Most luxury shoppers say they don’t care if a high-end brand branches into the mass market, according to a new survey by the Luxury Institute.
Some 84 percent of wealthy women and 78 percent of wealthy men would continue shopping with a high-end company that branches into the mass market, the survey found.
The survey found that as the lines between luxury and mass market continue to blur, most wealthy customers view quality as the overriding differentiator between luxury and so-called mainstream goods. Price (55 percent) is cited as the second biggest point of differentiation, followed by craftsmanship (48 percent), prestige (47 percent), and design (38 percent).
“Luxury brands can leverage their edge in quality and craftsmanship with current offerings by communicating these attributes clearly with consumers,” said Luxury Institute CEO Milton Pedraza in a statement. “This enhances perceived value and alleviates price sensitivity.”