Luxury Retail Is Booming Despite the Down Economy

June 19, 2012 by  Filed under: Management 

Many luxury retailers now prefer offering the same high-end merchandise that their customers crave online. What benefit has online marketing had on high-end merchandise sales? According to a recent study, 20 luxury and designer brands advertised online has been extremely profitable for high-end retailers due to its high volume of exposure. People everywhere are connected to the Web, so offering luxury retail through this format engages consumers on a deeper level when they’re presented on social networks and phone apps.

Not everyone is struggling to make it in this economy believe it or not. Shopping for luxury and designer brands is still a big part of the affluent consumer’s lifestyle, and perhaps even more so. Nieman Marcus, Nordstrom, Saks Fifth Avenue, and Tiffany & Co., have all had an upsurge in their profits.

Many may resent the spending habits of the rich when the economy is still showing signs of weakness, the number of the unemployed is still relatively high, and the number of homes in foreclosure continuing to grow at an astounding rate. However, spending money on high-end products helps to stimulate the economy, not only in the United States but overseas as well.

Because Europe is still a huge market for designer and luxury brand products, the health of its economy will greatly affect the American market to an extent. The trend of buying high-end merchandise is also reflected in the Asian world. Up and coming mainland Chinese consumers are the most significant group of buyers. They are exempt from paying taxes on merchandise, which has provided a major impact on high-end retail. This country and many more emerging markets will actually serve to balance any economic fluctuations that may occur in France, Italy or Spain. Consumers from emerging markets are steadily creating a high demand for luxury and designer brands.

Touch of Fabulous, was just recently introduced to the online market as a sophisticated luxury retail store designed to pamper their client’s individual preferences. It’s founder, Pamela Raley, is dedicated to showcasing some of the most exquisite and unique luxury brand items on the market, as well as being on constant alert for hard to find items. Suzy Sandberg, president of PM Digital gave a statement that sums up how much luxury retailers can affect the economy by saying, “Luxury… brands can make headway… ” With that said there’s no prediction of consumers’ demand of luxury items slowing down.

If you want to know more about the best practices of Luxury Retailers read more about it on our website.

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