Luxury Brand Marketing

Deluxe: How luxury lost its luster, by Dana Thomas, brings a hard hitting, raw look at the world of luxury and the mass demand of luxury that has occurred. The book was published by the Penguin Group in 2007. Luxury is defined by Thomas as truly special, and was only available to the aristocratic world of wealth and old money in western culture. Luxury signified an experience and lifestyle that denotes royalty, fame, and fortune. However, with large companies owning the former family-owned luxury producing businesses, profits are the main goal not the production of luxury. Thomas reveals the unfortunate demise and rise of

The consumption of luxury goods in China is mounting sharply. Not only those born to elite families, but also many common people are greedy for luxury brands (China, a Booming

Sociocultural: In the recent years, the desire to appear wealthy has attributed to the increased popularity in luxury products. Also, the desire for luxury goods was promoted by effective advertising and TV programming that promoted conspicuous consumption to middle-income consumers. Middle-income consumers also tend to “reward” themselves with luxury items.

An increasing economic interdependence of national economies across the world experiences a rapid cross-border movement of goods, service, technology and capital. Luxury goods industry, serve as one of the most competitive industry, emerging and developing rapidly all the time. To a great extent, globalization promotes the development of luxury goods industry significantly in spite of the big shock hit by several times of economic crisis.

Our concept is to provide an ultra luxury product and service to the market for consumption.

In “Marketing to the Millennials”, Suzy Menkes addresses the importance of every luxury fashion brands to shift their marketing tactics within technology, particularly to market to the Millennials. Menkes asserts a concern to these luxury brand that they will be unrecognized to the Millennials if they do not advertise in a way that allures them. Millennials is the generation that has been actively interacting with the immense increase of technology. She recommends if these companies want to stay a popular functional company they will have to adjust to a different kind of marketing, which targets Millennials. While the increase of technology has had an increasing impact to the recent generations, companies should market to all generations instead of Menkes suggested targeted consumers, which is misdirected.

There is relatively no threat of substitution in the luxury goods industry. This is mainly because of the quality and price of substitutes, and the cost of switching to the consumer. The price of counterfeit goods that copy the luxury goods causes there to be a positive monetary cost in switching but there is a loss of prestige as luxury goods are characterized as having a persona, paucity, that are accompany by a performance of a quality product with unique design, extraordinary capability and innovation. There is no comparison between luxury goods and the

Before the 20th century luxury was only available to the elite, it was the mechanism of social and cultural stratification and demarcation showing the symbolic belonging to the society. The luxury industry did not exist; luxury performed only one specific function – the demonstration of the status. From the 20th century onwards an important process started to take place – the democratization of luxury. It becomes available to mass internationally thanks to the development of the digital.

In nowadays, buying luxury brands is not only showing a sign of wealth, but also a kind of rewards for people’s hard working. Luxury products sell high market prices because of their designs, brand names, and the qualities. People want to buy luxury products because their quality is better than target brands. For example, the brand like Bottega Veneta is known for its traditional design of leather goods; their handbags are handmade in Italy. Comparing to Bottega Veneta to target brands, Bottega Veneta’s design will not easily out of style, but target brands will easily out of styles because their designs are relatively ordinary. However, in the recent year, some luxury brands’ reputation has gone done because those brands were shifting their factories to other countries and then shipping back to Italy just for the label. Technically, the phrase “Made in Italy” is not really manufacture in Italy anymore, sometimes this product 's qualities are not as good as before. There is a rising concern of whether these luxury goods really match with the expensive price tags.

Although currently the global economy seems are fluctuation or even is experiencing a noticeable recession (??The Euro Area,?? 2008; Webster, 2008), request for luxury goods worldwide is enhancing and swiftly increasing, with over 200 billion dollars of annual sales on average every year. (Mcferran et al., 2014). Luxury items represent abundant consumer goods sales all over the world; worldwide selling of accessories, top grade apparel, beauty, jewellery and watches, and many other products (Roberts, 2010). For luxury industry major market segments are not limited into some developed western countries any more, the expansion of markets also reach to emerging markets like some Eastern developing countries or areas such as China (Sherman, 2009). Over and above the traditional developed segments of market new luxury market segments are developing rapidly. For example, performance by graduates of university with decent job as well as pretty high discretionary income, acted as the top twenty five percentage of the U.S. consumers who are called as Generation Xers, spend 1/3 more on personal luxury goods such as ornaments, high-end apparel, beauty as well as home luxury goods rather than those who are called as Baby Boomers (Park and Reisinger, 2009).

Under the leadership of Rose Marie Bravo, former president of Saks Fifth Avenue, and a team of highly qualified managers experienced in interpreting and analyzing consumer market trends, they were able to reposition the brand from being an old and unexciting brand to a stylish and innovative one. They were able to give the brand a modern attitude, reintroducing it as a luxury brand, that is both aspirational and functional, and a brand that attracted younger customers, without alienating its core customer base—establish a niche in existing gaps without compromising their core values. Consequently, they have discovered a great positioning between

The overall sales of luxury goods in the year 2009 is expected to be more than US$150 billion and Asia contributes 10% to it. The concept of luxury is now not confined to only to Europe and US, the Asian subcontinent contributes majorly to it, with India and China as the newly emerging markets. Professor James Twitchell (2002) comments on the democratization of luxury and the changing consumer psychology These new customers for luxury are younger than clients of the old luxe used to be, they are far more numerous, they make their money far sooner, and they are far more flexible in financing and fickle in choice. They do not

The aspire to become part of what luxury products represent and, as soon as their finances permit, are very happy to fulfill long-held dreams by buying goods and brands that help them satisfy their personal and social aspirations” (Lu, 24).

Celebrities consult with marketing agents who uses three strategy efforts for personal branding. First, the pure selling approach where “an agent presents a client’s qualifications to potential buyers until he or she finds one who is willing to act as an intermediary” (Solomon, Marshall, & Stuart, 2016). Second, the product improvement approach where “an agent works with the client to modify certain characteristics that will increase his or her market value” (Solomon, Marshall, & Stuart, 2016). And third, the market fulfillment approach where “an agent scans the market to identify unmet needs. After identifying a need, the agent then finds a person or group that meets a set of minimum qualifications and develops a new product” (Solomon, Marshall, & Stuart, 2016).

1, “Luxury is as old as civilization, it can be anything high and exceptional regard from ordinary things”. Luxury is known as an expense, it would normally be classed in higher society and is more of a want then a need. If an object was described as luxury, it could normally mean it is a unique quality handcrafted piece meaning you were paying for the hours of labour as well as the finished piece.