Luxury brands' primary goal should be to deliver happiness to customers. However, research shows that experiences provide greater happiness than material purchases. A survey by Unity Marketing found that experiences like travel and dining provide more enjoyment for luxury customers than traditional luxury goods like jewelry and fashion. To increase customer happiness and purchases, luxury brands should focus on telling new stories that inspire customers and enhance the shopping experience through excellent customer service and personal interactions. High-tech solutions alone cannot replace high-touch human service, which is especially important in luxury retail.

1. LUXURY
The Business of Happiness
By Pam Danziger, Unity Marketing

2. Luxury Brand’s
Primary Goal:
Deliver
Happiness
Why do people buy luxury?
Not because of left-brain traits like
quality, value or enhanced features
offered.
They buy luxury for the sheer,
unadulterated pleasure and joy
received in the anticipation of the
purchase, the buying, and the
using experience.
And if we are really lucky,
customers also get happiness in
the memory of each of those.
© UNITY MARKETING, 2016 2

3. Happiness
Research
Finds…
All the academic research on happiness
confirms this fact:
Greater joy and happiness comes from
the things we do (i.e. experiences), not
the things we buy and acquire (i.e. luxury
goods).
It is the customer’s happiness experience
that luxury marketers must focus on.
© UNITY MARKETING, 2016 3

4. Unity
Marketing’s
Luxury
Consumer
Research
Confirms…
A recent Unity Marketing survey on
luxury consumer psychology
makes this real. In a question of
what categories of luxury
purchases give the customer ‘much
enjoyment,’ as opposed to some or
little or no enjoyment, experiences
– travel, dining, entertainment –
get the highest ratings.
173
145
125
122 120
113 110
106 106
93
88 88 87 87 86
80
76 74
71
50
0
20
40
60
80
100
120
140
160
180
200
Index where 100=average
Source: Unity Marketing Affluent Consumer Tracking Study
n=1,200 Affluent Consumers (avg. HHI $271.7k)
Luxury Purchases that Give Much Enjoyment
© UNITY MARKETING, 2016 4

5. Some material purchases deliver more happiness…
 Gourmet food
 A luxury thing that delivers an experience through taste and sharing it with others
 Gifts
 A purchase made to be given to others as a token of love and affection
 Books, videos, music
 Things that entertain and engage
173
145
125 122 120 113 110 106 106
93 88 88 87 87 86 80 76 74 71
50
0
20
40
60
80
100
120
140
160
180
200
Index where 100=average
Source: Unity Marketing Affluent Consumer Tracking Study
n=1,200 Affluent Consumers (avg. HHI $271.7k)
Luxury Purchases that Give Much Enjoyment
© UNITY MARKETING, 2016 5

6. Traditional luxury goods purchases are happiness challenged
 Jewelry – Index 87, 13% less than average
 Fashion – Index 88, 12% less than average
 Luxury Goods – Index 71, 29% less than average
173
145
125 122 120 113 110 106 106
93 88 88 87 87 86 80 76 74 71
50
0
20
40
60
80
100
120
140
160
180
200
Index where 100=average
Source: Unity Marketing Affluent Consumer Tracking Study
n=1,200 Affluent Consumers (avg. HHI $271.7k)
Luxury Purchases that Give Much Enjoyment
© UNITY MARKETING, 2016 6

7. How Luxury Brands Can Deliver
More Happiness
Different People/
Different
Happiness
Tell New Stories of
Luxury
Shopping
Experience
© UNITY MARKETING, 2016 7

8. Different People/
Different Happiness
© UNITY MARKETING, 2016 8

9. Different Types of People Get More or Less
Happiness from Different Purchases
 For example, affluent men gain more
enjoyment from spirit and liquor and
technology purchases and less from
entertainment events.
 Affluent women get more enjoyment from
fashion purchases, though they still index
close to average.
 HENRYs (high-earners-not-rich-yet; HHI
$100k-$249.9k) get less enjoyment overall
from luxury goods purchases than do ultra-
affluents ($250k+), with jewelry purchases
being especially pleasant for ultra-affluents.
 This suggest that jewelry marketers that aim to
attract the younger HENRYs to their brand need to
position around ways to make their shopping,
wearing and gifting experiences more pleasurable
to young HENRYs.
 See next page for demographic analysis of
enjoyment index where 100 = average. The
greater the index value is above 100, the
greater the personal enjoyment; the lower the
value under 100, the less personal
enjoyment…
© UNITY MARKETING, 2016 9

10. Luxury Consumers
Much Enjoyment
Purchasing Index
TOTAL
Index
(n=1,200)
Male
(n-480)
Female
(n=720)
AGE
24- 34
(n=195)
35- 44
(n=330)
45- 54
(n=342)
55- 70
(n=330)
24- 44
(n=525)
45- 70
(n=672)
INCOME
$100K-
$249K
(n=800)
$250K+
(n=400)
ETHNICITY
Caucasian
(n=1,015)
Other
(n=217)
WEALTH
Less
Than
1$Mill
(n=668)
$1Mill
More
(n=394)
AGE &
INCOME
44Yrs And
Younger/
$250K+
(n=217)
44Yrs And
Younger/
$100-$249K
(n=308)
45Yrs
And
Older/
$250K
(n=183)
45Yrs And
Older/
$100-$249K
(n=489)
Travel and hotels 173 154 186 165 176 171 178 172 174 175 169 176 169 171 176 162 179 178 173
Fine dining 145 139 149 139 135 156 148 137 152 142 152 146 150 143 155 132 140 175 144
Entertainment, theatre,
music, etc. 125 92 146 109 106 137 141 107 139 127 120 128 112 120 129 99 113 145 137
Gourmet food 122 110 129 146 108 136 105 122 121 119 127 123 125 115 138 124 121 130 117
Gifts and things for others 120 105 129 118 104 123 133 109 128 118 123 124 99 114 133 102 114 146 122
Luxury experiences 113 93 126 140 103 121 97 117 109 96 145 112 116 96 140 146 98 145 95
Books, music,
videos/DVDs 110 96 119 105 105 114 113 105 114 105 120 112 105 104 127 116 98 124 110
Cultural events,
museums, art festivals,
etc. 106 95 113 106 99 102 117 102 109 103 112 107 107 96 130 114 93 109 109
Beauty & salon services,
massages, hair care,
mani-pedi 106 55 133 117 110 106 93 113 100 100 116 107 102 102 103 128 102 101 99
Fine wine 93 92 94 109 94 96 79 100 88 90 100 95 94 84 112 121 83 72 94
Home decor and home
furnishings 88 77 96 100 86 88 85 91 87 80 106 91 78 80 111 109 79 102 81
Fashion and clothing 88 64 103 100 95 90 72 97 81 80 104 88 91 82 105 105 91 104 73
Spirits & liquors 87 108 72 90 90 94 75 90 85 77 108 88 91 83 99 112 74 103 78
Jewelry 87 74 95 80 97 81 88 91 84 73 114 83 107 69 125 114 74 113 73
Technology tools and
gadgets 86 112 69 94 107 72 74 102 73 84 90 84 101 78 101 108 98 69 75
Beauty and cosmetics 80 43 99 107 77 78 68 88 73 76 87 81 79 73 94 89 88 86 68
Craft beer 76 96 59 85 74 84 63 78 74 78 73 80 64 69 93 76 79 67 77
Hobbies and crafts 74 71 77 68 72 68 87 71 77 75 72 75 77 73 82 69 72 75 78
Luxury goods 71 62 77 87 71 69 64 77 67 59 96 70 76 64 87 98 62 92 57
Sporting goods and
equipment 50 64 40 57 45 57 41 50 50 48 56 52 53 45 67 49 51 65 44
© UNITY MARKETING, 2016 10

11. Tell New Stories of Luxury
© UNITY MARKETING, 2016 11

12. Brand StoryTellingTransforms Products into
Experiences
 Bernadette Jiwa, author and consultant, has
made developing compelling brand stories
her business:
 “Creating a brand story is not simply about
standing out and getting noticed. It’s about
building something that people care about and
want to buy into. It’s about thinking beyond
the utility and functionality of products and
services and striving for the creation of loyalty
and meaningful bonds with your customers.”
 Those ‘meaningful bonds’ are formed by
stimulating pleasurable emotions and
feelings of happiness that the brand
promises to the customer.
© UNITY MARKETING, 2016 12

13. Old Luxury
Stories of
Aspiration Don’t
Sell Anymore
Traditionally luxury brands have been
telling aspirational stories about how
ownership of the brand confers special
status to the individual.
At is core, this is a story of elitism
disguised by claims of exclusivity,
design excellence and workmanship. It
is supposed to create desire and
aspiration in consumers to buy luxury
brands to confirm one’s status and to
show off to others.
But today’s affluent consumers aren’t
buying into that old story of luxury
anymore, most especially the younger
consumers.
© UNITY MARKETING, 2016 13

14. Luxury
Consumers
Need
Inspiration, Not
Aspiration
Affluents, most especially the young
HENRYs that are the future luxury
customers, need to be inspired to buy
luxury brands. The inspiration must
come from new luxury stories that
connect with the values and ideals of
today’s affluents.
This challenges many mainline,
traditional luxury brands, but creates
opportunities for emerging brands
that interpret luxury in a new, value-
based way.
© UNITY MARKETING, 2016 14

15. Tell Story of
Luxury in a
Brand New
Style
Unity Marketing has just published
a new report that outlines 17 new
stories of luxury that connect with
young HENRYs -- the future
customers for traditional luxury
brands and current customers of
disruptive brands like Warby
Parker, Everlane, Fitbit,Shinola
and many others.
The report profiles emerging
luxury brands that position their
luxury in a new style for the next
generation of luxury customers.
© UNITY MARKETING, 2016 15

16. Make Shopping Fun
© UNITY MARKETING, 2016 16

17. Research
Suggests Bad
Service
Enhances
Aspiration for
Luxury Brands
A recent article in the Journal of
Consumer Research featured a
provocative title, “Should the Devil Sell
Prada? Retail rejection increases aspiring
consumers’ desire for the brand” with an
even more provocative conclusion: in
luxury retailing environments, treating
some customers with indifference, even
disdain, may increase their desire to buy.
The key words are “some” and “may.”
But don’t just read the headlines, skip
the details, and decide that haughty and
indifferent sales clerks are the answer to
the current stagnant retail climate.
WRONG!
© UNITY MARKETING, 2016 17

18. Luxury
Customers
Expect
Exemplary
Service
The real customers of luxury
brands won’t stand for anything
less than exemplary, caring service.
The truly affluent customers don’t
have aspirational yearning for
luxury brands.
They believe they are entitled to
getting what they want, when they
want it. That starts with an
exemplary shopping experience,
online and most especially in-store
with a personal touch between a
caring service provider and the
customer.
© UNITY MARKETING, 2016 18

19. High-Tech Retail Can Never Replace High-Touch
Customer Service
 Too many luxury brands today are focused on
technological solutions to enhance the
customer experience
 Rather they need to be training and
developing the personal touch delivered by
sales professionals on the floor.
© UNITY MARKETING, 2016 19

20. Future of Luxury
Retail Is
Personal
Grégory Pouy, from his position as a
thought leader in technology-enhanced
marketing, makes it clear that the in-
store shopping experience is critical for
luxury brands and that experience must
be delivered first and foremost person-
to-person:
“Retail is not going to change much. You
can write and over-think it, but you still
need happy customers and salespeople.
However, automation and rebotization
will clearly make many new things
possible in store. But when it comes to
luxury brands, more so than anywhere
else, human contact will make the
difference.”
© UNITY MARKETING, 2016 20

21. Our Job:
Make
Customers
Happy
 Understand what makes your customers
happy
 Tell brand stories in new ways that
connects with the mindset and
psychology of affluent customers
 Focus on customer service to enhance the
shopping experience
Luxury brands need to focus on the
overall goal: Sell more goods by
transforming the things they sell
into experiences for the customer.
© UNITY MARKETING, 2016 21

22. Next Steps
 The key: Understand what makes your customers and
target customers happy and develop strategies to
deliver that to them
 Delve deeply through research and analysis into their
demographics, purchase behavior and psychology and
mindset
 Understand where your luxury brand fits into their
luxury lifestyle
Conduct consumer research to
understand the happiness quotient
of your brand’s customers and
target customers.
Unity Marketing can help. Call us
at 717-336-1600 or visit
www.unitymarketingonline.com
© UNITY MARKETING, 2016 22

23. Today’s consumer marketers face an increasingly competitive
environment with many business and marketing challenges.
Unity Marketing leads with research to help businesses gain
insights into their core customers and their best target customers
– the affluent who have discretionary income to spend.
© Unity Marketing, 2016
23

24.  Affluent Consumer Tracking Study
 Two waves
 Spring Shopper Track
 Fall Product & Services Track
 Consumer Gifting Study
 In-depth investigation into gift choices and shopping
behavior among middle-income to upper-income
consumers.
 Special investigation into how consumers use the internet
for their gift research, planning and buying needs.
 Survey completed April 2015 (n=1,649 consumers HHI
$97,900)
 Art, Framing & Wall Décor Study
 The ‘selfie’ culture has created a new market for frames
and wall décor. In addition, affluent consumers are
collecting more original, one-of-a-kind artwork to display
on their walls.
 An in-depth study is planned in 2016 to investigate the
new art, framing and wall décor market, with a special
section devoted to how consumers use the internet in
their pursuit of new art and frames to display.
 Millennials on the Road to Affluence
 This new study has important implications for every
brand that wants to connect with the next generation of
luxury consumers: the Millennials
To deliver more actionable
insights to marketers about
the best potential
customers in the U.S.
consumer market today –
the affluent top 20%.
© Unity Marketing, 2016 24

25.  Qualitative expertise
 Focus groups, IDIs
 Expert, influential & channel partner studies
 Quantitative expertise
 Survey design
 Data analysis including statistical data analysis
 Analyzing survey results for key take aways
 Marketing & branding consulting
 How to use research to create more powerful brands
and more compelling marketing
 Speaking experience
 Presentations that deliver the most important
information and insights that the audience can take
away and put into action
We are a boutique
marketing research and
consulting firm.
We lead with research to
advise businesses that need
insights into mind of
affluent consumer with
incomes $100k and above.
© Unity Marketing, 2016 25

26.  Greater access to new AFFLUENT
consumer SAMPLES
 In-depth data about HIGH-END & LUXURY
customers
 Understanding of BRAND USAGE &
AWARENESS
 Key COMPETITOR BRAND usage &
awareness
 Purchase & usage TRACKING STUDIES
 CUSTOMER SURVEYS and studies to
identify new opportunities
Unity Marketing can
provide more data about
the affluent consumers,
combining both qualitative
and quantitative research
strategies.
© Unity Marketing, 2016 26

27.  UNDERSTAND your best prospective CUSTOMERS’ needs
and desires
 Get the COMPETITIVE EDGE
 Develop more effective MARKETING STRATEGIES
 RESEARCH your market
 SHARE customer KNOWLEGDE & INSIGHTS
 Evaluate NEW PRODUCTS
 Find best CHANNELS OF DISTRIBUTION
 Track TRENDS in the market
Unity Marketing can help you
use the research data you
have on hand to greater effect
to drive growth for your
business.
We consult with companies of
all sizes,from small to mid-
sized to large multi-nationals.
We support retailers,
manufacturers and marketers
in both B2C and B2B
marketing strategies.
© Unity Marketing, 2016 27

28.  Presentations CUSTOMIZED to specific needs of your
group
 PREPARE your marketing and sales teams for the
competitive landscape of tomorrow
 Gain “All Access” into the mind of today’s most
influential shoppers – the AMERICAN AFFLUENT
 Turn research-based INSIGHTS into ACTIONABLE
STRATEGIES for reaching your most profitable
customers
For over a decade Pam
Danziger has studied the
changing preferences,
shopping habits, attitudes, and
lifestyles of affluent consumers.
Her presentations, speeches,
seminars, webinars &
workshops are customized to
the needs of each audience.
Each presentation is designed
to give the audience news they
can use to understand the mind
of today’s most influential
shoppers – the American
Affluent.
The goal is to deliver research-
based insights that can be
turned into actionable
marketing strategies for each
member of the audience to
reach their most profitable
customers.
© Unity Marketing, 2016 28

29. Unity's research-based
approach can help
marketers and retailers find
new opportunities for
growth in their businesses.
Email Pam188@ptd.net or
call 717.336.1600 to discuss
your marketing challenges.
© Unity Marketing, 2016
Pam Danziger and the Unity Marketing team offer a range of
tools and resources to help marketers and retailers identify
their best customers and channel partners and how to reach
them most effectively with targeted marketing strategies
and tactics.
29

30.  Speaker, author, and market researcher Pamela N.
Danziger is internationally recognized for her
expertise on the world's most influential
consumers: the American Affluent. Her new mini-
book, What Do HENRY's Want?, explores the
changing face of America's
consumer marketplace.
 As founder of Unity Marketing in 1992, Pam leads
with research to provide brands with actionable
insights into the minds of their most profitable
customers.
 Leadership in luxury marketing recognized
through Global Luxury Award presented by
Harper’s Bazaar, London May 2007.
 She was named to Luxury Daily's Luxury Women to
Watch in 2013. She is a member of Jim
Blasingame: The Small Business Advocate’s Brain
Trust and a contributing columnist to The Robin
Report.
 Currently Pam is working on a new book : Meet
the HENRYs: Millennials on the Road to Affluence
 Her most recent books are What Do HENRYs Want?
and Shops that POP! 7 Steps to Extraordinary Retail
Success.
 Previous books, Putting the Luxe Back in Luxury:
How New Consumer Values Are Redefining the Way
We Market Luxury; Shopping: Why We Love It, Let
Them Eat Cake: Marketing Luxury to the Masses as
well as the Classes & Why People Buy Things They
Don’t Need
© Unity Marketing, 2016
30

31. © Unity Marketing, 2016 31