Today’s tough economy continues to be a daunting challenge for all consumers . . . including affluent consumers. Luxury consumers are not responding today as they have in the past to the notion of making conspicuous consumption purchases; including jewelry. Even impulse purchasing is being kept in check by many luxury consumers. Consider experiential marketing of jewelry as the means to enhance how affluent shoppers can perceive, interpret and feel better about how jewelry complements their individual approach to fashion and style. What sort of messages might your brand and the brands the store carries say to affluent shoppers?
A recent study reported more consumers who qualify as affluent consumers (average income $220,000) spent more on personal luxuries in 2009 over 2008. A key performance trend is the 20 percent growth in purchasing of men’s jewelry. Is your business seeing a smaller group of high-spending customers? If so, how are you changing your target marketing to capitalize on this trend? How are you approaching this more cautious and very important consumer? What sort of pricing strategies might be employed to better engage affluent consumers? Retail jewelry marketers need to reevaluate each micro-market strategy and clarify how prospective segments might be further solicited to enhance the total number of transactions and bottom line profitability?
High quality fine jewelry should be presented as very personal items offering timelessness, distinctive style and sophisticated design. Quality need only be appreciated by the individual consumer; but knowing how to identify and confirm each consumer’s definition and demands for quality can be very challenging. Luxury jewelry must be related to the individual consumer and is more about perceived value than price or brand. Successful jewelers know how to differentiate their product offerings in display, presentation and demonstration with quality that truly sets it apart from competing substitute pieces. The reality of the recession has influenced consumers to demand great value. Even high income consumers are looking for a great return on investment during these economic times. How do you sell superior value and return on investment to luxury jewelry consumers?