The Eternal Principles for Creating Luxury Brands

May 27, 2021 0 Comments

By definition, a luxury brand is an exceptional brand, cheap at a high price and aimed, at least primarily, at a select group of the socio-economic elite. Luxury isn’t about unreachability, though. After all, you can’t profit from consumers who can’t buy your brand. However, luxury is about the consumer who struggles a little to buy something extraordinary but quite expensive for his or her financial capabilities. When you are used to driving a BMW 760 (price: over 85,000 euros), it is no longer a luxury for you, although you may 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 a luxury for you.

Before we get into a more in-depth discussion on luxury, I think it will be good to recognize two fundamental facts:

Luxury is relative. One man’s luxury is often another’s (usually richer) daily lifestyle.
The standard of luxury is changing. Today’s luxury is often the commonly expected standard for tomorrow. Luxury brands are under constant pressure from non-luxury brands looking to offer similar value for a lower price, thus eroding luxury status.
A lot has been said lately about the changing nature of luxury these days. Although some of the changes proclaimed are nothing more than the result of historical myopia, some developments are worth noting.
There are now more levels of luxury than ever to match new levels of wealth. More billionaires, more multimillionaires, more millionaires, more super luxury brand identity designer
affluents (annual income above $ 150,000), affluents (annual income above $ 100,000) and near affluents (annual income above $ 75,000). A Toyota Camry (around $ 25K) is considered a luxury car at some level of wealth, at a higher level it’s the BMW 7 Series (around $ 115K), at an even higher one it’s Maybach 62 (around $ 375K) ).
Some of the luxury shoppers are now a little less interested in purchasing uniform symbols of status / identity and opt for developing an individual style and expressing themselves in original ways. The tension between the traditional (safer and more genuine luxury) and the innovative has always made luxury grow. Currently, luxury tends more towards the innovative than the traditional.
There are more “out of class” buying now, both up and down. The rich don’t feel obligated to always buy expansively (in fact, the rich generally look for the best deal on whatever they want to buy, no matter how extravagant). The less wealthy have also developed an appetite for luxury when and where they can afford it.
There is a tendency to spend more on luxury experiences rather than goods, at least among wealthy Americans. This trend is strongest among wealthy experts who already know that object attraction wears off as cherished experiences improve over time as they are remembered, retold and retold.
There are now more luxury and less classic hits. Luxury was defined in the past driven by tradition by the classics. The novelty driven present, evident even in non-luxury sectors, transforms the success of today’s luxury brands into sweet but short-lived.
The immutable nature of luxury
Despite all these significant developments, the nature of luxury has remained essentially unchanged.

People buy luxury brands for:

Feel special and away from the crowds.
Feel superior and privileged.
Feeling of value and importance.
Exercise skills and freedom (“I can afford it”, “I can do it”).
Reward yourself for your efforts and results.
Console him and recover from a defeat or misfortune.
Signal status and recognition and compliance with commands.
Demonstrate refinement, knowledge and / or perfectionism.
Delight the senses, experience pleasurable sensations and sensations, or create an infrastructure for future favorable experiences.
Join a certain group and lifestyle.
Sign of affiliation and membership.
Remember your “real” (aspired?) Identity.
Ignite hope and mobilize motivation and energy.
Indulge and pamper yourself, take care of yourself.
Feel loved, cared for and even pampered.
Show feelings of gratitude, admiration, or great affection.
Luxury brands are specifically designed to serve as a means for consumers to perform one or more of these tasks. Here are the ten eternal principles for developing and managing a luxury brand:

A luxury brand is first and foremost a superior quality product and / or service (a quality gap compared to the competition is recommended but not mandatory).
The products and services are not designed and planned according to the tastes and expectations of consumers, even if they appeal and fulfill deep desires sometimes n