What Trader Joe's Can Teach Luxury

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Transcript

00:00This tote is a status symbol now.

00:03If you live in the US, where Trader Joe's is based,

00:06it signals a certain urban sophistication.

00:09It means you're discerning with your time and money

00:12and you have taste.

00:14Even we Brits, who don't have the grocery chain,

00:17have jumped on the bandwagon.

00:19Carrying the bag here, or even in Japan and South Korea,

00:23is a subtle flex.

00:25If you know, you know, right?

00:27You also have the means to travel stateside and get one.

00:31And this is all happening with just 600 stores.

00:34Scarcity is nothing new.

00:36It stokes demand.

00:38But I think there's a two-step formula for Trader Joe's success

00:42and it's something the luxury market can replicate.

00:46First, you have to offer some items that are relatively affordable.

00:50This original Trader Joe's tote is $3.99.

00:55The limited edition mini totes, at $2.99,

00:59created a frenzy when I was in midtown Manhattan recently.

01:03Think about Coach's bag charms and Prada's hair scrunchies.

01:07On the other hand, Louis Vuitton's beautifully packaged lipstick

01:11should have been a TikTok sensation, but not at $160 a pop.

01:17The second thing luxury brands can do is incorporate experiences,

01:22especially if they can be shared on social media.

01:25Food is particularly promising.

01:27Brands from Coach to Alaya are opening cafes.

01:31The original is Ralph Lauren's Ralph's Coffee,

01:34which has more than 40 locations around the world.

01:37Carrying one of its green and white tumblers is the same vibe as a Trader Joe's bag.

01:42The problem, as always, is staying power.

01:45It's hard to know how long Trader Joe's totes will retain their status.

01:50Error one, which is finally coming to New York City, might be next.