Fashion Book Review: Trading Up, by Michal J. Silverstein and Neil Fiske

My opinion:   When it was first published in 1993, Trading Up was seen as a ground-breaking marketing book. The authors set off to explain how middle-class Americans and savvy entrepreneurs were creating a category called "New Luxury".

I think that the authors reflect very well on how some middle-class consumers choose to save money on some product categories, while splurging on others that are more important to them. In the authors' words, consumers trade down on some items, while trading up in product categories that bring them emotional rewards.

I liked the use of data and case studies to explain how this phenomenon came into place. It’s interesting to note that once an entrepreneur offers consumers the possibility to trade up, the product category polarizes: low-cost versions of the product emerge, while premium versions strive. Traditional suppliers in the category are stuck in the middle and see their market share and profit decline.

I like the idea of New Luxury providers being able to shatter the traditional demand curve (i.e. the higher the price of a product, the fewer numbers of items sold). New Luxury companies "achieve high margins and high volumes at the same time." Starbucks, Sub-Zero, and Martha Stewart are brands that come to mind.

Fashion professionals will be interested in the chapter-long case study dedicated to Victoria's Secret. In it, the authors discuss the ‘Body By Victoria’ line of products that, "at more than twice the price of the average bra, it now sells more units than any other bra in the United States". I was very interested in reading how the man behind Victoria's Secret managed to stretch the position of its brands, to make it an everyday luxury. There is also a word on the high performance athletic clothing brand, Under Armour, as well as some discussion on Zara.

Overall, I enjoyed this book very much. It will serve as a reference whenever it comes to speaking of mass luxury.

Review:  With both authors having VP level experience at the Boston Consulting Group studying retail practices, it’s not hard to see how they were able to successfully collaborate and write a book with such insight into the market of consumer economics.  They discuss consumers and their buying trends without boring you to death and give you solid statistics that you can confidently quote in any conversation.  The only downfall cited by those that have read it is the marketing jargon.  Some readers have said that it may be difficult for those who are not involved in the industry to understand what is being discussed.

Catching rave reviews from captivated readers, it has been touted as a “must read” for both retail marketers that are trying to find their segment to consumers who find it much harder to find items that aren’t “luxury” anymore.  It really boils down to being a good read for anyone that is in the retail business or marketing.