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CONTACT: Visibility, Len Stein, 914-712-2610

Luxury Bargain Shopping - Oxymoron, but Reality Today
Buying luxury brands on sale gives shoppers an experiential thrill

October 25, 2003 Stevens, PA - When affluent shoppers go shopping for luxury, the majority go looking for and finding a bargain, according to new research on the luxury shopper from Unity Marketing.

"Affluent shoppers, i.e. those who can afford to pay full price, are not choosing to buy Manolo Blahnik shoes at Bluefly.com or Issac Mizrahi at Target because they need to save money," explains luxury marketing expert Pam Danziger, president of Unity Marketing and author of Why People Buy Things They Don't Need. "They do it for the psychological reward they get from being a good shopper."

"They seek out luxury products on sale because it is fun to find a bargain. They get a thrill beating the shopping establishment at their own game. In effect, the shopper wins and the store loses. Shopping for luxury bargains isn't about saving money. Rather it's the excitement of discount shopping that drives the affluent consumers to seek out bargains," Danziger says.

"As luxury marketers, we have been trained to think that the discounting of luxury goods devalues the brand. But research among the luxury consumers doesn't support that assumption. The luxury shopper is a savvy shopper who knows where to find the best price. And increasingly she is turning to the Internet as the fastest, easiest and most convenient way to search out the top luxe brands on sale," Danziger notes.

Unity's research found that buying luxury products on sale or discounted off the regular list price dominates the luxury consumer marketplace. In the latest survey among luxury shoppers a majority of affluent consumers made their last luxury purchase on sale or at a discount in 13 of the 14 product categories tracked.

The lone exception was the fragrance and beauty products category. About two-thirds of the luxury shoppers report they made their last fragrance or beauty products purchase at full price. Accounting for more full-priced spending was the fact that this was the only consumable product included in the survey. Danziger explains, "When you run out of your favorite lipstick shade or skin care lotion you can hardly wait for it to go on sale. But in every other luxury category, from art & antiques, automobiles, electronics, fabrics, wall and window coverings, fashion apparel, furniture and floor coverings, garden and garden products, jewelry and watches, kitchenware, cookware and housewares, kitchen appliances and bath, linens and bedding and tabletop, discount shopping predominates."

The market research report, Luxury Market Report 2003: Who Buys Luxury, What They Buy, Why They Buy, delves into the buying behavior and shopping habits of the luxury consumer. It is based upon integrated qualitative and quantitative research, conducted in association with House & Garden magazine, among moderate affluent (incomes of $50k-$99.9k) and super-affluent consumers ($100k and above). It analyzes consumers' purchase behavior in 14 categories of luxury products and seven luxury services in the past year. This 200+ page report is available from Unity Marketing. For more information about the report and to order a copy, Click here.

About Unity Marketing
Founded in 1992, Unity Marketing (www.unitymarketingonline.com) is a marketing research and consulting firm that specializes in consumer insights for luxury marketers. Using its proprietary "why people buy" strategy, Pam Danziger, company founder and author of Why People Buy Things They Don't Need (Ithaca, NY: Paramount Market Publishing, 2002), uncovers the motivations, desires and emotional needs that drive consumers to buy. Unity also publishes market research studies on the luxury market, art, jewelry, gifts and collectibles, home furnishings, cosmetics and personal care markets, as well as the Luxury Business newsletter. Pam is currently working on her next book, Let Them Eat Cake: Marketing Luxury to the Masses (as well as the Classes), to be published early in 2004.

Contacts:
For more information about the report, contact Pam Danziger, 717-336-1600; pam@unitymarketingonline.com
To arrange an interview or other media inquiries, contact Len Stein, Visibility, 914-712-2610; lens@visivilitypr.com

About Unity Marketing
Founded in 1992, Unity Marketing (www.unitymarketingonline.com) is a marketing research and consulting firm that specializes in consumer insights for luxury marketers. Using its proprietary "why people buy" strategy, Pam Danziger, company founder and author of Why People Buy Things They Don't Need (Ithaca, NY: Paramount Market Publishing, 2002), uncovers the motivations, desires and emotional needs that drive consumers to buy. Unity also publishes market research studies on the luxury market, art, jewelry, gifts and collectibles, home furnishings, cosmetics and personal care markets, as well as the Luxury Business newsletter. Pam is currently working on her next book, Let Them Eat Cake: Marketing Luxury to the Masses (as well as the Classes), to be published early in 2004.