March 17, Copy by: Lindsey Saletta Luxury can be a divisive word. Traditionally, a luxury denotes something that is enjoyed by certain people and not by others. It speaks of the privilege and exclusivity enjoyed by an elite and unattainable few.
This article considers both the backdrop of current challenges in the luxury industry and a multidimensional definition of the luxury concept.
The authors focus on consumer luxury value perception and related consumer behaviour, and suggest practical implications for the successful management of luxury brands. Facing serious challenges in an ever-changing market environment, luxury brand managers have to translate the deeper values of luxury in successful business models.
Below, the multidimensional components of luxury value perception provide a useful basis for luxury brand management in a global approach with local implications. In spite of the global recession, luxury seems to be everywhere; it has become an increasingly used term, but its true meaning and values are seldom clear.
Luxury is a term that is routinely used in our everyday life: However, what does luxury really mean? The only consensus on the meaning of luxury is that there is little consensus.
The understanding of luxury differs between individuals and product categories, is situationally contingent and depends on the subjective experience and individual needs of the consumer. Consequently, an integrative definition of luxury has to reflect the subjective and multidimensional character of this concept simultaneously addressing financial e.
Current Challenges for Luxury Brands In a dynamic market environment characterised by the interplay between increasing mobility, global communication and media distribution, but distinct economic, political, legal and educational environments, international luxury businesses face a variety of serious challenges that require a global perspective.
More than western countries, emerging markets such as Asia exhibit enormous growth rates in the domain of luxury. The question arises as to whether the market for luxury goods can be treated as a single market in which the Western luxury lifestyle can be replicated in a standardised approach, or if cultural differences require a country-specific marketing approach.
In the continuum between exclusivity and ubiquity, what is the right approach for luxury brands? In this context, the question arises only if the core luxury brand is related to easy to copy brand insignia instead of a complex system of functional and psychological product attributes and deeper values.
Herein lies the challenge to protect the strength of the core brand and prevent brand erosion — in particular facing the prevalence of low-cost counterfeits that undermine the values of the genuine luxury brands. Historically, luxury brands were reserved for the privileged few, the rich and the elite.
Nowadays, luxury is no longer reserved for the rich classes; therefore, segmentation approaches based on criteria such as wealth and income are insufficient. Even if younger and less affluent consumers are more likely to afford only one or two selected items from their favorite luxury brand, they are willing to save money for this purchase and proudly present it to their reference group.
While in the past, status-oriented thinking was considered to be the most dominant reason for luxury consumption, a much wider differentiated range of buying motives is currently the focus of research and business practice.
Finally, the Social Value dimension of luxury value perception focuses on prestige orientation and status consumption.
Considering that the motives for the purchase of luxury goods have become highly differentiated, there is no typical luxury buyer, but various consumer groups.
Are the Values of Luxury Universal? Existing studies support the assumption that the multidimensionality of the four luxury values is stable across countries. Nevertheless, the relative importance of a single dimension varies across consumer groups and product categories; there are both country-specific as well as industry-specific differences.
For instance, in considering the financial component of luxury value, particularly in economically turbulent times, there are consumers who have discovered luxury goods e.The Concept of Luxury Brands by Klaus Heine echniTsche Universität Berlin, Department of Marketing Prof.
Dr. Volker rommsdoT r Wilmersdorfer Str. .
Luxury Brand is a brand name good that is sold on the open market. Most luxury brands are extremely expensive and the consumer most pays for name recognition and not product quality The modern understanding of a brand is consumer and identity oriented.
Accordingly, brands are regarded as images in the minds of consumers and other target groups (Esch , p. 22), which are designed by. Free Essay: THE CONCEPT OF LUXURY BRANDS Contents I – LUXONOMY 1. The Basic Definition of Luxury The Necessity-Luxury Continuum The Relativity of.
Luxury brands promote exclusivity - meaning that when social media marketing became the big thing, the prospect for luxury brands was, and still is to some, alarming.
Download our luxury brands . Luxury, in its new context is the enjoyment of the best in life.
Luxury, in its new context (and in the very truest form of its vogue over the centuries) is the enjoyment of the best in life: the experience of beauty, knowledge, and humanity at their deepest and most inspiring. It is the sweetness of life. This presentation corresponds to the paper about the definition and categorization of luxury products and brands, "The Concept of Luxury Brands" by Klaus Heine, leslutinsduphoenix.com