Consumers moving toward self-enlightenment
Staff -- Home Accents Today, 1/1/2005
Nearly halfway through the luxury decade, Unity Marketing President Pam Danzinger predicts consumers' interests soon will shift away from self-indulgence and toward experiences to develop their inner spirit.
The inevitable end of the luxury decade is already beginning to take shape, Danzinger said, following the model of the contemporary consumer marketplace being defined by macro trends that last about a decade. For example, the 80s was the decade of the mall with the rapid rise of enclosed shopping malls. The 90s changed that as the age of the discounters emerged so today Wal-Mart controls nearly 10% of all money spent at retail.
By 2010 the baby boomers, the new generation of luxury, will be 46-to-64 years old. Starting around age 55, shopping and buying patterns begin to change and take a more dramatic shift after age 65.
Baby boomers reaching their empty-nesting years already embrace the idea the goal of shopping is not to accumulate but to achieve a new kind of experience, both delivered by the product itself and through shopping.
For example, home furnishings deliver a comforting experience while dishes and tableware deliver an enhanced dining experience and fashions deliver a beauty experience. As for the shopping experience, there's the thrill of finding a bargain, the convenience of Internet shopping or the fun of exploring boutiques.
Danzinger expects the next experience consumers will strive for will be directed toward doing good for family, friends, social circle, neighborhood or culture.
These changes will evolve, which is one reason early warning signs may be easy to miss or ignore. But things will not keep on the same track forever. It already is beginning to shift and we need to become attuned to the subtle changing signs of the times, said Danzinger, an author and consumer researcher.
Luxury marketers who have learned the lesson of selling to consumers' experience will be well positioned to evolve their business model into the new age of experiences Danzinger says will start around 2010. Savvy luxury marketers are getting ready now for the paradigm shifting changes already taking shape.
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