Archive for September, 2013

The Return of the Conspicuous Consumer

Tuesday, September 17th, 2013

conspicuous consumer

The affluent are shopping again and wearing their wealth on their sleeve.

After going undercover and feigning modesty during the recession, the überwealthy are climbing out of their bunkers and finding that “It’s Okay to Shop Luxury Again.” They are shedding their faux “recessionista” identities and getting back to shopping and dining in public with four-to-five figure bags slung from their shoulders.  In fact, the LA Times reports that the new Celine Boutique on Rodeo drive is selling $3,000 Trapeze bags as if they were $3 lattes!

Where once the rich refrained from flaunting their wealth, Rodeo Drive is now bustling with excitement as luxury stores pour investments into retail infrastructure. Million-dollar showroom renovations by the likes of Dior, Prada and Van Cleef & Arpels are supplanting showrooms gone stale. In place of shuttered spaces that recently stood empty, now beckon shiny, new luxury retailers such as Moncler, Patek Phileppe, and Polmellato. Just as soon as a celebrity plucks an item off the rack, it receives the Rodeo Drive bump that skyrockets sales through all sales channels worldwide.

Further evidence that luxury has its mojo back:

 

In all, sales in “luxury consumption in the U.S. have continued to outperform overall consumer trends,” according HSBC luxury-goods analyst Antoine Belge. But of course not everyone flocks to Rodeo Drive to shop. Many prefer to order luxury goods from the comfort of their Italian sofas. Today’s challenge is placing your brand right underneath their fingertips as they tap their tablets in search of the next must-have luxurious accessory.

Luxury marketers are finding some success through PPC campaigns, retargeting visitors to their websites, and conducting digital display ad campaigns. However, the biggest problem with the digital channel is the waste associated with it. Many websites featuring luxury content attract individuals without the means to buy and much of the clickthrough traffic on PPC campaigns brings unwanted visitors.

We see a gaping hole in the media marketplace of a sizable digital audience of the top 5% wealthiest Americans. To fill this void we are matching the offline based Wealth Window universe to an online audience pool so that digital marketers can reach the wealthy wherever and whenever they go on the web. They can be targeted by numerous attributes and by search terms they use to shop.

Just picture a busy day on Rodeo Drive and multiply the traffic by say, a million and that is what you can reach throughout the year.

 

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