Relishing the luxe consumer
Becky Boswell Smith -- Home Accents Today, 3/1/2007
Everyone, including us, seems to have discovered and embraced the luxury consumer. She's the current hot topic of conversation among retailers and vendors and she is the reason you are getting a copy of the second issue of Relish with this month's Home Accents Today.
After all, she's a dream come true — money to spend and the inclination to spend it. Add to that her democratic tendencies of liking to shop at Target as well as Neiman Marcus, Costco and Sam's Club, not to mention the local upscale shop.
According to the latest census, households with $100,000-plus incomes make up 17% of all U.S. households and that's projected to grow to 22% by 2010. A nice number, indeed.
The other important group of luxury consumers is those for whom a certain piece is worth the sacrifice. An upscale Montana furniture store owner told us he sells more $8,000 to $10,000 sofas to schoolteachers than to $100,000-plus households.
"For them, it's like a buying a car. They're going to keep it for a long time," he said.
Geoffrey Ross of Dransfield & Ross says it well: "I think there's an understanding of quality and integrity of design that has nothing to do with whether a person is making $50,000 or $500,000."
For retailers, a major challenge to serving luxe consumers is maintaining a high level of service with perks, as well as well-informed sales staffs who can sell the value of the product. In short, creating a shopping experience.
In the Business Update on lighting in the March issue, note what Christopher Mumford, CEO of Frederick Cooper, said. Advising the high end to be clear about what it stands for and what makes its product distinct, he said, "We have also committed to fast product delivery because luxury does not mean having to wait until forever."
To me, that's the important message — people are willing to spend the money, but they want what they want when they want it. It's all about service, isn't it?
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