some high-end products to sell. L’Oréal Farrell said that a significant measure is, as long as there is no genuine perfume diluted, can be installed in the smaller perfume bottles for sale. , “Brand integrity still remain, but product prices to be more accepted by consumers in the market today.” Farrell added that a similar approach, is to ensure that an important part of the product style can be more by the mid-market retailers such as Target stores even sell skin care products, CVS and other grocery store, because the economic downturn, even the high-end U.S. consumers may go to these stores for shopping.
The key is not to take anything that could damage the value of well-known luxury brand of measures. , “Good management can withstand prosperous and difficult times, fashion will not change,” Patrick • Appleby Charles lutcher (Patrick Abouchalache) said he was New York investment company Roberts • Mitani (Roberts Mitani) Managing Director, responsible for analysis of the retail sector, “You must adhere to in the end.”
Panellists agreed that the high-end luxury consumer packaged goods companies and large companies compared to both marketing and branding issues are very different with the latter usually vacancies in the market looking for a certain size, and then create new products to fill such vacancies. For luxury, they pointed out that the business plan depends on the designer’s artistic imagination, and hope in order to attract consumers.
“You’re buying high-end fashion goods, when, in fact, in the purchase of a way of life,” Prada’s Cabat said, “You buy some perspective, these views is reflected through the product The. “Miao Thea • Prada (Miuccia PRADA), who in the 20th century founded the company 70’s prototype of the Milan designers, is very pleased to marketing new products to the other person, so she could concentrate on the European fashion shows, card Butt said. “She got the freedom to create new, while for her new fashion ideas.”
Times Square billboard is not set
Because they must portray the image of luxury, these marketers say they want to not take the company public goods approach to protect the company’s brand. • Tom Ford Ka Peng pointed out, the company has refused to set up in Times Square digital billboards, as it is not enough high. • Tom Ford’s perfume to Chanel as the company’s competitors and asked, “Chanel will establish a billboard in Times Square, right?”
However, this does not mean that luxury goods companies do not want their products to reach a mass audience. Indeed, Cabat on what she calls “Target” of the trend of praise are added, this mass merchandise stores across the United States Target to provide customers with a high design aesthetic, and these customers than the rival chain’s customer strategy were high. However, she is still that the U.S. can further foster the appreciation of fine design. “In Europe, fashion and design [is] an integral part of culture, but [they] are not part of American culture.”
Indeed, the luxury goods marketers think they can successfully create a demand for such a halo, it allows them to ultimately survive the financial crisis, crisis. This may be counterintuitive, but Charles Albertine lutcher that of Cheerios cereal and other consumer goods is limited, in part, on the demand for luxury goods is unlimited. “A time when times are hard, you’re on the way home, and you have to buy the bag … … but by the different factors to drive purchase behavior. Customers can always use another bag of.”
But in order to increase profits, the company may now pay attention to fashion their best to meet the most loyal consumers, the progressive use of computer technology to provide high-end products tailor-made service the needs of specific customer design or cut. Panellists said the personalized luxury goods (such as clothing or glasses design) enables the success of our customers coming back as frequently patronize.
“Everyone wants a stylish way of life – they want to have your product 10-15 years,” Appleby said Charles lutcher. Designer tailor-made luxury goods, including letter patterns of the bag, on a color or an ornament of the structure of individual choice, or “personality” of the fragrance series. Prada is a simple and elegant design nylon backpack started the company, Cabat that Prada is focusing on using a similar approach, “lets customers tailor-made feel special and unique” .
“This is not the time to panic,” Ji Lesi than added, she was referring to the current difficult economic environment, “is now defined and redefined, when the brand.”
Ironically, the discussion group on the short-term prospects for emerging markets overseas, there is no special interest, but their companies to continue in the positive orientation for the right time. For example, Tom Ford International, Inc. has licensed • Beijing, Hong Kong and Dubai set up franchise stores, because the company considered important in Asia, Dubai; company also talked about the marketing plan customized for the Middle East’s men called “Di Shasha” (dishdasha) robe.
L’Oreal for Farrell pointed out that many of the needs of European countries, particularly from eastern Europe, Russia, 2007 and 2008, soaring oil prices as oil-rich countries of Russia. But he worries that the financial market bubble will soon burst, and added that “You really have to be careful.”
Despite the tense situation in the global economy, but the luxury marketers said their main task will remain unshakeable: the way of life will be more attractive to sell to fashion-conscious consumer. “Do you buy that dream,” Cabat said, “You buy that gorgeous theme, and this is our job.”
News | mysite May 31, 2010 | 
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