The Dollars & Consumer Sense 2009 study, released today, finds that consumers often have a negative reaction when they see the price slashed for their favorite product or service.
In fact, 70 percent of respondents to the Yankelovich poll said such cuts probably mean the brand was overpriced in the first place. And, 62 percent said they assumed that the product was old and they were just trying to get rid of it.
Online spending rose 19% in January, according to the IMRG Capgemini e-Retail Sales Index, with clothing and accessories sales online soaring by 32%.
In the end, that attention to detail may turn out to be what pulls consumer product companies like Shiseido through the downturn.
Hard-up fashionistas are turning to "private sales" websites such as Vente-privee to get their fix of designer clothes and handbags. Sales at the French-owned retailer jumped 46% to £545m last year as millions of shoppers joined the site, which holds "secret" sales events for designer brands keen to shift stock. Customers are invited to join by other members with brands opting to use the site to clear excess stock as they are judged to be more discreet and less damaging to their brand image than outlet stores.
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Plagued by layoffs, closures and plummeting sales, the American department store's fortunes are fading fast.
Designers are mad at Saks, which felt it had no choice but to implement the 70 percent discounts so early last year, as executives watched the Dow plummet hundreds of points, day after day. "I was very upset. Everyone was," CFDA president Diane Von Furstenberg told The Wall Street Journal, adding that those kinds of sales "cannot happen again." And they're going to make sure of it.
Hermes sees flattish sales growth this year and potential margin declines, offering unexpected optimism as the global luxury market is forecast to nosedive in 2009.
The luxury goods conglomerate reports an increase in sales for 2008 and hints that January was okay. The sheen on luxury may have dulled, but industry powerhouse LVMH Moet Hennessy Louis Vuitton continues to shine. Indeed, a strong year in 2008 means less struggle in 2009, quite possibly the most difficult period for the luxury industry.
Instead of operating cash registers and directing prospective customers to dressing rooms, the ETCETERA wardrobe consultant holds trunk shows in the home.
