Indulgence USA

Jul 13, 2004
George Anderson

By George Anderson

Forget about “champagne wishes and caviar dreams.” You no longer have to be among the rich and famous to enjoy luxury items.

In fact, according to a Find/SVP report on the Forbes Web site, consumers from all different economic/social strata are finding ways to enjoy luxury products, whether it be a freshly-ground coffee beverage from a Starbucks inside a Target to the decidedly more extravagant pleasures enjoyed by super-rich.

This “New Luxury” movement as described in the Forbes piece has come about because of “a decline in household size (and thus an increase in family income), a smarter populace, the growing influence of lifestyle magazines, and increased stress at work and at home.”

Moderator’s Comment: What factors do you believe are chiefly responsible for driving the “new luxury” movement? How
do retailers, catering to those with more modest means, leverage the consumer desire for self-reward to drive profits?

The Forbes piece included a reference to a 2002 study by Boston Consulting which showed consumers were willing to pay up to 10-times more for new
luxury items.

George Anderson – Moderator

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