International Market Segmentation - Assignment Example

Handbags - a long-standing feminine companion, a stamped LV projected for all eyes to see - have given way to shoes. In response to the current crisis, major brands are working out marketing strategies stressing less on "new" and more on loyalty to existent classic offerings. Wall Street Journal Magazine qualifies the current economic crisis as "Fact": Evidence suggests that after a long shopping hiatus last winter and spring, consumers have been tiptoeing back into stores to buy shoes, handbags and sunglasses, selectively [emphasis added]. (Bannon) "Selectively" is, in fact, telling.

Indulgent consumers, losing huge financial assets, are psychologically speaking no longer interested in luxury per se but to keep up an image damaged hard in elite circles. In response, industry giants are adjusting to perceived shifts. Thus, a Prada bootie priced at $800+ during shopping splurge heydays now costs $495. Yet, bags are a standalone symbol for femininity - hence industry's, led by Louis Vuitton's, marketing strategy to enhance the brand image of classic models. Saks Fifth Avenue and Chlo are following suit.

Interestingly, an industry traditionally geared up to high-end, well-off, older consumers are currently turning to 18-to-25-year-olds stamped -by luxury industry - as "bunkie". Coach's Poppy - featuring sequins, jewels, bright colors, logos, and metallics - is a clear example. Notwithstanding Coach's turn to, well, "bunkies" Poppy's features still retain an industry's hold [Insert Your Last Name] 2on luxury values. Thus, in a mix of new market segmentation and pricing strategies, accessories industry eyes unlikely (untapped) markets during business-as-usual days.

Yet, some big brands (e.g. Bottega Veneta) still refuse, at all costs, to compromise on price and stress more on quality and value. Consistently, Italian manufacturers show reluctance to offshore - an indication of still entrenched Italian all-in-the-family business culture. Major retail stores in major markets such as the U.S. have, however, responded more briskly catering to more diverse global consumer segments. Indeed, one great opportunity current economic crisis offers to accessories industry leaders is including broader global market segments formerly inadequately served.

Historically, market segments for the accessories industry have taken as central to global marketing strategy North America, Western Europe, Australia, and Russia. As part of the global marketing strategy, global brands such as mentioned above have enjoyed constant featuring in major fashion weeks in Paris, London, Milan, and New York. Comparatively, little attention has been directed to emerging fashion weeks in the Middle East (e.g. Dubai Fashion Week) and Indian Sub-Continent. In the current global economic situation rethinking global marketing strategies becomes a mandate not only for expansion and growth but even for survival as global tastes.