Observations

I went to the Moscow mall to do some research on consumers. My first stop was at Macy's where I asked the sales person to point out some purses that were top sellers and others that didn't sell as well. She quickly pointed out Fossil as being the #1 brand, mentioning that they were the most purchased and least returned. The Fossil bags she pointed out were made of neutral-colored leather and most had two straps. I also learned that many customers loved the Lucky purses, but rarely bought them. My first thought was, "check the price tag." As I suspected the Lucky purses were over $100, while the Fossil bags were $30-$60.

My second finding came from talking a middle-aged woman customer who was shopping for a purse. She was looking for a smaller purse because she complained that the current trend of large bags are a hassle getting in and out of the car. She also prefered having a bag with compartments.

My third discovery was made at Maurices. There was a bag on display that a customer had designed and won the purse competition that the company had sponsored. It was interesting to see what bag had won since obviously the company had done research on what is popular. However, when I asked the sales lady how the customers had responded to the bag, she did not give an enthusiastic response. As shown in the pictures below, the design is quite boxy. This differs from the masses of oversized or pouch like bags that dominate the market. Perhaps the judges of the competition are aware of a growing trend...?

Consumers' Motivations

This table shows what makes a brand or product considered "luxury" in the minds of consumers. If Butler Bag's new line is to continue to be perceived as a luxury line, it is important to that we use this as a standard for upholding the current image. People aren't going to pay high-end prices unless they perceive the bag to have more value than just functionality. They may desire it because of the status symbol, uniqueness, quality, social connections, or emotional satisfaction.

Resource: http://www.amsreview.org/articles/vigneron01-1999.pdf

Demographics Today and the Future

This video talks about the upcoming generation of consumers, primarily in India. It also focuses on the growth in urban living.