The overriding guilt of shopping in a downturn is said to be delaying a recovery in luxury spending but some high-end firms and retailers are working on ways to reduce or at least divert those feelings.
When buying feels good, an article in The Wall Street Journal states, it produces a high similar to the euphoria of eating chocolate. In bad times, consumers hide purchases and shopping bags or avoid stores all together to avoid the temptation and, while shopping, guilt can permeate the experience.
"It's not very strong at the beginning but increases when you swipe your credit card through the credit-card reader," said Martin Lindstrom, a brand strategist and author of Buyology: Truth and Lies About Why We Buy.
Nonetheless,
the article stated a number of ways high-end purveyors are attempting to
diffuse those guilty impulses:
- Unexpected locations: Ittierre SpA, the Italian parent of the Gianfranco Ferre and licensee of labels such as Just Cavalli and John Galliano, is considering opening some temporary pop-up stores in unexpected parts of European and U.S. cities that aren't traditional luxury centers. These pop-up stores are intended to deflect the natural guilt that comes when entering traditional stores. Said Andrea Ciccoli, the administrator for Ittierre, "People are so disciplined, their super-ego tells them not to buy, and then they don't buy."
- Internet shopping: Online shopping skirts the "luxury shame" of walking out a high-end store flashing a big shopping bag. Alexis Maybank, the co-founder of Gilt Groupe, which organizes online, by-invitation-only 36-hour sales of high-end labels, also said online shopping behavior is different than in-store. Instead of browsing for hours, "you take five minutes out at a specific moment of the day to get the things you need," she said.
- Charity connection: Cole Haan recently offered a 15 percent discount on a new pair of shoes when any old pair was donated for charity. Merci, a new, trendy Paris luxury store, donates all profits, after operating costs are paid, to children's charities. Merci also recently opened a temporary one-month shop in New York with the Gap. Such ulterior motives can help with "the argument shoppers have with themselves," said Sue Phillips, the London-based chief executive of consumer-research firm Synovate Censydiam.
- Eco-connection: Some higher-end brands are more heavily marketing their environmental friendliness with consumers already showing a willingness to pay up for green and green brands. Swedish clothing brand Filippa K opened a secondhand store in Stockholm selling used clothes of its own brand for at least half off. Said Anders Wiberg, who oversees the Filippa K boutique, "The customer looks at us as taking more action."
Discussion Questions: In what ways can luxury firms overcome the guilt associated with shopping in a downturn? What do you think of the strategies offered in the article?