Need a Business Idea? Tap Into Lifestyle Trends in the Evolving Luxury Market

The idea of luxury is evolving consumers, as they're spending any extra money have in a variety of different ways they did before the recession, to a report this week by consumer-research company IBIS World. For entrepreneurs, lifestyle shifts can help spark new business ideas.

"Instead of returning those discretionary purchases they previously cut and readily splurging on luxury goods like full-priced jewelry or sports cars, Americans have opted more subdued, conscientious and functional versions of luxury," wrote Nikoleta Panteva and Agata Kaczanowska, the IBIS analysts authored the report.

The report defined this "new luxury market" as one where consumers focused on cheap splurges, tailored attention, and green or healthy choices. These market trends expected to drive more than $1.5 trillion revenue this year.

Here, three ways you can tailor your startup capitalize on the trends:

1. Offer affordable splurge. While consumers still lust designer brands, they are demanding deals. In the 5 years, 73 new sample sale websites -- like Gilt.com and HauteLook.com -- launched, hawking luxury goods a discount. IBISWorld expects there to be 89 such sites by end of the year. In the same frame, the number of sites selling discount vouchers goods and services -- like Groupon.com and LivingSocial.com -- has surged to more 600.

And while consumers are less likely to spend top dollar fancy destination spa experiences, they are turning increasingly mini-splurges like a manicure a nail salon franchise or day spa.

2. Create more personalized options. Shoppers are likely to crack their wallets if what are buying has been tailored specifically them. The market for colorful, individualized tech gadgets is expected to well this year. And in this vein of personalized goods, the report noted that consumers are willing spend on adjustable beds and personalized mattresses.

If you have a retail location, think offering personal shopping assistance or makeovers, lux services offered by some department stores consumers are willing to shell for these days. Keep this in for your online marketing, too. One reason search engines and social networks are successful is their ability to gather data users and personalize their shopping experiences targeted ads.

3. Show how your product is a healthy and/or eco-friendly choice. Americans increasingly willing to more money on their health and the environment, according to IBIS World data. As a , farmers' markets are considered mainstream and consumers are more willing to pay the higher prices of organic food grocery stores, too. If you're the snack food business, the report noted cookie and cracker producers are expected to continue to fetch a premium organic choices as .

When it comes exercise, consumers are treating themselves expensive gym memberships and fitness classes. The report also noted Americans are opting more for electric and hybrid vehicles in effort to be green.


Adapted from: entrepreneur.com, June 28, 2012.