In a recent report released by the Luxury Institute from a survey of 500+ high net-worth individuals presented findings that will challenge many in the Superyacht Industry. Important findings show how half of the customers surveyed believe luxury is becoming a commodity and prices are too high.
Audrey Hepburn, Classic Style Icon
“At a time when consumers are cutting back for many reasons, the luxury industry’s two biggest draws for consumers are discounting and sales. Luxury leaders need to quickly get beyond the price and cost-cutting exercises and start innovating again on quality, craftsmanship and, especially, customer service.“
The new research is in line with our belief that Industry leaders must remain highly focused on innovative, quality products and create unique customer experiences. It can be easy to cut costs however what impact will that have on the quality of the product you are building and what will the impact on customer service be?
Another interesting finding was that a sense of flaunting luxury at this time is insensitive and of the desire to help others rather than spend on themselves. I wonder if we’ll return to the days of cultured and discreet wealth that is truly reflective of style and taste whilst remaining understated and elegant – think Audrey Hepburn, Grace Kelly, Prince Charles, JFK Junior, Carolyn Bessette, Martha Stuart and many others.
Some Key Findings:
* Superior quality (82%), superior craftsmanship (78%) and superior customer service (60%) are the top three requirements of a luxury brand. Yet, more than one-third of consumers say luxury brands are worse today than in the recent past on delivering superior customer service and on failing to have salespeople who are experts in their products
* 64% of wealthy consumers believe luxury goods prices are too high relative to the value they deliver.
* 62% of wealthy consumers say that the current state of the economy has changed their view of the luxury industry. Key reasons include: more budget conscious, luxury goods are too “mass” vs. price, a sense that flaunting luxury at this time is insensitive, and a desire to help others rather than spend on themselves
So how can your organization *ensure* superior quality, craftsmanship, customer service and value? Talk with the team at Urban Voyage and see how smart technology solutions are helping our partners deliver exceptional results in challenging times.
We share the view that Peter has that people simply don’t trust companies anymore. 
