Learning from the Top Brands

Small businesses can learn plenty from Interbrand's 2008 Best Global Brands report. Today’s important lesson:

Luxury Brands Adjust to the Tides of the Global Economy

In several hundred years, after the human race has drowned in what used to be the polar ice caps, the world will be a giant blue ocean spangled with bobbing Louis Vuitton handbags and glimmering bottles of Chanel perfume: one huge soup of luxury brands. They are the perfect storm survivors. Luxury brands benefit from a consumer-driven psychological buoyancy that allows them to paddle the currents that stir the global economy.

Manfredi Ricca, managing director of Interbrand's Milan office, explains, "In times of economic expansion, luxury brands will see new segments of consumers who can afford access to luxury brands, but they can always count on a stable core of adepts." In this case, "adepts" means wealthy people and their offspring. Paris Hilton. Putin's nephews.

People like nice things. Unfortunately, most of us can't afford the highest in quality, the finest in elegance, and the sleekest in design. The vast majority of the human race cannot afford a Rolex watch. However, as many economies around the world thrived during the past year, increasing numbers of people came within financial reach of luxury brands. On instinct, understandably, many of these nouveau rich rushed into the nearest Cartier store, purchased the gaudiest bling available, and flaunted their new social status to people who don't even know their name.

Yet, as these demographics become accustomed to nice things, something compelling happens. Ricca explains, "In a mature economy, a consumer's self-confidence derives from being discerning rather than merely rich. Subtle details, which add depth to the product experience, are not within reach of the wealthy, but the wealthy cognoscenti." Indeed, being able to afford Iranian caviar, and being able to deconstruct Iranian caviar, represent two different levels of experience with the luxury-brand lifestyle.

Want to discover how to adjust ot the tides of the global economy? Sign up today at www.boostyourbottomline.com/freebie for your free Jumpstart Coaching call.

© 2008 BoostYourBottomLine.com

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