This report examines changing perceptions of luxury and how luxury apparel brands are adapting. It finds that while quality and brand perception still influence value, loyalty alone is no longer enough - consumers now want brands that offer deeper luxury through environmental and social responsibility. Data analysis shows environmental focus strongly impacts perceived value. As needs evolve beyond materialism, consumers seek self-actualization through brands that improve society and the planet. Luxury apparel brands must recognize this shift and integrate sustainability into their products and services to remain relevant and drive future growth.

1. L U X U R Y T O D A Y

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Luxury Today
This report provides a logical vision and validation for a deep and sustainable luxury industry. In
today’s context, true luxury brands are those which provide supreme positive offerings to
consumers. These brands recognize their customers as having the means and enthusiasm to
respect both people and the planet. This phenomenon can be called as ‘a deeper luxury’. This
new breed of luxury brands has both the prospect and the liability to encourage sustainable
consumption. The definition of luxury and the way it is perceived by others is changing. A lot of
successful citizens now want their brands to represent their concerns and aspirations for an
improved planet. This occurrence is true not only in western luxury society, but also gradually
becoming more evident amongst the affluent social classes of developing economies.
As part of the research, variables that influence ‘value perception’ were identified and
categorized into four groups, viz. intrinsic factors, extrinsic factors, ethical factors and individual
factors. The data collected was analyzed using frequency analysis, multiple linear regression and
factor analysis.
The research findings show a drift in the value perception of consumers of luxury apparel retail.
Though factors like quality and brand perception continued to show a positive trend to perceived
value, loyalty towards the brand was seen to be a hindrance in adding value. Also, increased
environmental focus of a luxury apparel brand had a strong influence on the consumers’
perception of value. These findings reaffirm the consumer shift towards ‘self actualization’ in
Maslow’s pyramid in the hierarchy of needs. That is, self actualization through the need of ‘a
deeper luxury’.
What is luxury?
“Luxury is something you could do without but that you don’t want to do without” - Coco Chanel
The word luxury originates from the Latin word ‘luxus’ which means ‘abundance’. It also carries
nuances of a ‘contradiction from the basic’. According to Philippe Perrot, (Fashioning the

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Bourgeoisie) luxury represents ‘the surplus produced by a prosperous society’ and it is a symbol
of an inherent differentiation. Economist Werner Sombart (Liebe, Luxus und Kapitalis mus)
claimed that luxury represents ‘the expense of something that is beyond necessity’. These
concepts apply to all ages, societies and cultural regions and can have implicit connotations to
the consumers of luxury goods.
Luxury has been perceived differently in different periods of time. In the early 17th
century,
luxury was used to display class, authority and power. For example, the extraordinary and
prolific bodice made for Queen Elizabeth was considered as the epitome of luxury. The 18th
century flaunted an era of economic and financial surplus which led to a movement of
flamboyant clothing worn by male and female members of the society in explicitly exaggerated
style. Sociologist Thorstein Veblen (The Theory of the Leisure Class) claimed that in a capitalist
society, ‘what we wear is always clearly representative of one’s monetary status’. These words
suggest a close connection between luxury and monetary value. Cost augmented the prestige of
the brand’s implicit value. For upper class ladies of the 19th
Century, clothing was the easiest
means of conveying advantage, or of displaying one’s position, possessions and supremacy.
Before the 20th
century, luxury was considered by what was viewed to be abundant, unique,
expensive or indicative of prosperity. Today, luxury is no longer limited to obvious consumption
or lavishness. Functional sophistication, comfort, individuality and even sanctified beauty are
different faces of luxury. It has begun to symbolize something delicate and intellectual and the
use of expensive material is no longer considered as the only factor that can define the ingredient
of luxury. This new form of differentiation gave birth to original and unique concept creations.
We are heading towards a more modest and understated luxury. In today’s free society, luxury is
something that satisfies our spirit, despite of the times or circumstances. Luxury represents the
positive aspiration that leads the way for fashion. The desire to convey supremacy by wealth,
power and status can be done by emphasizing unique features of our personality. Clothing has

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been the most convenient tool for communicating this desire in the physical form and will
possibly continue in the coming era.
The changing trends of consumer behavior pose a challenge to the way that luxury apparel
brands need to look into its products and services. Trends evolve faster than ever before and it is
the luxury segment that sets the trend for the rest of the industry.
A new breed of consumer is demanding brands that are both luxurious and sustainable in order to
justify their expenditure. Consumer behavior is of utmost importance for any leading brand while
analyzing the next step to future growth. We will be studying the leading luxury brands and their
offerings in the apparel line and analyze to what extent these changes have impacted consumer
value perception in this industry. Analysis of these emerging trends will act as a catalyst to the
future growth of these luxury apparel brands.
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