Trading up for “new luxury” and the strategy of sustainability
Posted on 31 January, 2014 by CDPX
The trading up phenomenon has grown tremendously in the last several years because it is based on consumers’ emotions: their dreams and yearnings are realized when they buy the products that turn them into the person they long to be. So consumers identify with what is known as “new luxury” and feel emotionally attached to the brands that provide them with it. This goes hand in hand with the newly emerging middle classes and the democratization of luxury.
Companies can use the trading up concept as a strategy to convince customers that using their products will make them a better person who is helping us live in a better world. The sensation of buying a high quality luxury product and benefitting the world at the same time is very important to many consumers and they are willing to pay for it.
Thus the strategy of trading up can be used as a way to differentiate a company and heighten a brand profile, which can result in greater customer loyalty.
Other trends seen recently are “sustainability strategies,” such as “green products,” that have contributed to increasing companies’ income and market share. With this strategy, companies raise their ethical standards and create an ecosystem of sustainability around their brands.