Luxury Marketers Are No Longer Chasing Customers Too Far Down The Economic Ladder

 It turns out the "New Luxury" audience I blogged about back in April is not entirely as recession-proof as the "Real Luxury" demographic. The "New Luxury" demographic is hunkering down with the rest of the mass market, and is tightening those Gucci belts, and keeping last year's Escalade--or worse yet, trading it in for a Prius.

So, marketers are no longer chasing customers too far down the economic ladder. "We don't want to see huge price cuts that will create a lower-priced brand," said Brad Farrell, skincare brand manager for L'Oréal Paris. "That's because you don't want to tarnish your brand. When this is all said and done, you still have your brand reputation to uphold."

Sellers of luxury goods say they're also giving up on the aspirational teen shopper and new money hubs like Dubai and Moscow.

Instead, they plan to pamper their traditional base: the very rich. "I really think the foundation of luxury is customer service -- that is what we are hearing," said Cori Galpern, worldwide marketing director for Tom Ford International.

What's now "in" for marketing luxury in this difficult era is pampering the wealthiest and most loyal customers with everything from monogrammed shirts to personal in-home visits.

For much more on this demographic marketing shift, go to Knowledge @ Wharton