Earlier this month, I blogged about how UK
bargain hunters are buying, buying, buying at 99p Stores, contributing to the retailer's sharply higher turnover and profits.
At the same time, luxury products are thriving in what may be a parallel marketing universe. Burberry has rebounded,
Mulberry's profits are higher (see its collection above), Prada is still popular and LVMH continues to do well. In this universe, segmentation by brand loyalty and brand aspiration is just as important as segmentation by household income.
Much of the upmarket activity is taking place in
Asia, where appetite for top brands has always been strong. China's millionaires aren't only buying luxe products; they're also seeking
upmarket travel experiences (while remaining loyal to well-known brands such as Shangri-La hotels). As
CNN International recently reported, 'kaching, kaching, kaching'! And there's no end in sight as Asia's economies move ahead.
