12 August 2011
Austerity may be the new black among shoppers, but New Zealand companies can strike gold by targeting the United States (US) luxury market.
US-based luxury consumer expert Unity Marketing will be in Christchurch on Tuesday, 23 August to give companies an insight into the affluent consumer market in America and how to grow sales at a series of workshops and seminars arranged by New Zealand Trade and Enterprise (NZTE).
Tanya Shuster, NZTE’s Senior Business Development Manager based in Los Angeles, said: “Kiwi companies need to better understand the 22 million households (or top 20 percent) that earn over US$100k because they make up 40 percent of US consumer spending.
“The middle classes were hit hard by the recession and they will be severely limited in their ability to buy goods and services in the near future. The increasing concentration of income – and spending – will be towards the affluent segment of the market. Attracting their disposable income will be vital for brands and retailers in the next decade.
“The problem for New Zealand is that affluent Americans don’t think about the country as a source of luxury goods – it isn’t on their radar other than as a travel destination. They are aware that New Zealand produces wine, lamb and wool, but these and other products must tell the story about New Zealand quality if their products are to appeal to this market.
Pam Danziger, from Unity Marketing, says that luxury is not just about being expensive.
“Affluent consumers are smart shoppers and will not pay 10 times the price for a product that is only three times better. Quality and performance is expected, but it has to bring value. This group also expects an experience that will enrich them or make their busy lives easier.
“Marketing brands as ‘green’ or environmentally conscious will not contribute to your bottom line. This group wants superior quality goods that signify craftsmanship, authenticity, classic design, distinctiveness and style and brands they can trust. Undoubtedly, New Zealand produces goods that fit this bill, but you can’t sell what people are unaware of.”
Pam believes that as well as effective marketing, increased tourism among the luxury travel set will positively benefit New Zealand luxury goods producers. She said: “It will teach people about the country and what is produced. More tourism will mean more trade.”
The morning workshop will focus on successfully cultivating and communicating with the US affluent consumer market and identify the 10 key values a luxury brand must have to compete. It is not specific to any sector or product. Two one-hour seminars in the afternoon will share findings and tips from customer research commissioned by NZTE into Apparel and Gourmet Foods. Companies may want to attend both as different information and recommendations are covered.
To register for the workshops and seminars, companies should contact USAffluentConsumers@nzte.govt.nz
