In this article, N.R. Kleinfield discusses how Piaget watches sell so much even though they are super expensive. He interviewed Gerry Grinberg, creator of the Piaget watches, and asked how they market to buyers. Basically, Grinberg explains how sales have gone up because young people now want to buy these name brands. He claims that their marketing audience used to be 45 years old and up and now it is 45 years old and under. This is not only true for watches, but I believe this type of market is seen nationwide. Selling to those who have a bottomless wallet is the way to up the sales of these name brand items.
Young people love to buy name brands in today’s world. It seems to make them think they look cooler or richer than everyone else. While I wish I could afford a real Gucci belt, I would never actually spend $400 on something that I will only wear a handful of times. The business of high-end fashion targets the affluent market because they are most likely to spend loads of money on small items, like a watch or a belt. In my opinion, it is smart to market to the wealthy; more profit will be made by selling the higher priced items to the rich. It is smart because they will spend the money on it and the item will not need to be marked down or put on sale.
Overall I think that this is the way to go if you are a big fashion business. They should up those sales and target the affluent shoppers. But I do think these name brand items are ridiculously priced; I can go buy a watch at Walmart for $10 and it will tell me the time the same way a Piaget watch will, but for much cheaper. The fashion industry is growing and the high-end spectrum of fashion has a growing customer market. Young people have more money now and love to show it off. therefore these companies need to get their name out there. I think they need to sponsor famous people and sell to the famous in order to spread their brand’s name. This is just a thought, but it is a way to become known. Businesses need to make themselves known.