According to an article in MediaPost, “Today’s luxury industries are confronting a convergence of two trends:
- Boomers entering a life stage when traditional materialistic values become less important, and
- A recessionary economy that for many has decimated prospects for retirement.”
So, what does this mean for the luxury home market and how do today’s luxury marketers prevail in this down economy?
MediaPost lists four strategies to aid today’s marketers:
1. Build communities around your products. The legendary Harley Davidson has always commanded higher prices than foreign motorcycles partly because of HOG (Harley Owners Group), a network providing powerful referential reinforcement.
2. Differentiate with values that address emerging Boomer needs to seek higher purpose in lifestyle choices. A watch is more than a watch when acquired as a future heirloom for a grandchild.
3. Make an unassailable quality and durability case. Most Boomers have been burned by shoddy products that seemed like a good deal but broke after purchase. Boomers believe the adage: You get what you pay for.
4. Consider tiered pricing. Just as airlines such as Frontier are unveiling tiered ticket prices in coach class, luxury-class products can be offered to consumers as good, better and best (not cheap, cheaper, cheapest), without compromising brand stature or differentiation.
For more information on marketing to Boomers and the emerging Ruppies population, click here to download K&A’s free Ruppies White Paper.