One Voice: Wooing the Luxury Market
There is no better time than a CEDIA EXPO to talk about what our industry does right and wrong. One of the things we have to re-address in a big way is the luxury market.
As I write this, Nordstrom has a waiting list for a Chanel sequined tweed coat with a $9,010 price. Neiman Marcus has sold out in almost every size of Christian Louboutin “Bianca” platform pumps, at $775 a pair. Mercedes-Benz said it sold more cars in July in the United States than it had in any July in five years....you cannot tell me there isn’t money out there. The recent CustomRetailer survey we have just completed—that my publisher, Carol Campbell, talks about below—netted many interesting results. One in particular was 26 percent of respondents said that total annual custom installation sales volume of their company is $1,000,000 - $4,999,999, and 12 percent said over $10,000,000.
According to a recent New York Times piece, “Many high-end businesses are even able to mark up, rather than discount, items to attract customers who equate quality with price. The luxury shopper is looking for intrinsic value in the pricing.” I say, convince them of the value and you’ve made the sale.
Additionally, the luxury category has posted 10 consecutive months of sales increases compared with the year earlier, according to the research service MasterCard Advisors SpendingPulse. Where is your slice of this?
If there is one thing we have learned it is, unlike Neiman Marcus or Mercedes Benz, the folks with the money are probably not beating down your door. Our industry has got to go back to a “hunter mentality.” Buying nice, expensive things is back in vogue for people who can afford it. Business owners, you have got to get back out there and sell! You started your business because you had a passion for this industry; you have got to become the driving force again. At CustomRetailer, we are renewing our commitment in the coming year to assist you with business and management techniques and strategies in how to attract and keep that luxury customer. We all have to win.