Incentive - December 2008 - (Page 44) LUXURY BRANDS luxury fundamentals WHAT’S INSIDE YOU KNOW TIMES are tough when even affluent consumers are 46 50 52 56 all-access awards Offer your high achievers the chance to attend the spor ts or entertainment event of a lifetime suffering a crisis of confidence. A ccording to this fall’s Unity Marketing Luxury Consumption Index, 56 percent of the well-heeled are spending less on luxur y now as compared to a year ago; about the same percentage planned on reining in luxury spending in ’09. Incentive’s own Luxury Brands survey discovered belt-tightening, too, on the part of planners, with almost 52 per cent looking for luxury on a smaller scale. With spending in many corporate quar ters being closely examined or cut outright, the idea of per ceived value, cited by several respondents, has come to the fore. Since Incentive began its Luxury Brands survey five years ago, quality of product and service, perceived status and brand recognition have consistently beaten out cost as criteria for making the luxury grade. While planners often speak of the “ wow factor,” going for the most expensiv e, outrageously excessive reward regardless of quality, functionality and demographic fit can be a waste of money and a disappointment to the v ery people who deserve proper kudos for their achievements. It may be back to basics for luxur y buyers across the board, according to the New York City-based Luxury Institute, whose recent trend report calls for a return to “value-added luxury fundamentals” and a turning away from the “pricier the better” mindset affluent consumers seemed hypnotized by in better days. It’s a call already being answered by some incentive planners. Says one respondent to this year’s Luxury Brands survey, “While we are still doing travel incentives, we are carefully scrutinizing the properties and the value they bring.” That’s something to think about no matter what the economic climate. the luxury landscape Trends in luxury incentives from the people who use them going places Inspiring places to visit and ne w looks for favorite group hotels the finer things Merchandise—from the entertaining and stylish to the useful and socially responsible Produced by Incentive Custom Media Department 770 Broadway New York, NY 10003 Editorial: (646) 654-7647 Advertising: (646) 654-7638 Marilyn Moore, Director Karen Gines, Executive Editor Denniston Brown, Creative Director, Cover Design Michelle Tropiano, Assistant Art Director Nancy Lazarus, Research Director Anita Wise, Production Manager 44 INCENTIVE LUXURY BRANDS 2008 | SPECIAL SECTION
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