Luxury Marketing Trend 2013: Upgrade Product, Price Point

An interesting article in Luxury Briefing documented a repositioning trend with upmarket brands.In an about face, a luxury marketing trend 2013, major  players are making strategic moves to switch emphasis from entry level and aspirational products to those driving sales of higher end goods and price points. It’s all about raising the quality and exclusivity, as they look to price rather than volume to be the revenue driver.  We’ve  documented in KWE’s trends letters how the anti-brand movement continues to grow, especially in retail, where counterfeit goods have weakened the appeal of logo merchandise.  Both Louis Vuitton and Gucci report particular sales success with their non- monogrammed products, with Gucci’s leathergoods and exotic skin items posting double digit growth last year.  The big names are looking to slow the rate of new store growth, preferring to concentrate on improving profit margins in existing locations and seeing this as an opportunity to prevent excessive inventory which leads to big markdowns. Raising opening price points, they all would agree,  also enhances upmarket positioning which helps with the most robust segment of the affluent market, hyper luxury . In a similar vein, there’s also a push toward more made-to-order and bespoke in everything from leathergoods and watches to jewelry and fragrance, all available at higher price points of course.

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