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The Nature Of Luxury II
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The Nature Of Luxury II

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The principles of marketing to hi-end consumers and trends in luxury.

The principles of marketing to hi-end consumers and trends in luxury.

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  • Egalitarianism (derived from the French word égal , meaning equal ) or Equalism is a political doctrine that holds that all people should be treated as equals and have the same political, economic, social, and civil rights.
  • Luxe E.t.c. advises luxury companies such as Louis Vuitton, Christian Dior, Gucci, Piaget .

The Nature Of Luxury II The Nature Of Luxury II Presentation Transcript

  • Viacheslav Derzhaev, June 2009 II
  • From materialistic status symbols to experiential lifestyle
  • From materialistic status symbols to experiential lifestyle
    • There is no such thing as a luxury product. There is a product with a luxury story attached to it.
    • " It was luxury defined based upon the thing itself. The way we define luxury today is not about the attributes and features; it is about how one experiences them. "
    • (Pam Danziger , president of Unity Marketing)
    • "Old Luxury traditionally grounded in Europe. A Swiss watch. High quality. A traditional definition of prestige. New Luxury is evoking a 'West Coast' sensibility, a more casual attitude, a sense of Zen and spirit and those types of things."
    • (Scott Keogh, Audi of America's chief marketing officer)
    • There are two more points there that deserve attention. First and foremost, Scott Keogh adds a geographical dimension to luxury. Second, he describes New Luxury as being more emotional and relaxed.
  • From frills to personal enjoyment
    • Luxury is not so demanding anymore. You don't need to follow numerous rules, to meet the requirements, to fit the situation. You can relax and enjoy.
    • "The way I define luxury isn't by fabric or fiber or the amount of gold bits hanging from it. That's an old definition. For me, luxury is about pleasing yourself, not dressing for other people."
    • (Marc Jacobs, art director of Louis Vuitton)
  • From frills to personal enjoyment: Gastropubs
  • From frills to personal enjoyment: Gastropubs
    • Gastropub revolution is the trend of serving upscale cuisine in the relaxed environs that has started well before economical meltdown.
    • "Top chefs are serving it up simple and cheap. In this economy, it's all about the food."
    • (Ginanne Brownell, Newsweek)
    • "We don't make lobster or truffles [anymore] ; we make a really good minestrone."
    • ( Elizabeth McLaury , restaurant keeper )
    • "Sometimes lots of frills make you suspicious that the food is not going to be so great."
    • (John Lake, director of corporate finance in Deloitte)
    • "We've had captains of industry in here, jackets off, tucking into food and I think they probably enjoyed it more than they would have in a really tight-ass restaurant."
    • ( Peter Prescott , restaurant keeper )
  • From frills to personal enjoyment: Simple pleasures
  • From frills to personal enjoyment: Simple pleasures
    • "Rare, essential, desired… it is not about swift cars, gold watches, boxes of champagne and fragrances that are now sold far and wild; it is about elementary living conditions."
    • ( Hans Magnus Enzensberger , writer and publicist)
    • Time
    • Attention
    • Living space
    • Peace of mind
    • Healthy environment
    • Security
    • "There is only one true luxury, and that is the luxury of human relations."
    • ( Antoine de Saint-Exupéry, writer and aviator)
  • From demonstration of wealth to demonstration of taste
    • "It used to be that upper-class style was based on the display of wealth: the mansions of Newport, Rhode Island; the lines of Cadillacs; the power to import large chunks of Italian palazzi and install them on a hilltop. Now upper-class style has changed: it is based on the display of sufficient taste to know what the best is and to choose it – whether the best coffee, the best parka, the best food, the best building materials..."
    • ( James Bradford DeLong , professor of economics at the University of California and a research associate of the National Bureau of Economic Research)
  • From demonstration of wealth to demonstration of taste: Small couture houses
  • From demonstration of wealth to demonstration of taste: Small couture houses
    • Second string couturiers are now on the rise, as luxury consumers opt for individuality and self-expression rather than uniform status symbols.
    • "A few hours after Chanel staged a winter-white spectacular featuring 40 top models and hundreds of guests, a little-known dressmaker named Dominique Sirop crammed 50 or 60 journalists and photographers into his tiny atelier, where three unknown models posed in turns on rotating pedestal inelegantly draped with black cloth. There was no trace of grandeur in the air — the carpet was worn in patches, no waiters passed flutes of champagne — yet each of the looks that Sirop sent out made as much of an impression as the marvels that Karl Lagerfeld had unleashed at Chanel. "
    • (Sameer Reddy, Newsweek)
    • "They're the future. In addition to the lower price points, many of these emerging talents offer a fresh new take, and they're trying a lot harder than some of the older designers."
    • (Becca Cason Thrash, Houston socialite)
  • From demonstration of wealth to demonstration of taste: BoBos In Paradise
  • From demonstration of wealth to demonstration of taste: BoBos In Paradise
    • David Brooks, political and social analyst, has written a brilliant book about modern upper-class taste and style in America, "Bobos In Paradise". Brooks believes that this new sense of taste and style is the result of the collision of the "bohemian" culture of authenticity with the "bourgeois" culture of sober achievement , and that the "BoBos" are the first group that have found a way to be both authentic, spontaneous, and creative on the one hand and disciplined, industrious, and prosperous on the other.
    • "I returned to an America in which the bohemian and the bourgeois were all mixed up. It was now impossible to tell an espresso-sipping artist from a cappuccino-gulping banker. "
    • (David Brooks, political and social analyst)
  • From demonstration of wealth to demonstration of taste: BoBos In Paradise
    • BoBo's code of financial correctness
    • Only vulgarians spend lavish amounts of money on luxuries. Cultivated people restrict their lavish spending to necessities . $30,000 bathroom, $50,000 kitchen equipment, $150,000 SUV, etc. Something that you and your family use everyday.
    • It is perfectly acceptable to spend lots of money on anything that is of "professional quality" , even if it has nothing to do with your profession. Like industrial strength toasting system, professional ski equipment, gourmet gardening tools, etc.
    • You must practice the perfectionism of small things . Right pasta drainer, distinctive doorknob , ingeniously designed cork-screws, Swiss-made KWC faucet, etc. No gaudy possessions that make extravagant statements. BoBos can spend hours looking through catalogues or internet to find rare gadgets not discovered by masses.
    • The educated elites are expected to practice one-downmanship . They reject foie gras, caviar and truffles and choose things that belong to less privileged sphere , go for the same items as proletariat: chicken legs (but free range chicken), potatoes (but distinctive miniature from northern France), lettuce (but flimsy cognoscenti lettuces). It allows BoBos to be egalitarian and pretentious at the same time.
  • Sustainable luxury
    • " Sustainability" and "luxury" are no longer mutually exclusive. Louis Vuitton’s activities in environmental protection, Loro Piana’s million-dollar investments in natural reserves for endangered animal species, Cartier’s foundation for the promotion of arts and young artists, PPR’s Foundation for Women’s Rights & Dignity, Sustainable Luxury Conference (Delhi, March 2009) and First Sustainable Luxury Fair (Paris, May 2009) show that luxury is now concerned about giving back to the society, which is vital for the sector of the economy that is known for ability to influence consumer's minds, tastes and values.
    • "The global crisis of confidence in governmental, financial, and other institutions will drive luxury consumers to demand that luxury brands serve not just them but society as a whole . "
    • (from Luxury Institute's report )
  • Sustainable luxury
    • "T he sector in general has woken up to the fact that social responsibility is not just a wave of passing trend that would dissipate when the placard-carrying activists get weary and move on to the next cause. Those who jumped on the bandwagon without a real plan apart from a perceived PR opportunity have been caught up in an evolution that will continue changing consumer perceptions and ideologies. They have finally woken up to the reality that the ‘greens’ have to be taken seriously and that this generation of consumers will no longer be fooled by advertising messages screaming ‘greenness’ that is unsupported in belief and practice. "
    • (Uche Okonkwo, executive director of Luxe E.t.c.)
    • "Humankind is beginning to understand that heritage is fragile, and luxury business does not escape that logic ."
    • ( Fran c ois-Henri Pinault, CEO of luxury group PPR )
  • Sustainable luxury: Stella McCartney
  • Sustainable luxury: Stella McCartney
    • "Why shouldn't it be possible to adopt a more natural, organic lifestyle without foregoing luxury?"
    • (Stella McCartney, fashion designer)
    • " Stella McCartney, a model brand for the current generation of socially-aware and socially-responsible consumer market including the group of the world’s wealthy is a real reference of the wave of consciousness of our world today. A brand created with the unwavering conviction that a luxury brand can be founded on the philosophy of sustainability. In less than a decade, Stella McCartney, a vegetarian and strong believer in animal rights, has developed a luxury fashion, accessories and skincare brand based on true and admirable principles that have set precedence to the way luxury can be positioned in the 21st century. "  
    • (Uche Okonkwo, executive director of Luxe E.t.c.)
  • e-Luxury
    • " Internet will remain a key channel of communications, retail and brand reinforcement for luxury brands. In the current situation, i nternet will even play an elevated role on the dual brand and client levels. "
    • (Uche Okonkwo, executive director of Luxe E.t.c.)
    • " The web is all about convenience. Luxury is about the experience and the discernment that goes with it. Luxury brands need to combine the two. "
    • ( Tom Savigar, trend forecasting consultancy The Future Laboratory )
    • Ledbury Research, a consultancy specialising in high-end consumer behaviour , reports that nowadays luxury consumer spends at least five hours a week online, therefore the place of internet in luxury world is justified.
  • e-Luxury: Viktor&Rolf
  • e-Luxury: Viktor&Rolf
    • This season Viktor Horsting & Rolf Snoeren decided not to participate in Paris Fashion Week. They have broken the tradition of high fashion and moved their runway to the virtual world : their new collection was premiered via online-only fashion show . T his enabled the designers to do a number of things live shows don’t, like use only one model , Shalom Harlow , who magically appears on the runway three times at once. And we can see detail shots of the shoes and clothes in a way one couldn’t even from the front row of a live show.
    • "It is a take on what a fashion show might be in the future . "
    • ( Viktor Horsting & Rolf Snoeren , fashion designers)
    • " If the power of digital technology makes obsolete the practice of banning journalists, what remains of the old system but an empty seat? I can’t say yet whether I will write about Mr. Armani’s clothes by viewing them online. Frankly, I would be much more excited if he unburdened himself of the whole system, closed down the shows, stopped with the backstage stroking sessions, and went directly over the Internet to the public. "
    • (Cathy Horyn, New York Times fashion critic)
  • Back to basics
    • "Today, more than ever, people want a return to genuine values such as timelessness, sincerity and exemplary standards . "
    • ( Fran c ois-Henri Pinault, CEO of luxury group PPR )
  • Back to basics: Old masters
  • Back to basics: Old masters
    • While sales of contemporary art have tanked, old masters are going strong.
    • "Old Masters are better than buying gold nuggets if you’re looking for something that will retain value."
    • (Clovis Whitfield, Whitfield Fine Art Gallery)
    • "These times, like many downturns before, allow artists and dealers to be more creative, and collectors to focus on the fundamentals – like originality and timelessness – instead of on the buzz."
    • (Alexandra A. Seno, Newsweek)
  • Back to basics: Reinvented classics
  • Back to basics: Reinvented classics
    • Nowadays many companies explore their past and dig into the brand history to reinvent and reissue their old model sets and stick to classic, discreet, pure luxury.
    • "The trend in design is understated, pure, classic simplicity and a return to roots . "
    • ( Wei Koh, editor of the Revolution Magazine )
  • Back to basics: Chanel
  • Back to basics: Chanel
    • At Paris Fashion Week Karl Lagerfeld from Chanel presented an almost entirely white collection of dresses and suits in a '60s silhouette . All the advertising campaign of Chanel for Spring-Summer '09 features models elegantly dressed in black-and-white. The price is still high, but so is the quality, and any brash, in-your-face appeal has been abandoned for a measure of chic discretion .
  • Back to basics: Louis Vuitton
  • Back to basics: Louis Vuitton
    • Louis Vuitton was always known as a producer of ingeniously designed, elegant and practical luggage. Over the time this reputation was overtaken by the power of the brand which is now associated with a wide range of luxury products. With atmospheric 'Core Values' advertizing campaign Louis Vuitton is returning to brand's core competency, stressing its authenticity and brand heritage.
    • Advertisement featuring Sean Connery at Bahamas Islands says "There are some journeys that turn into legends". And the line below states that Sir Sean Connery and Louis Vuitton are proud to support The Climate Project.
    • "The God is in the detail."
    • (Gustave Flaubert, writer)
  • Credits
    • Viacheslav Derzhaev
    • [email_address]
    • Tel.: + 7 (495) 9692030, Fax: + 7 (495) 9692025
    • Business Center Red Rose, 2nd floor
    • 11, bld 2-5, Timur Frunze Str.
    • Moscow 119992
    • Russian Federation