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- Herausgeber: Business Book Summaries
- Kategorie: Fachliteratur
- Sprache: Englisch
The must-read summary of Michael Silverstein and Neil Fiske's book: "Trading Up: Why Consumers Want New Luxury Goods - And How Companies Create Them".
This complete summary of the ideas from Michael Silverstein and Neil Fiske's book "Trading Up" shows that the tastes and preferences of American middle-market consumers are changing. More and more, they are becoming willing to “trade up” in some areas – to pay a premium price for products and services that provide a greater level of quality than typical mass market offerings. As a result, a new concept is emerging in the marketplace: “New-Luxury”. In their book, the authors explain that new-luxury products break the traditional norms of the past and sell at comparatively high volumes, despite their relatively high prices. This summary is a must-read for both marketers and consumers who want to become smarter in an increasingly sophisticated marketplace.
Added-value of this summary:
• Save time
• Understand key concepts
• Expand your knowledge
To learn more, read "Trading Up" and discover the new-luxury products that will change the way you think about the marketplace.
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Seitenzahl: 35
Veröffentlichungsjahr: 2014
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Book Presentation Trading Up by Michael Silverstein and Neil Fiske
Book Abstract
About the Author
Important Note About This Ebook
Summary of Trading Up (Michael Silverstein and Neil Fiske)
1. The emergence of the new-luxury marketspace
2. The key drivers of the trading up phenomena for consumers
3. The supply side forces that fuel new-luxury goods
4. The eight key management practices of successful new-luxury creators
Book Presentation Trading Up by Michael Silverstein and Neil Fiske
Book Abstract
MAIN IDEA
The tastes and preferences of American middle-market consumers (those earning $50,000 and above annually) are changing and evolving. More and more, they are starting to be willing to “trade up” in some areas – to pay a premium price for products and services that provide a greater level of quality than typical mass market offerings. As a result, a new “sweet spot” is emerging in the marketplace which is called “New-Luxury”. It is estimated around $400 billion in new-luxury goods were sold in the US in 2003 and this level of sales will continue to grow at about 15-percent per year to reach $1 trillion by the end of this decade.
Conventional business wisdom has always stated: “The higher the price, the lower the volume”. Therefore, companies traditionally decided whether they would chase the luxury market with very highly priced offerings or target the mass market with more modest pricing and features to match. New-luxury products make that trade-off obsolete. New-luxury products and services sell at comparatively high volumes, despite their relatively high price levels. And therefore, companies at the forefront of selling new-luxury goods can achieve a high rate of profitability and growth which is beyond the reach of conventional competitors. The new-luxury marketspace also offers vendors an opportunity to escape the impact of commoditization on their core businesses.
Interestingly, trading up is not just a US phenomenon. It is about the same size in Europe, and is growing at a similar rate. It is also now well established in all the major economies of the world, and should reach $2 trillion by the end of this decade. This is very positive news for those business leaders who are astute enough to position their firms advantageously in this market segment.
“Trading up is positive, global, and here to stay.”
– Michael Silverstein and Neil Fiske
About the Author
MICHAEL SILVERSTEIN is senior vice president at the Boston Consulting Group, a management consulting firm. He also heads up BCG’s office of the CEO and leads the firm’s consumer and retail practice. Mr. Silverstein is a coauthor of Breaking Compromises.
NEIL FISKE is CEO of Bath and Body Works. He was formerly a partner at Boston Consulting Group.
The Web site for this book is at www.bcg.com/tradingup.
Important Note About This Ebook
This is a summary and not a critique or a review of the book. It does not offer judgment or opinion on the content of the book. This summary may not be organized chapter-wise but is an overview of the main ideas, viewpoints and arguments from the book as a whole. This means that the organization of this summary is not a representation of the book.
Summary of Trading Up (Michael Silverstein and Neil Fiske)
1. The emergence of the new-luxury marketspace
Trading up spans virtually every category of the economy. It is being driven by fundamental, long-term and strong forces on both the demand side and the supply side. The trading up phenomena is now so well established that three distinct forms of new-luxury goods and services are widely known:
Accessible superpremium – low-ticket items which are priced at a considerable premium to conventional offerings.Old luxury brand extensions – lower priced versions of products traditionally sold to the very rich.Masstige goods – mass prestige goods which command a premium over conventional products but are still priced well below super-premium goods and are therefore affordable.The traditional view was that demand dropped off the higher your product was priced. Therefore, vendors had to make a deliberate choice whether to go after the luxury market or to target the mass market instead:
