Understanding Luxury: Key Concepts and Characteristics

Introduction to Luxury

• Luxury is subjective and relative; it differs from person to person.
• Defined by the extraordinary and exceptional.
• Luxury can be elusive: is it about quality, exclusivity, prestige?
• Sociological aspect: luxury as a demonstration of power.
• Economic definition: high price above functional value.
• Influenced by customer dreams and evolves with time.

Key Characteristics of Luxury

1. Quality

   • Long-lasting, design, aesthetic appeal, craftsmanship.
   • High standards in raw material selection and craftsmanship.

2. Scarcity

   • Not always naturally scarce; includes limited editions and collections.
   • Example: special blends in noble packaging materials.

3. Experiential Rewards

   • Loaded with positive emotions and strong brand associations.
   • Packaging and branding evoke emotions (e.g., Tiffany's blue box).

4. Brand Signature

   • Symbol of distinction and status.
   • Includes patterns, colors, designs unique to the brand.

5. Control Channels

   • Essential for lowering counterfeiting risks and expressing brand universe.
   • Allows managing a direct link with customers.

6. Personalized Services

   • Rich experiences and detailed product explanations.
   • Highlights prestige and luxuriousness beyond mere price.

7. Price

   • Not solely based on functional performance.
   • For developing brands, a correlation with performance may initially exist.

Conclusion

• The 7 characteristics help measure the luxuriousness of an offering.
• Luxury remains a complex concept with diverse interpretations.
• Represents both a business sector and a distinct business model.
• Stay informed for further insights on luxury management principles.