The new dimension of luxury

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The boundaries between distinctive and affordable luxury have become flowing. It is at this transition, very difficult to define and, what is luxury and what is premium, apart from the super-luxury, such as a yacht. The term luxury has turned meaningless a little, because there is super-luxury, near luxury, affordable-luxury, ultra-premium, super premium and premium. For luxury brands, therefore, it has not become easier to position themselves clearly and distinguish them from competitors.
Customers are increasingly looking for brands that serve as part of a weave pattern for the construction of the self-serving ego, and this will be used as a form of framework for the development of their own personal lifestyles.
Brands, particularly luxury brands, are setting more distinctive features, during the construction of a possible self-image, the set of values, as modules for consumers, to express their personality.
The luxury brand today has to deliver content, to succeed sufficently, according to the four dimensions of „quality of experience“, „involvement“, „authenticity“, and „sustainability“. "
Increasingly important is the delivery of customer-relevant authentic brand stories, and the transformation of these into emotional and sensory learnings, experiences and feelings, that is, to create an emotional home.
Also, as a luxury brand manager you have to keep an eye, or better two ,on the subject of sustainability. The drivers, the inherent code for managing a luxury brand in the future, are still, the evolution of the substance, the ceaseless search for excellence,and the relentless pursuit of perfection.
Luxury brands are increasingly the platform and framework, similar to a stage of life, with relevance for their followers, a well garnished source of fiction and spirituality for their believers, and a weaving pattern for the evolution of their self-egos and personal lifestyles .


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The new dimension of luxury

  1. 1. The new dimensions of luxury Luxury is mass, luxury is price, luxury is no longer what it once has been. What is luxury? What distinguishes it now and in the future? We have met a specialist and asked him, what can be done and how luxury is defined. No later than Dr. Zetsche said the Maybach project will not be pursued, questions were raised about the failure of the luxury brand. One thought about the product, its design and, above all, on the strategy of those responsible. How to get the group of rich, super-rich and mega-riches? Is it not enough to present the product to the hot spots of the millionaires? What is the role of price, design and the distribution channel? What motivates the target group, what doesn´t? What tools are appropriate, which are not. Exclusive Life asked Michael Kratz, a specialist in neuro integrated marketing communications, and interviewed him on the subjects of luxury marketing, luxury and its values, and how to succeed as a luxury brand in a world of increasing numbers of HNWI´s, UHNWI´s, and privileged ones. Mr. Kratz, the concept of luxury is now apparently associated with different values than before, or is there a new luxury? Michael Kratz: "Well, there is a massification of luxury brands versus a luxification of the the mass-market brands."
  2. 2. That sounds complicated. What does it mean? MK: "The boundaries between distinctive and affordable luxury have become flowing. It is at this transition, very difficult to define and, what is luxury and what is premium, apart from the super-luxury, such as a yacht. The term luxury has turned meaningless a little, because there is super-luxury, near luxury, affordable-luxury, ultra-premium, super premium and premium. For luxury brands, therefore, it has not become easier to position themselves clearly and distinguish them from competitors. " What should a luxury brand do to clearly position their products as luxury ? MK. "Ideally, to be clear about who you are and where you want to go as a pure luxury brand, and here I am talking about high-end, l ´art pour l´art, pure art, unique creation within a non-scalable market , or as a premium brand, however, exclusively paired with high quality and service, and a certain market share. " Give us an example. MK: "Take the watch market. Patek Phillipe and Rolex. The boundaries here are already flowing and a bilateral approach exists here. „Affordable“ Pattek Phillipe watches, but also manufactured models in the range of 250,000 euros and above, Grand Complications for example, as a driver for exclusivity or brand uniqueness. This price region is not covered by Rolex and they will not do it, because they are super premium affordable luxury, not, let´s say connaisseur luxury, in the sense of manufactured masterpieces. Is it therefore crucial for luxury and exclusivity to be related to price? MK. "That would be against the background of the now occurring groups of consumers of the Generation Y, short-jumping and not goal-effective,especially in the wake of asia and other markets. Customers are increasingly looking for brands that serve as part of a weave pattern for the construction of the self-serving ego, and this will be used as a form of framework for the development of their own personal lifestyles. "
  3. 3. Do you mean that customers want to find a kind of brand spirituality? MK: "Yes, that's quite an important way today. Brands, particularly luxury brands, are setting more distinctive features, during the construction of a possible self- image, the set of values, are modules for consumers, to express their personality." Do luxury brands now rather need brand gurus than brand managers? M.K. (laughs). "No, to be relevant for the customer as a reliable, consistent source for the best in lifestyle content. The luxury brand has to deliver content, to succeed sufficently, according to the four dimensions of „quality of experience“, „involvement“, „authenticity“, and „sustainability“. " Tell us more ? MK: "Increasingly important is the delivery of customer-relevant authentic brand stories, and the transformation of these into emotional and sensory learnings, experiences and feelings, that is, creating an emotional home. This does not mean however that as in traditional brands, only, keeping the smoldering ashes on hold, but light the fire again and again with new stories, that is a must. Also, as a luxury brand manager you have to keep an eye, or better two ,on the subject of sustainability. The drivers, the inherent code for managing a luxury brand in the future, are still, the evolution of the substance, the ceaseless search for excellence, and the relentless pursuit of perfection. "What is the role of Social Media? MK: "Social media is another channel of communication for brand communication with high binding and interaction quality, and of course, interested group efficiency. It certainly also contributes to the quality of the services offered , but in communication, to yield at least the profits of the brand-loyal customers and community, it´s not the only weapon to decide the war for your brand. "
  4. 4. Finally. Can all this be summarized in three sentences? MK: "Let me answer it with a quote from film director Martin Scorsese." Cinema is a matter of what's in the frame and what's out. "In other words, luxury brands are increasingly the platform and framework, similar to a stage of life, brand relevance for your followers, a well garnished source of fiction and spirituality for your believers, and a weaving pattern for the evolution of their self-egos and personal lifestyles . " The interview was conducted by Ralf Bernert Michael Kratz is a freelance consultant for kitzbrain emotional logics. A brand agency for integrated neuro-marketing communications. More about the agency you will find also on https://www.facebook.com/pages/kitzbrain-emotional-logics/192947284090516 http://pinterest.com/emotionallogics/boards/ http://de.slideshare.net/MichaelKratz/7-seconds-kitzbrain-emotionallogics

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