That sucking sound you hear is purse strings being tightened
Even affluent consumers have been tightening their purse strings. According to a new consumer confidence poll conducted by Unity Marketing, luxury consumer spending was down 19.7% in Q2 2008 compared with the same period the previous year, and down 5.3% from Q1 2008.
As a result, Cartier is embracing the masses using MySpace. The social networking site is the platform for showcasing their Love by Cartier collection, a marketing campaign that will run for one year.
On the other hand, the lack of a presence on social network sites has not hurt Louis Vuitton. In April 2008, the brand ranked first on a list of the top luxury names among consumers worldwide polled by Millward Brown.
A recent Luxury Institute survey found that that two-thirds of wealthy shoppers turn to online retailers for luxury goods, while a little over one-half start with a search engine. Additionally, 84% of these consumers rely on sites with ratings and reviews.
But despite a majority (52%) of luxury firms putting most or all of their products online, only 12% allow customer reviews. An optimistic 40% claim to have an online community in the works, yet 25% have no such plans at all.
Store window at Sax 5th Avenue