The prosperity boom of the nineties, along with the maturation of one of the largest and most sophisticated class of consumers - the Baby Boomers - has initiated a radical shift in the way we shop. Coupled with the rise of e-commerce and the thriving economy, this phenomenon has spilled over into the new 21st Century. Specifically, an affluent and influential segment of consumers has developed a hunger for a unique, personalized shoppping experience — an experience signified by a taste for luxury, sensuality, and uniqueness which combined, makes them feel as if they are buying something specially created for them in an extraordinary and refined environment. This is what WWDLuxe refers to as the "New Luxury."
"New Luxury is pared-down, technology-friendly, impatient, functional and not afraid of a little self-promotion."
(Think Prada, Lexus, the latest cell phone.)
"New Luxury celebrates America's greatest achievement of the past 50 years...ascendency to the global hegemony — in both economic and cultural terms."
It's "...exciting...more democratic."
However, both the Old and New Luxury require more than just a technologically advanced, high-quality, ultra-expensive product&@8212;the total combined elements of the actual shopping experience are also absolutely crucial to building desire in the consumer for the product and for the return experience. Therefore, the physical environment, including architecture and interior design of the shop, packaging of the product itself, and the character of the shop's service providers is essential to creating the total brand experience.
As noted in Paco Underhill's 1999 book, Why We Buy: The Science of Shopping,
...This is a battlefield where the small, locally owned store can compete with the national chains. Given a choice, people will shop where they feel wanted, and generally they'll even pay a little more for the privilege. Even the smallest stores can build customer loyalty by making their customers feel special."What Underhill is referring to is the boutique experience, one that is created to respond to a specialized, but vital and significant niche market. Thus, the Olivia brand has been designed to fulfill an extraordinary marketing pooprtunity and to service a viable, sophisticated, affluent, self-confident and eager consumer audience: the New Southern Woman.