Growth of Budget Brands and Super Premium

Our future will be a world of paradoxes and to every megatrend you can find another smaller trend which appears to oppose it.  This is certainly the case in retail.  We are seeing migration of middle earning consumers down market away from their favourite aspirational brands towards budget brands because for many households, times are hard right now (late 2011).  But at the very same time we are seeing massive growth in the super-league. Ultra-wealthy people who will settle for nothing but world-class best of the best at whatever price.

Video covers: How sales of budget brands AND super-premium brands are both set to grow. Future of retail industry and trends in sales of luxury goods and services. Economic crisis, austerity, fall in personal disposable income, increase in taxation, rise in unemployment, cuts in government spending. All these economic factors will force more people to buy budget brands. However, expect the wealth gap between the rich and poor to increase in every nation, especially growth in the numbers of super wealthy consumers. These ultra high net worth consumers will drive sales of luxury, premium, rare and exotic items, fast cars, super yachts, private jets, huge properties, exquisite jewelry, privileged access to unique experiences. Impact on marketing strategy and selling techniques. Re-positioning of key brands -- up market and down market, chasing revenues. Patrick Dixon is a trends analyst, Futurist conference keynote speaker on a wide range of global trends including retail industry, consumer insight. Keynote lecture for retail clients of Hermes in the UK.