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Trusted Strategies to Sell Premium & Luxury Products
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Chris Ramey: Keynote Speaker l Consultant l Moderator l Business Strategist
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Creating messages that stick
The continued angst in the market has caused the affluent to fall-back on the value system to which they were raised. It doesn't mean they've stopped shopping. It does mean you have to revisit your marketing and selling strategies to be successful.
Regardless of the economy and external issues, you have the responsibility to grow your organization. Given the proper targeting and messaging, there are opportunities for growth.
This Valentini advertisement, from Ferretti's Protagonist magazine, communicates legacy, family and tradition.
What is your brand communicating? How does it elevate you from your competition? Is your merchandising, messaging and marketing consistent with the core values of your targeted consumer? |
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Market volatility, the affluent consumer and free research
It's too early to determine the long-term impact of the recent volatility of the stock market. Clearly, we are a long way from a healthy market. Through July, the market (outside of housing) reflected many positive signs. The Spring 2011 research report from American Affluence Research Center suggested an improved 12-month outlook for personal household income and a strengthening of future spending plans among the affluent.
Given the recent volatility of the stock market, the question is whether affluent consumers will recede from spending money again. Is this a short blip on the radar or the beginning of another downturn? The Fall 2011 research report (available October 14) will provide insight on this important question.
In the meantime, Ron Kurtz, president of American Affluence Research Center and good friend, has offered his spring survey report to readers of The Ramey Retail Report for free - normally $395. For a free copy, CLICK HERE.
The 48 page report (with 39 charts) is a quick read and full of helpful data. Special thanks to Ron for his generous offer. |
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Thoughts on The Consumer Confidence Index
The Conference Board publishes the widely reported "Consumer Confidence Index" every month.
What isn't widely known is that the report can be dissected into a "Present Situation Index" as well as an "Expectations Index." For business owners the former is more relevant because Americans are historically an optimistic lot.
The most recent press release from The Conference Board reads: "The Conference Board Consumer Confidence Index®, which had declined in June, improved slightly in July The Index now stands at 59.5 (1985=100), up from 57.6 in June. The Present Situation Index decreased to 35.7 from 36.6. The Expectations Index rose to 75.4 from 71.6 last month."
The August "Present Situation Index," scheduled to be released on August 30, will reflect a decrease for the fifth consecutive month.
Yet, Americans have acquired half a million luxury cars YTD. Perhaps a poor economy and a collective bad mood aren't always to blame for lackluster sales. |
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Luxury autos sales continue to grow
Mercedes-Benz continues to be the top selling luxury automobile brand in the United States, followed by BMW and Lexus.
The following illustrates the units sold in July and YTD, and year-over-year percent growth:
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July 2011 |
YOY % Change |
2011 Cal YTD |
YOY % Change | | Mercedes-Benz |
20,738 |
14.9% |
138,759 |
11.0% | | BMW |
21,409 |
12.3% |
135,114 |
12.9% | | Lexus |
14,439 |
-18.8% |
NA |
NA | | Audi |
9,146 |
17.0% |
65,055 |
15.6% | | Volvo |
5,595 |
29.5% |
41,898 |
28.8% | | Mini |
4,711 |
8.9% |
34,527 |
36.6% | | Land Rover |
2,811 |
22.6% |
20,103 |
16.5% | | Porsche |
2,768 |
2.4% |
18,310 |
33.8% | | Fiat |
3,038 |
NA |
7,982 |
NA | | Jaguar |
984 |
-35.1% |
7,394 |
0.4% | | Saab |
384 |
-18.3% |
3,820 |
110.4% | | Smart |
327 |
-41.6% |
2,883 |
-26.2% | | Maserati |
199 |
27.6% |
1,296 |
21.3% | | Bentley |
142 |
153.6% |
985 |
32.4% | | Ferrari |
97 |
-31.2% |
957 |
21.6% | | Rolls-Royce |
35 |
-53.3% |
200 |
-25.1% | | Lamborghini |
30 |
-6.3% |
166 |
1.2% | | Maybach |
1 |
-66.7% |
25 |
-30.6% |
Of the top 17 luxury/design brands, 13 of them have increased their unit sales versus 2010. The increase for some, such as Porsche, is due to new products. The decrease in sales for some brands is due to new products introduced in 2010 that no longer have buzz.
Products have a lifespan. Continuous and healthy long-term growth require a strategy to make your products irrelevant. No easy task; particularly for my yacht, jet, car and hospitality clients. But, the affluent demand innovative new products. So companies have a choice: either cannibalize your own products or risk losing market share to competition.
Call us if you'd like guidance on how you can create short and long-term growth; even in an increasingly difficult and stubborn recovery.
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| Unemployment drops to 4.3% in July
That is, if you have a college degree. Conversely, unemployment for those who didn't graduate from high school rose ~5% last month to 15%. Those are the official government statistics.
The United States has become a nation of knowledge workers. The key is that you never stop learning and training regardless of your educational credentials. |
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Chris Ramey is an internationally known keynote speaker, consultant, moderator and business strategist.
As president of Affluent Insights and chairman of The Luxury Marketing Council Florida, Ramey is available for speaking engagements or consulting.
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A few of Chris Ramey's
active clients
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 What's hot next
Pragmatism and ROI are essential to judging new technology. As I like to tell my clients "just because something can be done doesn't mean it should be done." QSR Codes likely fit into this category. On the other hand, augmented reality apps show great promise.
Augmented reality apps for smart phones allow customers to chose a product and then take a picture of it while they sample it. Then the app allows them to email or post the picture.
In this case, I'm wearing a Girard-Perregaux watch. But, it could have been a BMW in my garage or an area rug in my living room. All in about 8 seconds. Eventually the apps will allow customers to buy the product in the same time frame.
Technology for the sake of technology is wasteful. Augmented reality will develop into a valuable tool. |
| You're welcome to download my most recent market analysis. Please CLICK HERE. |
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Chris Ramey is available for consulting projects or
to speak at your next event
Chris Ramey is an engaging, passionate, inventive and dynamic professional speaker who demystifies the luxury and high-end segments. Your attendees will go home with new ideas and concepts to more effectively sell and serve their best clients. Here's what people are saying about Chris Ramey.
Please call us if you're looking for a special speaker to address:
- How to increase your sales to the affluent
- Specific service techniques required by the affluent
- Effective and ineffective messaging to the wealthy
- How mass marketers can sell high-end products
- Best practices for service providers and retailers
- Effective selling to Gen Y and Gen X
As a corporate speaker, Ramey weaves your conference theme throughout his speech to ensure you reach your goals and your attendees have takeaways they won't soon forget. He is also available for think tanks, one-on-ones, workshops, etc. to ensure a successful event.
Our business exists to help you grow your business.
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