By definition, a luxury brand is an outstanding brand, justifiably priced highly and destined, at least primarily, to a select group of the social-economic elite. Luxury is not about unattainability though. After all, you cannot profit from consumers that cannot buy your brand. However, luxury is about the consumer outstretching herself a bit to buy something extraordinary but rather expensive for her financial ability. When you are used to driving a BMW 760 (price tag: over 85,000 Euros), it is no longer a luxury for you, although you might be pleasantly aware that it is for many. Alternatively, paying 115,000 Euros for a Maserati Quattroporte Executive GT Automatic will probably be more of luxury to you.
Before entering a deeper discussion of luxury I think it will be good to acknowledge two basic facts:
1. Luxury is relative. One man's luxury is often another's (usually richer) everyday lifestyle.
2. The standard of luxury is mutable. Today's luxury is often tomorrow's commonly expected standard. Luxury brands are under a constant pressure from non-luxury brands trying to offer a similar value for less, thus eroding the status of luxury.
Much has been said lately about the changing nature of luxury these days. While some of the proclaimed changes are no more than the result of historical myopia, certain developments are worth noting.
1. There are now more layers of luxury than ever before to match new levels of affluence. More billionaires, more multi-millionaires, more millionaires, more super affluents (annual income over $150K), affluents (annual income over $100K), and near affluents (annual income over $75K). A Toyota Camry (around $25K) is considered a luxury car at some level of affluence, at a higher level it's BMW 7 Series (around $115K), at yet a higher one it's Maybach 62 (around $375K).
2. Some of the luxury buyers are now somewhat less interested in purchasing uniform symbols of status / identity and they opt for developing an individual style and expressing themselves in original ways. The tension between the traditional (more safely genuine luxury) and the innovative has always burgeoned forth luxury. Currently, luxury leans more towards the innovative than the traditional.
3. There are more "out of class" purchases now, both upwards and downwards. The wealthy feel no obligation to always buy expansive (actually, affluents typically look for the best deal on whatever they want to buy, no matter how extravagant). The no so wealthy have also developed an appetite for luxury when and where they can afford it.
4. There's a trend towards spending more on luxury experiences rather than goods, at least amongst wealthy Americans. This trend is stronger among seasoned affluents who already know that the attraction of objects wears out while cherished experiences just get better with time as they are remembered, told and re-told.
5. There are more luxury hits now and fewer classics. Luxury used to be defined in the tradition-driven past by classics. The novelty-driven present, that is evident in the non-luxury sectors as well, turns the success of luxury brands of the day into sweet but short-lived.
The unchanging nature of luxury
Despite all these significant developments, the nature of luxury has remained unchanged in essence.
People buy luxury brands in order to:
1. Feel special and apart from the crowd.
2. Feel superior and privileged.
3. Feel of value and importance.
4. Exercise ability and freedom ("I can afford it", "I can do that").
5. Reward themselves for efforts and achievements.
6. Console one and recuperate from a setback or misfortune.
7. Signal status and command acknowledgment and respect.
8. Demonstrate refinement, connoisseurship and /or perfectionism.
9. Delight the senses, experience pleasant sensations and feelings or create an infrastructure for future favorable experiences.
10. Participate in a certain group and lifestyle.
11. Signal affiliation and belonging.
12. Remind oneself of one's "real" (aspired?) identity.
13. Enflame hope and mobilize motivation and energy.
14. Indulge and pamper oneself, take care of oneself.
15. Feel loved, taken care of and even spoiled.
16. Show feelings of gratitude, admiration or great affection.
Luxury brands are specifically designated to serve as means for consumers to fulfill one ore more of these tasks. Here are the ten eternal principles for developing and managing a luxury brand:
1. A luxury brand is first and foremost a product and/or service of superior quality (a quality gap from competitors is recommended but not mandatory).
2. The products and services are not designed and planned according to consumer tastes and expectations, even though they appeal and cater to sometimes-hidden deep-routed desires. A luxury brand sets its own standards and does not adhere to fashions. There is an air of leadership to it; it is exceptional, unique, original, artistic-creative, surprising, and novel (but never peculiar in a ridiculous or potentially repelling manner).
3. A luxury brand's most important value lies beyond the core product function or practicality.
4. Luxury brands have something extravagant / excessive / redundant and overly generous about them. Something that is clearly not necessary: the use of unjustifiably expensive materials, performance that is far beyond all needs and requirements, an exaggerated level of service.
5. A luxury brand always expresses zealousness for quality, highly held values or even an ideology, a distinctive culture, together with sense of hedonism, passion for life, and a free spirit.
6. A luxury brand will always be linked with the circle of those who "run the world" at that certain period of time and with the success symbols of the time.
7. Behind a luxury brand there are often legends of eccentric genius creators, mysterious production processes, secret formulas, exceptional preparations etc'.
8. A luxury brand is never managed in a democratic way, but rather with authority or even with dictatorship, by a genius creator or by an inspired leader who demonstrates, inside and out, a strong passion for the product and pedantry for every small detail.
9. A luxury brand must be rare or difficult to reach in some way. The awareness to the brand and the desire for it sometimes wide-ranged (while the numbers of buyers has to be limited) and other times restricted to a few that are in-the-know. Even the buyers themselves, must not be inclined / capable to purchase the luxury brand too often.
10. Luxury brand consumers expect to be distinguished from all others, and to be protected from them (the No-Mix principle). At the same time, they expect a special intimacy between them and the company and its managers, as well as flexibility regarding rules that are afflicted on others.
Feng Shui Your Gym Forget stark lighting and full-length vanity mirrors. Hello waterfalls and fine art. Led by ambitious gym projects, more gym-goers will happily embrace the "Fend Shiu'd" gym. Projects such as Gwinganna in Austrailia and Clay in New York are prime examples of this trend, which reconfigures the gym environment as a place to not only tone the body, but also to elevate the mind and spirit.
Wellness Wellness is sweeping the globe, supported by scientific breakthroughs and the realization that the medical industry has been based on a "sickness" model. With consumers desiring to be healthier, more vital, and youthful in appearance, alternative practices and an emphasis on nutrition are becoming important aspects of spa-going.
Forget the deprivation Want to lose weight? Forge the deprivation long associated with detox programs and weight-loss boot camps. Instead, spa-goers are indulging themselves in high thread-count sheets, well-appointed rooms, spa treatments, and a nurturing environment as they live it up while detoxing and losing weight.
Spa Real Estate With health-focused baby boomers entering the real estate market to downsize or purchase vacation homes, a continuing trend for 2008 is a growing number of mixed-use developments with a strong spa focus. From spas adding residences, to developers adding spas, to hotels/resorts with spas adding condo units, the spa real estate mania is on.
Taking Sleep Seriously Recent medical studies stress the importance of sleep for improved productivity at work, cardiovascular health, and even weight loss. In 2008, look for more hotel spas to bring in sleep directors, more destination spas to offer "snoozing zones" and massage scheduling that allows the therapist to say, "Stay on the table as long as you like" (finally!)
Hydro and Thermal Super-Experiences Europe has long been known for its elaborate "sauna worlds" where guests can experience a Balinese mutli-steam bath, Finnish Sauna, Greek Herbal Bath, Indian Blosom Steam Room, Japanese Salt Steam Bath, Turkish Hammam, and a Zen garden - all in one place. America's newest high-profile resort and day spas, guests are starting to be treated to more than just a steam room, sauna and Jacuzzi.
Branded Brands such as Armani and Versace, known for their chic designs, are opening over-the-top spas around the world. Guests can indulge at the first Armani-branded spa in Tokyo, Versace Group's spa at its Austrailian resort, and Prada Beauty's line exclusively at Ritz-Carlton properties.
The Next Generation of Spa-goer Always trendsetters, teens are making their presence felt in the spa industry. Nearly four million have been to a spa where they learn how to deal with stress, eat nutritiously, and care for their skin. Thirty-four percent of spas offer teen packages and 16 percent have teen programs.
Spa Lifestyle=Healthy Lifestyle Working to educate spa-goers, spas are teaching the basics that lead to a healthy lifestyle: eating nutritious food, exercising and relieving stress. In the U.S., 51 percent offer educational programs and nutritional consultations, 40 percent offer healthy eating classes, 26 percent have educational offerings on obesity and weight-gain issues, and 17 percent offer exercise programs for children and teens.
Plugged In for Time Out As stress relieving a spa treatment is supposed to be, some people still need to be plugged in to take time out. Spas are incorporating technology such as WiFi in relaxation rooms. They are also developing treatments that combine biofeedback technology, guidance from wellness professionals, and light therapy to those suffering from depression, Seasonal Affective Disorder, and insomnia.
Growing Green A full 76 percent of U.S. spas say they're applying environmentally sustainable practices, such as using green building tactics, planting organic gardens, using products made from locally-grown fruits, vegetables, herbs and plants, or selling mineral essential makeup.
Both Dan Herman & Ann Knapp are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Dan Herman has sinced written about articles on various topics from The Ocean Beach, About Branding and Marketing Strategies. Dr. Dan Herman, a globally renowned strategy consultant, an author and a lecturer, is the author of "Outsmart the MBA Clones: The Alternative Guide to Competitive Strategy, Marketing, and Branding". Dan Herman's top article generates over 60500 views. to your Favourites.
Ann Knapp has sinced written about articles on various topics from Diamonds, Finances and Skin Care. Geologix Inc. manufactures products using a proprietary formula featuring 34 natural minerals contained in the ancient sea water from the famous Michigan Basin -- a concentration of minerals higher than that found in any known body of water in the world.. Ann Knapp's top article generates over 14800 views. to your Favourites.