The Simplifier Economy

Luxury brands used to be considered recession proof. However, we’ve all seen the figures by now, which prove that’s no longer the case. The fallout from a horrific holiday retail season has luxury marketers scrambling to redefine themselves to 2009’s consumers. Last year they had to embrace green bling, this year it’s the simplifiers – the new name to define luxury consumers and their value perceptions – who are simplifying their lives and wants.

Typical Simplifiers:

1. Steer clear of “stuff” as they find themselves surrounded by too many acquisitions. They’ll reject marketers pressure to spend more on possessions and would rather invest in education, health care or social goods.
2. Are embarrassed by their excesses and “stuff”.  They want wealth that doesn’t require conspicuous display. Out with luxury purchases, conspicuous consumption, and the trophy culture. Some consumers are even asking for brown bags to hide the brand names of their luxury purchases.   They will seek to find things that are more affordable, are better quality and serve double duties. A successful radio program recently hosted a celebrity chef talking about halting the need for ever larger kitchens by using kitchen equipment that does double duty and to stop buying gadgets. Design will trump bling.
3. Are starting to conserve, as opposed to consume. It’s becoming uncool to use incandescent light bulbs, drive a gas guzzler, use plastic bags at the grocery, or wear/endorse a brand associated with wastefulness or wanton behavior.
4. Want to collect experiences, not possessions. Market share will be gained by providing value, especially when it is linked to personal and travel experiences. The good news for our industry is that escapism and a wellness lifestyle (previously marketed as “pampering”) are still sought after because it’s not seen as excessive, but a means to achieve personal wellness - to distress and be a better, healthier you in difficult times, as witnessed by the increase in  sport and fitness related activities.

So, marketers and strategists take note: luxury consumers are in the process of an identity shift, where identity is defined by something other than mere brand identification with the luxury goods.

By: Chelsea Orth, KWE group