Luxury is the Ultimate Safety Net
I’ve written before that given the current economic mess, you’re fortunate to be an interior designer.
If you question that, just imagine being in multiple other professions from hair stylist to doctor to owner of a dress shop or barbecue restaurant. How do you think they’re feeling these days?
Sure, many interior designers will see a dip in 2020 earnings because a number of projects have either been paused, or perhaps even cancelled. Commercial designers will have an even longer “blip.” (I’ve taken to replacing the word “crisis” with “blip.” If just feels better!)
But luxury always comes back strong, and while the best luxury is found in the true “whales,” those clients who spend six- and even seven-figures on projects, even the person of modest means considers improving their home a luxury. According to surveys, they will continue to spend on their homes (and especially on furniture) long after they have cut back on cars, travel, jewelry and other desires.
Since China has been about two months ahead of the US in all things coronavirus, I thought it might be instructive to see how their luxury consumers have been responding.
The answer is that they’re responding by getting their wallets out and in a big way!
Tesla, considered a luxury car brand sold a record number of new cars in March, growing by 450% month over month as the overall car market plummeted. Hermes broke a record with $2.7 million sales the day their store in Guangzhou opened after the Covid-19 pandemic restriction was lifted.
Even luxury cruise bookings for 2021 are up 40% versus 2019 according to the Los Angeles Times.
Further data proves that luxury isn’t overly income-sensitive, nor is it reactive to recessions. Studies show that the luxury sector suffered less than others, and it rebounded faster after the 2008 recession. It will do the same after the coronavirus happily moves along.
And the brands that do best of all? Those that double down on customer service and outreach, even when their customers have temporarily pressed the pause button. They never allow a gap to form between past and future. They don’t take the present off, they work even harder.
For almost 20 years I have preached about always climbing the “luxury ladder,” making sure that your average project grows larger and larger each year. Fewer large clients is far, far better than more small ones.
Right now, right this minute—today!—there are individuals discussing new plans for their primary or secondary homes. They may be more anxious than ever and looking to get started this summer, or in the fall. Maybe even next year but these conversations ARE going on.
But will your name come up? Only if you have cast that net by investing in an ongoing influencer campaign. Whether you use my “How to Catch a Whale” course or fashion something of your own, you simply must take action on this front today…tomorrow…and forever!