The idea of luxury is evolving for consumers, as they’re spending any extra money they have in a variety of different ways than they did before the recession, according to a report this week by consumer-research company IBIS World. For entrepreneurs, these lifestyle shifts can help spark new business ideas.
“Instead of returning to those discretionary purchases that they previously cut and readily splurging on luxury goods like full-priced jewelry or sports cars, Americans have opted for more subdued, conscientious and functional versions of luxury,” wrote Nikoleta Panteva and Agata Kaczanowska, the IBIS analysts who authored the report.
The report defined this “new luxury market” as one where consumers are focused on cheap splurges, tailored attention, and green or healthy choices. These market trends are expected to drive more than $1.5 trillion in revenue this year.
Here, three ways you can tailor your startup to capitalize on the trends…