The retail luxury sector continues to see accelerated growth with Neimans, Nordstroms, Bergdorfs,etc. all reporting significant increases over last year and many exceeding targeted expectations. The demand for luxury in all categories is projected to increase well into 2006. This trend carries into the pet industry with a growing demand for interesting designs, fabrications and style. The customer that is buying from key designers such as Dolce & Gabanna, Armani, Chanel, Luis Vuitton, Christian Dior, Ralph Lauren, Versace, YSL and Gucci are all clients that buy because of what the brand represents. Style, design, sophisticated taste level and recognition in the marketplace. This is the customer that represents the true luxury market.
The luxury sector of the pet industry has been targeted as a category with the most growth. True luxury products are beginning to surface in the pet industry due to the trend in the marketplace and the increase in consumer demand. Pet carriers are a prime example. Two years ago, the highest price point on many websites for a pet carrier was $199.00. Now, the category has grown due to demand with price points now from $400 - $900.00+. The requirements of dog carriers today are for style, fashion, Italian Leather, quality hardware and workmanship in the construction of the bag. Carriers are now doubling as a handbag as well as a dog carrier. This has resulted in the need to raise the standards on pet carriers to accommodate the luxury client. Fashion, quality, function have now become synonymous with what a pet carrier must represent.
While carrying a more expensive line in a boutique may appear to be risky, what needs to be assessed is the amount of profits that selling luxury items can bring. If a luxury carrier retails for $900.00 and the wholesale is $450.00, a profit of around $300 - $400 depending on a stores?overhead costs can result from the sale of one bag. At a retail price point of $200.00, that has a wholesale of $100.00, 3-4 bags would need to sell to achieve the same type of profits that a luxury bag will earn. In addition, the following are what a luxury customer can do for your store.
1. The luxury customer is more affluent. Therefore, the client has more disposable income to spend on other items in the Boutique.
2. The profile of a luxury customer is often one that purchases the complete ensemble. This means increased sales on matching collars and leashes for the bags along with clothing for the dog.
3. The customer is continually one that wants to be updated. Therefore, he/she will welcome the phone call when new items arrive. Keeping in mind that the true luxury customer is not concerned with price. When it comes to buying for themselves or for their beloved pets, price is never an issue. It’s always about styling and quality.
4. A boutiques?buying strategy must always be to look for those items that create the "wow" factor. This means that items should never be merchandised in mass quantity but merchandised so that it becomes an absolute "must have" for the customer. The item must make a statement on its own.
5. Merchandise should always be rotated with different styles featured daily. The more movement that takes place in a store will create a newness and freshness thereby driving clients into the store.
Take the time to study the luxury customer. What their lifestyle entails. Two to three homes, travel schedules, professional careers, likes, dislikes, where they currently shop, what they wear, what kind of watch they wear, what kind of shoes and what designers they like the most. All of the above must be translated to each employee in the store so that everyone recognizes what the customer expects. Training will be key.
Believe in the products that are purchased, train the team on understanding the customer and build confidence through product knowledge and training. Doing so will translate to increased sales in the business and increased profits.
Hedy Woodrow is the CEO of Hedy Manon International. Hedy Manon specializes in luxury pet carriers that look like handbags and are fashionable. Prior to starting Hedy Manon, Hedy spent 20 years in the luxury fashion business as a Senior Vice President of Retail for a major luxury brand. Her broad retail experience included sales, marketing, and advertising, working with buyers, visual teams and planners. She has traveled extensively throughout the US and Europe attending high profile celebrity events that have given her exposure to a very high end client. Her insights come from personal experience both as a leader in the fashion industry and as a client. Her website at http://www.hedymanon.com features luxury products that are unique to the pet industry. The company name was changed from Designer Paws International to Hedy Manon International late 2005.