From a recent Accenture Consumer survey:
“Do you consciously pay more for a luxury item
at a brand store than a discount store?”
Yes – 59%
No – 41%
Granted, it’s close, and they’re talking about brand stores (ex: Coach), but…the key word here is “consciously.” Consumers seeking luxury goods are willing to bypass discount outlets in favor of quality, even though they know it will cost a bit more. For upscale retailers, that’s good news, regardless of whether they’re a national brand or an independent, locally owned boutique.
Bottom line? If you have the goods, and can back it up with top notch service and an equally matched environment, your customers are willing to skip T.J. Maxx and head your way. Just need to be sure (a) they know you’re there, and (b) you’re worth the trip.
Source: Accenture Consumer Luxury survey of adults 18 or older who purchased luxury items during the 2009 holiday season
Click here to tell me what you think....
Quality and reliability are significantly important. Our company and myself personally are built on Integrity. In my business it’s great to save someone money and help reduce their expenses. However, without the quality of service to back it up, you might as well just go with anyone. I help business owners by eliminating some of their expenses without adding on extra hidden costs.
After all, we maintain the lowest attrition rate in the industry and we treat our customers and merchants fair.
Michael Sweitzer | VP Northeastern Sales
Merchant Services LTD
I’m noticing that my storefront dealers are bouncing back a lot faster than some of the home dealers. While I disagree that all home dealers are shady discounters (I work with some fantastic home dealers that give great service at full retail) however I think that it is a little easier to associate “luxury” with a retail storefront than a home studio, and consumers are demonstrating where they’re willing to splurge.