Luxury Marketing: what is luxury?

Luxury Marketing

What is luxury?

It is about create a universe and it makes people dream. It is about history and heritage.  People create a particular relationship with the brand then they are link to this.

Luxury is not about fashion; it is rather an artistic approach.

Luxury is not about the price; it is about the object itself. For example, a Patek Philippe watch has more value through the time.

Luxury is about gaining value over the time: for example cars

→ Luxury is a necessity that begins where necessity ends

Definition from dictionary:

• Great comfort, especially as provided by expensive and beautiful things.
• Something expensive which is pleasant to have but is not necessary
• Something which gives you a lot of pleasure but which you cannot often do

Maslow Pyramid

• Personal accomplishment

• Deeper sign of recognition

• Self esteem

• Feel you deserve it

• Recognition

• You use a logo to communicate about yourself, about your status

• Love/belonging
• Physical needs

• Think about survival: not lux

[pic 1]

Luxury pyramid from kapefrer

[pic 2]

Luxury, fashion and premium positioning triangle:

 [pic 3]

Luxury is about the dream and premium the realism; it is about good quality, investment and performance.

Luxury is a special thing; it is something that is apart.

You buy the fashion because you want to seduce, please other people

Luxury Marketing is an oxymoron.

There are many rules that exist in promotion in luxury product. Marketing of luxury product has nothing to do with something else. Marketing goal is to sale a lot of product at any price. Luxury is a sort of social satisfaction, to be distinguished and be a part of a social stratification.

Luxury brands want people to buy product but not too much or it is not rare anymore, and then it is not luxury.

Now luxury is about famous people and rich people.

Anti-laws of marketing

• “Forget about positioning, luxury is not comparative”
• Does your product have enough flaws

• When you buy luxury product, you are not looking for perfection you are looking for art.
• Luxury product are made by human being, that’s why they have flaws

• Don’t pander to your customer’s wished

• Don’t ask the customer what they think.

• Keep non enthusiasts out

• Don’t try to make people who don’t like you love you
• They will water down the brand

• Don’t respond to rising demand

• Traditional marketing is about volume growth, luxury Is about parity. Ferrari deliberately produces fewer than 6000 vehicles per year. Sometimes customers have to wait 2 years for a vehicle. Hermes does the same for Kelly bags

• Dominate the client

• The luxury is the consequence of meritocracy. To preserve this spirit the brand much keep a distance from the client to maintain mystique

• Make it difficult for client to buy

• Rarity is intrinsic to the appeal of luxury so it must be maintained. Fro Kapferer and Bastien this means that luxury should not be sold on the internet

• Protect clients from non-clients, the big from the small
• The role of advertising is not to sell

• Luxury is about the dream the purpose of advertising is to make one dream about the product. Thus it’s aesthetic not informative

• Communicate with those whom you are not targeting

• Luxury has two value facets: luxury for oneself and luxury for others

• The presumed price should always seem higher than the actual price
• Luxury sets the price, price does not set luxury
• Raise your prices as times goes on in order to increase demand
• Keep raising the average price of the product range
• Do not sell
• Keep stars out of your advertising

• They will become the focus of the ad not your products and their problems will effect you image
• If you have a spoke person, your product look more accessible

• Cultivate closeness to the creative arts for initiates

• If you art close to the art, you are an artist and luxury product is art.

• Keep raising the average price
• Do not hire consultant
• Do not test
• Do not look for consensus

• Be different, be provocative

• Do not look after group synergies
• Do not look for cost reduction
• Just sell marginally on the internet

Who is the luxury consumer?

Everyone can be a luxury consumer.

Real customer of luxury is those who have 1 million to invest.

For Europe luxury is very significant, it brings jobs, in terms of brand that are concentrated.

He people who make the luxury product have an important voice, and are important in the making process.

Luxury is about the long term.

Luxury hands bags are a way to tell people who you are, tell about you identity. Luxury is like a label and like having a strong line on a CV. It helps indicate your status.

→ Key segments to describe worldwide luxury consumer

• Conservative

• I buy safe: know the product is god quality, it is a safe choice
• I buy it safe

• Opiated

• Lot of research, they know about the brand and the sector they have a patsion for it
• I know it

• Disillusions

• I am so over it
• Because luxury become less and less luxury → cut in costs

• Hedonist

• I love it
• They love to have pleasure
• They buy it because they love having luxury product, they love luxury experience
• They are not motivated buy the message

• Omnivore

• I want it all
• They buy everything
• They are capable to mix products

• Wannabe

• They wish they could be luxury consumer
• I desire it
• They dream about luxury product

• Investor

• They buy it because they want to sale it out after
• I worthy? I buy it

The dream

Extract from “shopaholic” movie.

The act of being able to have a luxury product is a part of the process.

The period of desire is longer than another product, and that’s what make the dream happened.

Dream can’ be quantified, they are not logical.

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