FROM OUR PARTNERS AT SCHMIDPREISLER INTERNATIONAL STRATEGY CONSULTANTS:
It has long been controversial, if the questions “What do I need to satisfy my needs?” and “What are my wants?” are basically the critical purchasing criteria or whether the purchasing power of the people is decisive when it comes to purchasing decisions. Just as controversial was our thesis that independent from purchasing power orientation on the price plays the decisive role when it comes to satisfaction of needs, while satisfaction of wants is oriented on immaterial values; for instance the prestige value of a brand.
Deduced from Maslow’s pyramid of needs the market was divided in a top, center and a wide base. The center of the market was viewed as especially attractive, because the common attitude was one could assert oneself with an average product quality at slightly higher prices and margins than in the rough climate of the mass market and it would take less time and effort then it would take in the noble luxury segment.
The “Center of the Market” was a hot topic of discussion for many years. There were vehement advocates of the center and there were those who left it carefully and without much ado. The center of the market went through emotional roller coaster rides. First it was “out” then it was “in” again. For us it was always a phantom.
In the 80’s of the past century, after the change of values became a widespread movement and the consumption society prepared for the pursuit of new targets which were not supposed to be shaped by a never ending more on consumption anymore, we realized that the market needs a new view. This new view should take into account the changing habits the life of people. This was the basis for our Waisted Rectangle©. A view of the market, divided in four segments grasping everything that serves the satisfaction of needs and wants. And we said that when it comes to the satisfaction of needs, the price plays a decisive role. For the satisfaction of needs, the immaterial value assigned to these products is crucial.
We named these four segments: Luxury, Premium, PremiumEconomy and Economy. The center ceased to exist for us. Since the first public introduction till today, almost 20 years have passed. For the implementation of a new view of the market this is a relatively short period of time. We are proud to say that our view of the market serves more and more often as basis for businesses for their positioning on the market. Whole industries have adopted the Waisted Rectangle©. The automotive industry which for instance has practically given up the whole middle class and now instead offers Luxury limousines, Premium cars often also called business class aside from its bread and butter models develops and sells upgraded PremiumEconomy models.
2007 was also the year where airlines started to exchange their three-class-structure through a four-segment-structure based on our Waisted Rectangle©. And we just recently read that the fashion industry realized that the fashion market also functions according to the view of the Waisted Rectangle©.
Fashion that is supposed to satisfy needs and fashion that is supposed to fulfill wants. There is Economy and PremiumEconomy on one side and Luxury and Premium on the other side. The success business enterprises such as H&M, Zara and C&A have achieved in the past few years has certainly contributed to the fashion industry giving up the long propagandized three-class-theory, where the center of the market was the comfortable segment for people who were not able to really decide what they actually wanted to be.
Sphere: Related Content
Deduced from Maslow’s pyramid of needs the market was divided in a top, center and a wide base. The center of the market was viewed as especially attractive, because the common attitude was one could assert oneself with an average product quality at slightly higher prices and margins than in the rough climate of the mass market and it would take less time and effort then it would take in the noble luxury segment.
The “Center of the Market” was a hot topic of discussion for many years. There were vehement advocates of the center and there were those who left it carefully and without much ado. The center of the market went through emotional roller coaster rides. First it was “out” then it was “in” again. For us it was always a phantom.
In the 80’s of the past century, after the change of values became a widespread movement and the consumption society prepared for the pursuit of new targets which were not supposed to be shaped by a never ending more on consumption anymore, we realized that the market needs a new view. This new view should take into account the changing habits the life of people. This was the basis for our Waisted Rectangle©. A view of the market, divided in four segments grasping everything that serves the satisfaction of needs and wants. And we said that when it comes to the satisfaction of needs, the price plays a decisive role. For the satisfaction of needs, the immaterial value assigned to these products is crucial.
We named these four segments: Luxury, Premium, PremiumEconomy and Economy. The center ceased to exist for us. Since the first public introduction till today, almost 20 years have passed. For the implementation of a new view of the market this is a relatively short period of time. We are proud to say that our view of the market serves more and more often as basis for businesses for their positioning on the market. Whole industries have adopted the Waisted Rectangle©. The automotive industry which for instance has practically given up the whole middle class and now instead offers Luxury limousines, Premium cars often also called business class aside from its bread and butter models develops and sells upgraded PremiumEconomy models.
2007 was also the year where airlines started to exchange their three-class-structure through a four-segment-structure based on our Waisted Rectangle©. And we just recently read that the fashion industry realized that the fashion market also functions according to the view of the Waisted Rectangle©.
Fashion that is supposed to satisfy needs and fashion that is supposed to fulfill wants. There is Economy and PremiumEconomy on one side and Luxury and Premium on the other side. The success business enterprises such as H&M, Zara and C&A have achieved in the past few years has certainly contributed to the fashion industry giving up the long propagandized three-class-theory, where the center of the market was the comfortable segment for people who were not able to really decide what they actually wanted to be.
