Friday, August 7, 2009

Marketing Luxury Goods in the Post Consumer Era? Is this an Oxymoron?

In a April 07 Blog by David Armato ( L+E ) presented a great graphic portraying the post consumer marketplace from his point of view. I have copied it here without permission but with citation. By David's own blog this an example of "word of mouth advertising" he should be thankful for the positive lift.

lifted from:

If you read my Blog Britney Spears, Facebook, Twitter and the Post Consumer World. Aug 2, 2009 you already know some of my opinions about marketing in the post consumer era.

Marketing won't die, it will just get more cut-throat, insidious and subliminal.

My response to the subliminal: I will try to avoid buying anything I see advertised or "think" I have seen advertised, without a walk around the block before I make the purchase. Exempting breakfast cereals and other non-branded food items. For me, basic food is non-discretionary spending. Others might consider an iPhone more important than food, and who am I to judge?

What will change in the post-consumer world is discretionary spending. We will have less to spend. (Anyone with a 401K plan, a job that earns normal wages, or a home as part of their equity already has less.)

There will always be those who can afford luxuries without thought. (The One Percenters) Most of us, the Ninety-nine Percenters, will have smaller credit lines in the post-consumer era and our luxury purchases will be fewer and hopefully better thought out.

Maybe the post-consumerist will become a more deferred gratification type luxury buyer. Skip the daily $8 coffee and buy the $400 espresso machine from savings only fifty work days later. (no credit card charges).

Many economists, including Alan Greenspan, say that the same conditions of the human spirit will lead us back to the same place we were in 2007. I agree, however it took us 25 years for the stock market to reached its pre-1929 levels. If thlast year was akin to the great crash then we won't be back to our old ways soon, even if the banks change their current tightened lending. See my July 7th posting for information on the consumer lending crunch.

In the post consumer era, luxury goods will command even higher prices due to a shrinking market place and increased costs in marketing and delivering those luxury goods. (Economics 101).

Will luxury markets ever die. NO, they just will become just that "luxury markets". I might find it necessary to have a laptop computer for my work, but will I buy the most expensive one. I used to, but now I think not.

Some of the post-consumer literature contends that a loanership economy might grow, others like the Eden Project think the Big Lunch will increase social activism and community in the post- consumer era.

I will explore these and other "post-consumerism as social change catalyst" ideas in future blogs.

One thing I am sure of: high powered marketing of stuff you don't really need will continue unabated in the post-consumer era.

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