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A sideways trading pattern began in January The Dow hit a record closing high of 26, Since then, it's traded in a sideways range of 23, to 25, Investors boosted gold prices on fears of a further contraction. They were worried about Congressional threats of a debt ceiling crisis and potential debt default. Once fears subsided and the bull market in gold was over, the commodity traded sideways throughout As the economy continued to improve, gold prices entered a bear market in Prices continued falling in before the upward climb that began in September A sideways trend can also mean that one asset class is turning over to another one.
For example, consolidation can occur when traders move away from small-cap stocks to large-cap stocks. That happens in the middle of the expansion phase of the business cycle.
Consumer Behavior: From Trading Up To Trading Off | Branding Strategy Insider
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Trading Up
While commanding a premium over conventional products, they are priced well below superpremium or old-luxury goods. But it is far from being the highest-priced product in the category. Coach similarly positions its leather goods at prices below Gucci's, but well above those of Mossimo at Target.
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In laundry appliances, for example, conventional industry wisdom held that washers and dryers could not appeal to consumers' emotions. Due in large part to their European styling and speedier, gentler cycles, these machines have become immensely popular.
Now Whirlpool cannot keep up with demand. As consumers shop more selectively, the categories new-luxury goods occupy tend to polarize.
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Consequently, people's buying habits do not invariably correspond to their income level. They may shop at Costco but drive a Mercedes, or they may buy private-label dishwashing liquid but drink Sam Adams beer. Left in the cold are midpriced items that fail to distinguish themselves on any of the three rungs of a product's ladder of benefits. Companies unable to match the prices of low-cost products or promise the emotional engagement of new-luxury goods face what we call death in the middle.
It may be a retailer like Sears, which the mass merchandisers and specialists in particular categories of goods are beating on price, or it may be a cosmetics and personal-care line like Max Factor, which does not deliver on the ladder of benefits or offer a cost advantage. Still, new-luxury goods are most often developed by entrepreneurs who are outsiders to the category as were Ely Callaway of Callaway Golf and Jess Jackson of Kendall Jackson or imaginative corporate leaders who are able to think like outsiders such as Leslie Wexner, who built Victoria's Secret.
NFL Draft Strategy: Why Trading Up Is the New Trading Down
Instead of relying solely on polling and focus groups, they cast a critical eye at categories in which products and services have become expensive and stale, or cheap and undifferentiated. They then spend time interacting with their target customers, often one-on-one. Even in these difficult economic times, the trading-up phenomenon is powerful.
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Whether your brand is catering to the higher or lower end of your product category, people tend to gravitate to the much broader middle ground. Depending on whether your product is high importance which typically requires more consideration and slow thinking or low importance in which a decision can be made spontaneously and through fast thinking , customers can be convinced to either trade up or down.
For brands looking to steal or grow market share, this can be an incredibly useful tool. The grocer has overcome its initial perception of being a German low-cost retailer, often bundled together with Lidl.