Wealthier shoppers are seeking better value for luxury goods.
A survey released by US-based Unity Marketing has shown that wealthy consumers are more likely to shop at discounted stores rather than high-end department stores.
According to the survey, more ultra-affluent shoppers, defined as those with incomes of £150,000 and above, showed they were more likely to shop at mid-range stores such as Debenhams and John Lewis compared to pricier department stores such as Harvey Nichols and Harrods.
The original survey, which focused on American consumers showed they were more likely to shop at Macy’s (34%) and J.C. Penney (22.4%), than Neiman Marcus (20%) or Bloomingdales (19.4%).
Unity Marketing president Pam Danziger said luxury shoppers have embraced a new value orientation, meaning that luxury products and brands must today must “deliver a meaningful return as measured in greater pleasure, comfort, superior performance, and longevity of wear and use.”
“If the product doesn’t measure up, [affluent consumers] won’t spend the money; rather they will trade down to a cheaper, yet acceptable alternative,” she added.
Danziger said high-end stores like Neiman Marcus have to understand that discounters are increasingly becoming their competitors.