As the holiday slowly approaches, Neiman Marcus unveiled its 84th Christmas Book on Tuesday. The luxury retailer displayed some of its extreme items in its downtown Dallas store. Some products available are a $250,000 houseboat for two, a $15,000 edible gingerbread playhouse and a $125,000 private party organized by celebrity event planner Colin Cowie for its wealthier, and quite possibly crazier buyers. However Neiman also “respects” costumers with smaller budgets, as half its products, including scented candles and tweezers incrusted with crystal, are under $250.
Cleary, the average consumer will not be able to afford many of the products in Neiman’s catalog. The products are over priced and even though it’s the holidays, it’s too outrageous and unnecessary for most people. However, in my opinion, Neiman realizes that its catalog will not meet the demands or needs of many buyers. Instead, the catalog is supposed to trigger people’s what ifs. What if I could buy a special edition Camaro or a personalized glass sculpture by Dale Chihuly? The holiday season is the only time when it’s the norm to fantasize and maybe, even make your dreams into realities.
Furthermore, while Neiman’s catalog won’t be a hit with a large number of buyers, the high cost of its items will way out this fact. It’s not just about the number of buyers, but how much you can sell your products for. Neiman’s catalog is excited and has products in there that not many retailers would offer. Even though not many people will buy, they’ll enjoy looking at crazy gifts and be amazed at how ridiculous some of them are. So even with out buying any of the products inside, Neiman Marcus still leaves its costumers happy.
http://www.msnbc.msn.com/id/39525453/ns/business-retail/
I enjoyed reading your post. In fact I think I may of got carried away with my own "what if?" when I read about some of those products on offer.
ReplyDeleteAs we continue our roller coaster ride of current economic times it is amazing to read about such stores spending huge sums of money on products that most likely will not sell. Is it a complete waste? Most of the products mentioned are probably significantly cheaper at true cost prices.
However, your post shows the true nature of promoting such expensive items. At times where anyone can start up an online store, at times where the biggest players of the retail industry suffer most...
To reach the customer, retailers must be different.
And a $15,000 edible gingerbread playhouse isn't offered everywhere.
Great article.
Written by Michael Milner
I really enjoyed your blog Mia!
ReplyDeleteIt is interesting that the market trends all point one way, and yet Neiman Marcus thinks that they can be unique and still succeed. I will be very interested to look and see what their sales are like this holiday season.
ReplyDeleteAriel Levin