Paco’s Tips: Understand the New Rich

Consumers are getting older, wiser, and more cynical. At the same time, if you give them a good reason to trade up, they will. After all, low price does not equal value.

Consumers are getting older, wiser, and more cynical. At the same time, if you give them a good reason to trade up, they will. “Most of us have learned that the lowest price isn’t always the best value,” says Paco Underhill. The increasing consolidation of wealth among the top few percentiles is making this trend even stronger.

To be a player in this new market, you need to have on hand a few ‘aspirational’ pieces in each segment stock, says David Brown, president of the Edge Retail Academy. Even for those regular customers who can’t afford a $100,000 diamond bracelet, it’s a thrill to try it on.

Get more actionable advice from the world’s leading retail environment expert at The SMART Show. Paco Underhill’s must-see keynote session takes place on Saturday, April 18, at 8:30 a.m., and is sponsored by Synchrony Financial.