{"id":12762,"date":"2014-07-09T11:41:40","date_gmt":"2014-07-09T10:41:40","guid":{"rendered":"http:\/\/www.beyondphilosophy.com\/?p=12762"},"modified":"2019-09-12T04:22:59","modified_gmt":"2019-09-12T08:22:59","slug":"discounting-luxury-brand-power-attention-cluster-emotions","status":"publish","type":"post","link":"https:\/\/beyondphilosophy.com\/discounting-luxury-brand-power-attention-cluster-emotions\/","title":{"rendered":"Discounting a Luxury Brand: The Power of the Attention Cluster of Emotions"},"content":{"rendered":"

Two major luxury fashion brands are experimenting with discounting themselves. Alexander McQueen, and Tiffany have all been embracing their more price conscious shopper. The net effect is that the brands are enjoying more profits and customers get a brand they think is cool, but that they never thought they could afford.<\/p>\n

Here\u2019s what we can learn about the power of consumer psychology and the emotional aspect of the customer experience<\/a> from these two luxury brands.<\/p>\n

Luxury Brand #1: \u00a0Alexander McQueen Opens an Outlet Store in California<\/strong><\/p>\n

In April, late designer and fellow Brit Alexander McQueen opened his first outlet store<\/a> in the US at the Desert Hills Premium Outlet Mall near Palm Springs, Ca. Chances are that McQueen, renown bad boy of the fashion world, would have had some choice words for the prospect of selling his haute couture at a discount outlet store, but experts say that the recent state of the economy has definitely taken some of the stigma out of the prospect for major luxury fashion brands. One thing is clear. How people brought things before the \u2018Great Recession\u2019 and how people by things now is different. Many people have become much more price conscious and lowering the prices can even help these brands. Considering the mall takes in $1,300 per square foot, chances are very good that the brand will not suffer much in way of profits. The only challenge will be if their usual clientele now see a diminishing of the brand because of this. Time will tell.<\/p>\n

The Lesson? Matching consumer needs with a company need creates a winning strategy for increased customer loyalty<\/a>.<\/p>\n

Nielsen\u2019s Global Survey of Consumer confidence revealed that in 2014 consumer confidence is building. But it also revealed that saving and reducing debt are hangovers from the last few years\u2019 economic crisis. It is as if consumers are making it a priority to have a financial umbrella for the next financial rainy days.<\/p>\n

Creating a customer experience that appeals to their subconscious needs as well as their conscious want is a great way to increase customer loyalty. What brilliant organizations do is link the customer\u2019s needs with an activity that drives the bottom line for their company. In this case, McQueen\u2019s brand of Haute Couture is more accessible to consumers, and McQueen\u2019s older, unsold inventory finds it\u2019s way out of the retail stores, which can drag down the atmosphere of the store, and into the closets of shoppers.<\/p>\n

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Luxury Brand #2: Tiffany sells tons of fashion jewelry instead of fine jewelry<\/strong><\/p>\n

The quality of the fine jewelry is how Tiffany\u2019s built its brand. The finest quality diamonds and the high-grade platinum gold are impeccable. They also built an experience to match the quality of their jewelry. Their reputation is known all over the world and they created a longing for their brand, best depicted in the movie, Breakfast at Tiffany\u2019s.<\/p>\n

A brand that is famous for selling diamonds is making the most profit selling sterling silver. Tiffany reported a profit surge of 50% to $126 Million in the most recent quarter. How? By keeping the experience the same while selling items with a lot more margin.<\/p>\n