Press Release

 

Style & Design Is Tops In Influencing Luxury Consumers to Buy Fashion

Latest study of factors that influence luxury consumers in their purchases released by Unity Marketing

Stevens, PA September 20, 2006 - When it comes to buying new luxury fashions, it is all about the style and design, according to the latest survey among luxury fashion consumers from Unity Marketing.

"Sales of luxury fashions tumbled in the second quarter, down 25 percent, compared to strong sales in the first quarter this year," says Pam Danziger, says Pam Danziger, president of Unity Marketing and author of the new book Shopping: Why We Love It and How Retailers Can Create the Ultimate Customer Experience. "How the luxury fashion industry will fare through the rest of the year and beyond is a function of how well designers and retailers dress the typical luxury consumer who is 40-something years old."

The 'new luxury' fashion consumer is first and foremost interested in choosing styles and designs that are suitable for her figure and lifestyle. Some 61 percent of luxury fashion shoppers rated style and design very important in influencing her most recent purchase.

The next most important factor is 'good value for the price,' rated very important by 54 percent of luxury fashion buyers. "Today's luxury consumer is extremely value-conscious, looking to get the maximum value for her fashion dollar. Hardly cheap, she is perfectly willing to spend big bucks on fashion that provides real value, but she is not willing to spend on fashion that doesn't reflect superior quality in materials and workmanship or careful attention to details that she prizes. Designers and retailers need to design for this highly discerning, value-driven consumer," Danziger explains.

The Store Outranks Brand In Influencing Luxury Shoppers to Buy

Shopping in a store that the luxury consumer knows and trusts is the third most important factor, rated very important by half of the luxury fashion shoppers. The store ranks ahead of the brand or designer, very important according to 47 percent of buyers. "This finding highlights the critical role the store merchandisers and buyers play in the fashion business. The buyers need to know their customer, understand her needs and carefully select those brands that match the shopper profile," Danziger says.

Rounding out the list of the most influential factors in luxury fashion shopping is finding the fashions she wants on sale or at a discount, rated very important by 45 percent. "Shoppers will pay full price for the most current fashions that represent the ultimate value, but they also value buying last season's designs for less. The fact is a sizeable percentage of shoppers, even affluent ones, rarely pay full price for anything. They simply don't have to because they know where to find the best deals," Danziger explains.

In Luxury Fashion, Advertising Doesn't Count for Much

Among those factors which least influenced fashion shoppers in their most recent purchases were exclusivity (rated very important by only 20 percent); recommendations of friends (18 percent); internet research (12 percent); articles and reviews (11 percent); and advertising (9 percent).

"According to shoppers, advertisements didn't influence them when it came to making their last purchase. However, advertising, as well as articles and reviews, are of critical importance in communicating information about the latest styles and designs, building awareness and trust in specific stores and exposing consumers to different designers' sensibilities. So while advertising may not drive shoppers in their purchases, it plays an indirect role in the fashion sales equation," Danziger says.

The full results of Unity Marketing's survey on what influences luxury shoppers to buy in 22 categories of luxury are published in the Luxury Tracking Study 2Q2006: Luxury Purchase Motivations and Influences on Purchase (http://www.unitymarketingonline.com/reports2/luxury/luxury2Q2006.html)

About Unity Marketing's Luxury Consumer Tracking Study

Every quarter Unity Marketing conducts a Luxury Consumer Tracking Study among 1,000+ luxury consumers. Year-end 2005 statistics compiled from the four 2005 tracking studies will be published in Unity Marketing's Luxury Report 2006 - Who Buys Luxury, What They Buy, Why They Buy (http://www.unitymarketingonline.com/reports2/luxury/luxury1.html)

In the tracking study detail purchase information is collected on these categories of luxury:

Home Luxuries:

• Art, Wall Décor & Antiques
• Electronics and Photography, such as computers, televisions, home entertainment centers, cameras, PDAs, etc.
• Home Decorating Fabrics, Window & Wall Coverings
• Furniture, Lighting and Lamps, and/or Floor Coverings, including rugs
• Outdoor, Lawn, Patio & Garden Products, such as lawn furniture, patio accessories, plants, grills, etc.
• Kitchenware, Cookware & Housewares
• Kitchen Appliances and Bath & Building Products, such as cabinets, bathtubs, etc. for home remodeling
• Linens & Bedding
• Tabletop, Dinnerware, Flatware, Servingware, Decorative Accents

Personal Luxuries:

• Automobiles and/or recreational vehicles, such as boats, RVs, etc.
• Clothes & Fashion Apparel
• Fashion Accessories, such as handbags, wallets, suitcases, shoes, etc.
• Fragrance, Cosmetics and/or Beauty Products and Skin Care regimes
• Jewelry
• Watches
• Pet Products
• Wine & Spirits
• Pens & Writing Instruments

Experiential and Luxury Services:

• Travel and vacations
• Dining and restaurants
• Entertainment
• Personal and health services, such as beauty treatments, spa, massage and cosmetic procedures, health club, country club, etc.;
• Home services, such as landscape, housecleaning, home remodeling, home decorating, party planning and catering, etc.

Luxury brands & magazines

Also included in the tracking study are measures of luxury brand awareness and usage as well as magazines luxury consumers purchase. http://www.unitymarketingonline.com/reports2/luxury/brands.html provides a listing of brands.

How to Subscribe

This is a semi-custom research service with subscribers adding specific product categories and their brands and the brands of five key competitors to the survey. In addition, subscribers can add up to six personal questions to the survey through the year. Use this link for more information about subscribing to luxury tracking http://www.unitymarketingonline.com/reports2/luxury/luxurytracker_reg.html, or call Pam Danziger at 717-336-1600.

August, 2006 (About 100 pages)

Published Price Full Report, including brand rankings: $2,500

Executive Summary Topline 2Q2006 Results: $750

(Please Note: With the purchase of a report, subscribers may apply the subscription fee for 2Q2006 report to annual Luxury Tracking subscription)

Contact: Pam Danziger, 717-336-1600

For media: Charts, tables and graphs are available on request.

About Pam Danziger and Unity Marketing
Pamela N. Danziger is a nationally recognized expert specializing in consumer insights for luxury marketers, whether they sell luxury to the masses or the 'classes.' She is president of Unity Marketing, a marketing consulting firm she founded in 1992.

Advising such clients as Lenox, Cartier, PPR, Rémy Amerique, Phillips/Norelco, Stearns & Foster, Prudential Fine Homes, Baccarat, The World Gold Council, The Conference Board and American Express, Danziger taps consumer psychology to help clients navigate and master the changing luxury marketplace.

Her latest book, Let Them Eat Cake: Marketing Luxury to the Masses-as well as the Classes, (Dearborn Trade Publishing, $27, hardcover) is in book stores now. She is the author of the recent book, Why People Buy Things They Don't Need: Understanding and Predicting Consumer Behavior (Chicago: Dearborn Trade Publishing, 2004).

Her new book, Shopping: Why We Love It and How Retailers Can Create the Ultimate Customer Experience, will be published Fall 2006.

Back