The trend • The consumer understanding of what a makes a ‘valuable’ product or service is changing. As the uncertain financial future of the West becomes more apparent consumers desire brands that offer them value for money and values. • The types of values consumers desire are changing. Luxury is not only associated with premium goods but also indulgence filled moments and experiences. • Luxury does not always equate to expensive things that can be owned. Non-tangible assets such as skills, altruism and connectedness will become non-monetary forms of luxury because of the status they confer upon an individual. • Consumers are replacing some forms of indulgence with less costly ones by switching categories and trading down in subtle ways.
evidence • Research suggests that the meaning of luxury is gradually changing. When asked to select the best description of luxury in their lives, ‘Having time to just relax’ increased from 10% in 2004 to 42% in 2011. Whereas ‘driving an expensive car’ decreased from 28% in 2004 to just 17% in 2011 (nVision research, 2011). • 44% of consumers believe it is too expensive to drink in pubs or bars (Mintel, Home Lifestyles UK, Sept 2010) According to the British Beer & Pub Association, 50.9% of beer is currently sold in pubs compared to 49.1% from super markets and off licences. • A 2009 study by Legal and General found Britons are more likely to cut back on holidays, home improvements and eating out before cancelling a TV subscription.
Belfast based firm, Paperjam Design, creates luxurious packaging for new range of artisan chocolates created by Northern Ireland charity Chocolate Memories. Chocolate Memories employs autistic members of the community and introduces trainees to the world of a Chocolatier, as well as developing invaluable skills and experience in business, customer service, manufacturing and administration. .
manifestations ‘Designer’ bakeries are appearing globally.
This prompts us to think about selling a simple product as luxury whilst being good value for money.
Blé, Thessaloniki, Greece
‘05 Rare Tea Bar’ Vancouver, is taking tea making to higher levels. With a contemporary/traditional/high tech décor 05 give consumers a luxury, high quality, good value experience.
…imagine the success of a pop up concept Tea bar to promote your brand. tea
Implications • WOM Word of mouth has become a powerful tool with consumers communicating over blogs, social networking and comparison websites. Consumers are championing, recommending and thrashing brands. Brands need to have stronger ideals and convictions and deliver impeccable service-WOM can make or break a new brand or lead to increased sales and brand loyalty. • Loyalty Contributing towards start ups and independent brands is on the rise. Crowdsourcing.org predicts that the amount of money raised by Crowd Funding Platforms such as Kickstarter during 2012 will reach $2,806b, up 91% since 2011. Established brands like Leon are increasing their store numbers and receiving financial support from die hard brand supporters through the Leon Bond. By taking up a bond you will receive a return in the form of ‘£eon Pounds’ that can be used in Leon restaurants.
• Service +++ • Brand Loyalty
opportunities Brands who do not meet high consumer expectations may fall to stronger competition. Offer and deliver impeccable service and products. Be constantly aware of your brand savvy consumer, and the power of WOM.
FMCGâ€™s could benefit enormously from injecting a luxury flavour into their product or taking it above bricks and mortar-turn it into a concept and experience. Â
Truth Coffee, Cape Town
A possibility of customer brand ownership and customer investment as seen with the Leon Bond. The opportunity to create customer loyalty, not just with discounted offers or spending points. Be innovative and ensure you are enhancing, not cheapening, the consumerâ€™s experience of the brand.
overview Consumers are more brand savvy than ever before due to increase of WOM, social networking and shopping comparison websites. In shaky financial and untrusting times they wish to experience value for money and brands that offer values as well as value for money. They may be trading down in subtle ways but this does not necessarily mean they do not want to experience a sense of luxury. This can be represented in the form of small indulgences, moments, feelings, emotions. Story telling and really bringing products to life would be right on target. Enhancing the experience of brand and product, -be innovative in the ways in which you reward loyal customers, enhancing, not cheapening. Create a die hard brand loyalty that will encourage the consumer to invest in the brand.
Invision Mintel Paperjam.com Chocolate Memories Cool Hunting.com Weheartit.com Crowdsourcing.org leonrestaurants.co.uk/TheLeonBond/LeonBondInvitation.pdf