Marketing Of Luxury Brand Marketing

From consumer’s perspective, the motivation of their purchasing high-end products is complicated. According to the report of Mintel (Academic.mintel.com, 2013), which showed that the reason why a large number of customs have purchased luxury merchandise in UK. There were 44 percent of female interviewees and 48 percent of male interviewees bought high-end goods due to the good quality. In addition, 31 percent of men and 18 percent of women consider the sophisticated technique

The author who inspired the topic of this thesis is Dana Thomas. As a fashion writer, Dana Thomas, has analyzed the changes in luxury fashion business. Thomas has been writing about fashion for the past twenty-five years in various journals such as Newsweek, The New York Times Magazine, New Yorker, Harper’s Bazaar, Vogue, Financial Times, and more. Dana Thomas’ two books, Deluxe and Gods and Kings, are the inspiration for this thesis. Deluxe: How Luxury Lost Its Lustre goes into great detail the secrets of the leading luxury industry brands, namely Prada, Gucci and Burberry, to showcase the “New Luxury” of today and how “luxury lost its luster” by featuring the manufacturing and logistical processes. Thomas exposes that many luxury brands use the same Asian factories that mass-market retailers employ, which raises questions concerning quality and craftsmanship for luxury brands.

Luxury fashion items can be acquired via several different avenues, as well as at several different price points in today’s market. Previously, the only options consumers had for the acquisition of luxury fashion goods was to purchase directly from the retail store; however, now there are an enormous amount of resources for consumers to opt for a used product at a much lower price by shopping on websites like eBay, or by purchasing from the growing amount of high-end consignment stores. Another option that luxury fashion consumers can easily utilize is to buy the item new and at a cheaper price by shopping at outlet stores or discount department stores like Nordstrom Rack and T.J. Maxx. Finally, these consumers have the option to borrow. Websites like BagBorrowOrSteal.com have created hugely profitable businesses by making the latest luxury accessory available to be rented at a cost that is a fraction of what the item would cost if purchased new from the retailer. These options have granted a much larger array of people the opportunity to experience aspects of the luxury lifestyle and the luxury image than ever before.

In the luxury goods industry, the rapid development has brought the market more brands and the latest design products. Industry matures has caused the accelerated development of a wide range of luxury goods (Chiari, 2009). However, one thing was constant, no matter how much increased production costs, the large luxury brand of origin will not be transfer. Long cultural history is an integral part of the luxury brand, and the origin of products have also brought a certain cultural value for luxury goods (Heine, 2012).Especially for Asian consumers, it seems that in the far west, craft superb tailoring and rich cultural history of the western area are the pursue of Chinese consumers (Sombart, 2001).Louis Vuitton 's president has said that (2013), “when customers buy our products, they expect Western quality. The mystery of the origin of our brand is closely linked with our brand”. Although with the close of trade, many luxury goods in the production and sales process will cooperation with other country’s companies, the final product definitely launch in the country of origin. Gucci is a legendary brand in Florence (Italy), and it will also strictly control the production done in Tuscany (Italy), to ensure pure and high-quality products (Gucci, 2015). Therefore, a regional feature has brought an intangible value and more local cultural characteristics to the luxury goods.

At the apex of the market was haute couture with it very high-end “custom” product offering that catered to the extremely wealthy. Luxury goods manufacturers believed diffusion brand’s lower profit margins were offset by the opportunity for increased sales volume and the growing size of the accessible luxury market and protected margins on such products by sourcing production to low-wage countries. Eye-catching utilization of their products by prominent figures in society leads to increasing demands for luxury good items and it is a growing industry with the global luxury goods market growing 9% per year. These consumers buy their products for satisfaction and to boost their self-esteem rather than for ease or comfort. All these components blend in the context of a successful business of the luxury goods.

This behavior brings competitive advantages to the European luxury brands. Moreover, customers in different countries have different purchase behaviors. For instance, some countries’ customers are willing to move away from common recognized brand, because they want to purchase more exclusive products. Furthermore, because of the increasing speed of globalization, people are more likely willing to travel between different countries. These travelers will buy luxury good during their trips. In fact, Chinese tourists contributed over one third of sales in Europe. The luxury goods industry should notice to adjust the actual demand between local people and tourists in Europe

According to a study conducted by Brain & Company, the number of luxury consumers has increased dramatically from 90 million to 330 million over the past 20 years(Arpizio, no date). Since Roman Times, people have been using luxury items and they have become more prestigious and valuable over time than they actually are due to their unique and different marketing and advertisements. The extraordinary marketing methods of selling luxury brands include making the products scarce, touching consumers’emotions, using different kinds of advertising medium, having celebrities endorse their products, employing famous designers, and etc. Although those are all unique advertising strategies of luxury brands which are different from regular brands, the

Maintenance of the brand image is always the fore most important factor for the luxury brands in order to sustain in the market. is very critical. Therefore, of all the criteria mentioned above, we have determined the brand image is the most important criterion on which we will base our recommendation.

Luxury is very selective and exclusive which there is almost the only brand in its product category. The sense of being sophisticated and having a good taste are based on this definition. The unique attribute of each product category belongs to one brand or it is called “the icon”. Only one brand specializes in one product category, for example, Brioni for men’s suits, Hermès for leather bags, Valentino for women‟s dress, and Guerlain for cosmetics.

Brand consultant and strategist Harish Bijoor of Harish Bijoor Consults loftily terms it "nichevertise vs massvertise". According to him the luxury brands are not for mass consumption and shouldn 't be mass advertised. The social circuit gives them a fresh channel to reach out to their target audience without any noise. "The socialite model of marketing targets the guest lists minus the hard sell," he says.

Introducing a new product or service into a foreign market is a significant business achievement. As a matter of fact, there are a few things that companies have to face when it comes to globalization. This essay will deal with luxury products, and more particularly with high-end jewellery from the French brand Cartier. These products will be launched within the Chinese market, as it is close to become the largest luxury market in the world. In order to make this project as successful as possible, this essay will be divided into two parts. On the one hand, we will be analysing the marketing environment of the Chinese market by identifying major market opportunities. Also, the selection of a suitable target market for

In general, the main target of luxury now is young working-women (Bothra 2013) or a person who was born on 1980s - 2000s, called Y generation. Due to this group of consumer are the highest potential to buy a luxury product and they focus on product 's social value more than function value because they believed that luxury brand is a symbol that represent the social status (Tovikkai and Jirawattannukool 2010; Tan et al. 2013)

Moreover, when it comes to customers, the standard of living and consumption are still growing, demand for luxury goods is growing as well. Analysis of the demand for luxury goods in the crisis of 2008-2009, indicates that the demand for luxury goods not fell, and even

The contradictions between the luxury goods nature and consumption features have become increasingly striking (Richins, 1994). To begin with, durable luxury goods with excellent quality tend to place an emphasis on physical purposes rather than cultural consumption. The idea of buying new products again has arisen even when product properties have not been completely consumed. Therefore, the question is how to enjoy a diverse set of luxury goods in a short period of time? And then, luxury goods are apt to be experienced by a small group of consumers who are in possession of a solid economic foundation. However, an increasing number of individual have shown interest in such consumption of luxury goods. Thus, it is necessary to ponder over the issue of how to enable the cash-strapped consumers to

It clearly says that affordability, quality, availability, celebrity, self-satisfaction, image and social status are the key drivers to the migration of consumers to Luxury brands from value middle tier branded goods. It confirms the view that brand perception and purchase value is, apart from socially oriented motives of buying to impress others also affected by financial, functional, and individual aspects. It would seem that the dimensions presented in this paper are appropriate variables for segmenting the market for branded items.