Q: Are we entering a new era of smart, frugal shoppers? If so, how will luxury retailers cope with this?
A: Consumers are becoming more frugal, but that’s because they are scared right now. That doesn’t mean that they will continue to be frugal when the economy improves. They still want the things they’ve always wanted, and as we enter a more positive atmosphere they will go back to the spending habits they once had, as long as circumstances (such as credit) don’t prevent them from doing so.
The most important thing for luxury retailers to do right now is to stay in touch with their core customers and what they want. And make sure you continue to show them new product that excites them. The same old brands and styles will not be enough to get them shopping again.
Date answered: 04/20/2009
Question raised by: lux seller