Wealthy Shoppers Enjoy Brand Partnerships, but Brand Dilution Is a Risk
NEW YORK, NY -- (Marketwired) -- 08/20/13 -- The Luxury Institute
surveyed consumers with a household income of $150,000 or more about
the appeal and impact of brand partnerships. These wealthy consumers
also shared brands that they would be excited to see partner in the
Half of all affluent shoppers surveyed agree that the biggest risk
for a luxury firm partnering with another brand -- luxury or
mainstream -- is damage to the brand's image or reputation. Joint
advertising, products, events and sponsorships are the most effective
types of collaboration.
Among the industries where partnerships are seen as most fruitful are
hotels and resorts, travel, fashion and airlines. Women are far more
likely than men to applaud fashion partnerships, as well as those
involving jewelry and beauty. Men, on the other hand, are most
enthusiastic about partnerships involving automobile companies.
Affluent shoppers older than 50 are exceptionally interested in
airline and cruise collaborations.
Luxury brand collaborations wealthy shoppers would like to see
include Michael Kors and Apple, Chanel and Air France, and Lexus and
The Ritz-Carlton. Missoni offering its fashions at Target and Vera
Wang selling at Kohl's are two high-profile examples of luxury brands
partnering with a non-luxury outfit. Affluent shoppers would like to
see additional partnerships of this ilk, including Starwood Hotels
and Resorts and Bed Bath & Beyond, Gucci and Coca Cola, among others.
"Brands should partner with companies with similar values and service
standards to avoid potential risks of collaboration," says Luxury
Institute CEO Milton Pedraza. "This maintains credibility and helps
to ensure a consistently positive customer experience."
About Luxury Institute (www.LuxuryInstitute.com)
The Luxury Institute is the objective and independent global voice of
the high net-worth consumer. The Institute conducts extensive and
actionable research with wealthy consumers about their behaviors and
attitudes on customer experience best practices. In addition, we work
closely with top-tier luxury brands to successfully transform their
organizational cultures into more profitable customer-centric
enterprises. Our Luxury CRM Culture consulting process leverages our
fact-based research and enables luxury brands to dramatically
Outbehave as well as Outperform their competition. The Luxury
Institute also operates LuxuryBoard.com, a membership-based online
research portal, and the Luxury CRM Association, a membership
organization dedicated to building customer-centric luxury
For Further Information, Please Contact:
The Luxury Institute, LLC
Vice President Business Development
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