Baby boomers are no longer luxury retailing’s future

After the economic gloom, wealthy consumers are spending their money again on luxury goods. However, luxury retailers will have to change the way they sell their products, which is one of the consequences of this economic downturn.

The luxury industry’s usual customers, the so-called baby boomers, have lost a lot of money with their investments. As a result, the luxury retailers should now focus on a new generation of consumers.

Nevertheless, the luxury market could have some problems dealing with the characteristics of their new customers. For example, they marry at old age, and since married people are in general wealthier, they have consequently less money to spend on luxury goods. Furthermore, this new generation does not value status symbols as the baby boomers did. The luxury retailers should therefore adjust the value message of their goods.

We conclude saying the luxury retailers have to reconsider their focus on the market, due to the economic crisis, but consequently being forced to overcome some obstacles.

Nicholas Vijverman

http://www.dailyfinance.com/story/baby-boomers-no-longer-luxury-retail-future/19705000/