Trading Up (Review and Analysis of Silverstein and Fiske's Book)

By BusinessNews Publishing

The must-read summary of Michael Silverstein and Neil Fiske's book: "Trading Up: Why Consumers Want New Luxury Goods - And How Companies Create Them".

This complete summary of the ideas from Michael Silverstein and Neil Fiske's book "Trading Up" shows that the tastes and preferences of American middle-market consumers are changing. More and more, they are becoming willing to “trade up” in some areas – to pay a premium price for products and services that provide a greater level of quality than typical mass market offerings. As a result, a new concept is emerging in the marketplace: “New-Luxury”. In their book, the authors explain that new-luxury products break the traditional norms of the past and sell at comparatively high volumes, despite their relatively high prices. This summary is a must-read for both marketers and consumers who want to become smarter in an increasingly sophisticated marketplace.

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To learn more, read "Trading Up" and discover the new-luxury products that will change the way you think about the marketplace.

• Language: English
• Publisher: Business Book Summaries
• Release date: Oct 28, 2014
• ISBN: 9782511020418

Book preview

Book Presentation Trading Up by Michael Silverstein and Neil Fiske

Book Abstract

About the Author

Important Note About This Ebook

Summary of Trading Up (Michael Silverstein and Neil Fiske)

1. The emergence of the new-luxury marketspace

2. The key drivers of the trading up phenomena for consumers

3. The supply side forces that fuel new-luxury goods

4. The eight key management practices of successful new-luxury creators

Book Abstract

MAIN IDEA

The tastes and preferences of American middle-market consumers (those earning $50,000 and above annually) are changing and evolving. More and more, they are starting to be willing to trade up in some areas – to pay a premium price for products and services that provide a greater level of quality than typical mass market offerings. As a result, a new sweet spot is emerging in the marketplace which is called New-Luxury. It is estimated around $400 billion in new-luxury goods were sold in the US in 2003 and this level of sales will continue to grow at about 15-percent per year to reach $1 trillion by the end of this decade.

Conventional business wisdom has always stated: The higher the price, the lower the volume. Therefore, companies traditionally decided whether they would chase the luxury market with very highly priced offerings or target the mass market with more modest pricing and features to match. New-luxury products make that trade-off obsolete. New-luxury products and services sell at comparatively high volumes, despite their relatively high price levels. And therefore, companies at the forefront of selling new-luxury goods can achieve a high rate of profitability and growth which is beyond the reach of conventional competitors. The new-luxury marketspace also offers vendors an opportunity to escape the impact of commoditization on their core businesses.

Interestingly, trading up is not just a US phenomenon. It is about