14 December 2008
Luxury Sales Fall 22%
17/12/08 09:51 Filed in: In the News
It hit me on the head like an acorn with a sky-is-falling knock-out punch. Ouch. LUXURY sales falling -- down by 22%? It was almost beyond comprehension. Except that, like many of you, I had seen it coming, so it didn’t hurt quite so much.
For years, pundits in the gourmet industry have told us that luxury gourmet foods were recession proof. That might have been true in years past, but “luxury gourmet” is now on the shelves in supermarkets, purchased by everyday people like you and me -- who are not, unfortunately, recession-proof buyers. So-called ‘peasant sales’ pushed luxury gourmet to unheard of highs. Now, those of us who are not among the recession-proof elite, are moving back to familiar less expensive brands. Thus, the 22% fall of luxury brands.
That’s the problem with bringing “luxury” lines and merchandise to the common market of consumers. The downside to ballooning sales is the big pop at the end. Goodbye Perugina . . . hello Hershey bar.
For years, pundits in the gourmet industry have told us that luxury gourmet foods were recession proof. That might have been true in years past, but “luxury gourmet” is now on the shelves in supermarkets, purchased by everyday people like you and me -- who are not, unfortunately, recession-proof buyers. So-called ‘peasant sales’ pushed luxury gourmet to unheard of highs. Now, those of us who are not among the recession-proof elite, are moving back to familiar less expensive brands. Thus, the 22% fall of luxury brands.
That’s the problem with bringing “luxury” lines and merchandise to the common market of consumers. The downside to ballooning sales is the big pop at the end. Goodbye Perugina . . . hello Hershey bar.
Don't Ax the Marketing Budget!
17/12/08 09:23 Filed in: In the News
In the minds of the retail buyer, Christmas is already over and the focus turns to 2009 production. Some retailers are considering preliminary budget cuts, expecting sales to chill a bit next year. But WHERE to cut is the biggest question. Quite naturally, advertising and marketing are on the front line for cuts.
But be careful with that ax, warns veteran business people. In a era when larger companies will most definitely cut back expenses in marketing and advertising, this is precisely when small businesses can come forward aggressively, spend a little and gain massive shares of the market through more visible advertising.
According to a survey by Epion CMO (published in DMN News) 94% of executives believe marketing is MOST vital in a troubled economy. However, 79% say the believe marketing is the first place companies cut budgets in tight financial times. This is good news for a small business owner prepared and liquid enough to make bold marketing moves next year. Here are the top reasons to consider MORE marketing in 2009:
1. Media deals and discounts will be available.
2. It will take fewer dollars to stand out in a less crowded media market.
3. Large competitors will pull back new and on-the-edge products. A small business willing to take risks on new inventory can shine like never before.
4. Consumers weary of “safe” merchandise will be seeking something new, shopping in places they’ve never gone before to find relief from the boredom of “same-safe” big box retailers.
5. Companies stepping forward in troubled times make news, and that can mean more and better free publicity.
But be careful with that ax, warns veteran business people. In a era when larger companies will most definitely cut back expenses in marketing and advertising, this is precisely when small businesses can come forward aggressively, spend a little and gain massive shares of the market through more visible advertising.
According to a survey by Epion CMO (published in DMN News) 94% of executives believe marketing is MOST vital in a troubled economy. However, 79% say the believe marketing is the first place companies cut budgets in tight financial times. This is good news for a small business owner prepared and liquid enough to make bold marketing moves next year. Here are the top reasons to consider MORE marketing in 2009:
1. Media deals and discounts will be available.
2. It will take fewer dollars to stand out in a less crowded media market.
3. Large competitors will pull back new and on-the-edge products. A small business willing to take risks on new inventory can shine like never before.
4. Consumers weary of “safe” merchandise will be seeking something new, shopping in places they’ve never gone before to find relief from the boredom of “same-safe” big box retailers.
5. Companies stepping forward in troubled times make news, and that can mean more and better free publicity.