DNA of luxury brands


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DNA of luxury brands

  1. 1. The DNA of Luxury Brands By Sonal Agrawal www.theluxefactor.blogspot.com
  2. 2. Luxury, as a concept is very subjective. What is luxury for one person could be a habit for the other. Few decades ago, Luxury could probably said to have been ‘ something that you don’t need at all… but is so exceptional that you must indulge in it ’ Today however, definitions have changed have luxury seems to be more like ‘ A necessity which only few can indulge in ’ What is Luxury? www.theluxefactor.blogspot.com
  3. 3. Structure Birth of Luxury Maintenance Tools Maintenance Tools Luxury Brand Behaviours <ul><li>Retail </li></ul><ul><li>Communication </li></ul>www.theluxefactor.blogspot.com
  4. 4. What gives birth to Luxury? 1) Heritage The legacy and history behind the brand, which gives the brand a unique culture that is reflected in all its activities www.theluxefactor.blogspot.com
  5. 5. Salvatore Ferragamo www.theluxefactor.blogspot.com
  6. 6. Hermes Pincess of Monacco: Grace Kelly 100 yrs old technique. Craftsman’s badge no. embossed www.theluxefactor.blogspot.com
  7. 7. 2) Innovation Originality and being the first of its kind. www.theluxefactor.blogspot.com
  8. 8. iPad Al Burj Started with innovation, now plays on heritage Contains live cells, to counter ageing… extracts of gold, caviar, platinum www.theluxefactor.blogspot.com
  9. 9. Ducati (using heritage and innovation) www.theluxefactor.blogspot.com
  10. 10. 3) Unattainable Rare, Exotic, hard to find, harder to attain… www.theluxefactor.blogspot.com
  11. 11. www.theluxefactor.blogspot.com Unattainable Natural Scarcity Emotional Scarcity Brand induced scarcity Unattainable pricing
  12. 12. Mortlach 70 year old scotch - $ 15000 www.theluxefactor.blogspot.com Natural Scarcity
  13. 13. Freedom Peace of mind Youth Sleep Time www.theluxefactor.blogspot.com Emotional Scarcity
  14. 14. Limited Edition by Jean Paul Gaultier www.theluxefactor.blogspot.com Brand induced scarcity
  15. 15. High Costs Low Volume High Price www.theluxefactor.blogspot.com Unattainable Pricing
  16. 16. 4) Bespoke Personalized… ‘ made to measure ’ www.theluxefactor.blogspot.com
  17. 17. All designer brands started with their most exquisite and haute couture ‘ made to measure ’ lines… Today, ready-to-wear has become common for most luxury fashion brands and has lead to massification of luxury… But the true essence of luxury still lies in the customer’s ability to get something made ‘bespoke’ by these brands! In the western world, ‘Bespoke’ is the highest form of luxury… But Indians are too aware of the concept… unless offered by an established brand ! www.theluxefactor.blogspot.com
  18. 18. Therefore, The four key factors that give birth to luxury THE VARIABLES These elements can be mutually exclusive, or combined together to give birth to a luxury brand www.theluxefactor.blogspot.com Heritage Bespoke Innovation Unattainable
  19. 19. But apart from the variables, there are some other elements that are core to any luxury brand… www.theluxefactor.blogspot.com
  20. 20. Quality Timelessness Pampering Way of Life Emotional Involvement Pride of Ownership Sense of belonging Exclusivity THE CONSTANTS THE CONSTANTS www.theluxefactor.blogspot.com Heritage Innovation Unattainable Bespoke THE VARIABLES
  21. 21. 1) Quality Luxury is an assurance of high quality “ The opposite of Luxury is not Poverty but Vulgarity” – Coco Chanel The Constants – the Maintenance tools: www.theluxefactor.blogspot.com
  22. 22. 2) Timelessness A luxury product cannot and should not follow fashion waves… it is something that remains just as special in the future as it was in the past… www.theluxefactor.blogspot.com
  23. 23. 3) Pampering An overwhelming, lavish experience www.theluxefactor.blogspot.com
  24. 24. 4) Way of Life Luxury is addictive… it’s not just a product you buy or something you experience, it becomes the way you want to live life… “ Vacation used to be a luxury, however, in today's world, it has become a necessity.” -- Anonymous www.theluxefactor.blogspot.com
  25. 25. 5) Emotional Involvement Luxury cannot be bought on impulse! www.theluxefactor.blogspot.com
  26. 26. 6) Pride of Ownership Experiencing luxury brings about a change in the perception of one’s self worth… www.theluxefactor.blogspot.com
  27. 27. 7) Exclusivity The tougher it is to obtain, the more precious it is! “ When it comes to luxury, less is more” -- Anonymous www.theluxefactor.blogspot.com
  28. 28. 8) Sense of Belonging Using a luxury product makes one feel like a part of a group of a certain selected few… www.theluxefactor.blogspot.com
  29. 29. In Sum Quality Timelessness Pampering Way of Life Emotional Involvement Pride of Ownership Sense of belonging Exclusivity THE CONSTANTS THE CONSTANTS The VARIABLES give birth to the brand but the CONSTANTS are the maintenance devices www.theluxefactor.blogspot.com Heritage Innovation Unattainable Bespoke THE VARIABLES
  30. 30. APART FROM THE VARIABLES AND THE CONSTANTS… There are also certain BRAND BEHAVIOURS specific to luxury brands www.theluxefactor.blogspot.com
  31. 31. Luxury Brand Behaviours The two key areas where Brand Behaviours manifest themselves: www.theluxefactor.blogspot.com Retail Communic-ation
  32. 32. Let’s look at how luxury retail operates… “ The retail space is the best advertisement for a Luxury brand” – Massimo Brandigi, Former CEO, Prada www.theluxefactor.blogspot.com
  33. 33. Key focus areas for luxury retail… <ul><li>Customer service </li></ul><ul><li>Windows display </li></ul><ul><li>Store Layout </li></ul><ul><li>Visual Merchandising </li></ul><ul><li>Fitting Rooms </li></ul><ul><li>Ambience </li></ul><ul><li>Lounging spaces </li></ul><ul><li>Washrooms </li></ul><ul><li>Atmosphere </li></ul><ul><li>Extras and give-aways </li></ul>Source: Research consucted by LM 2010, Polimoda University for Salvatore Ferragamo The best combination is to map each of these parameters with each of the CONSTANTS to ensure best retail behaviour! www.theluxefactor.blogspot.com
  34. 34. Hence, Quality Timelessness Pampering Way of Life Emotional Involvement Pride of Ownership Sense of belonging Exclusivity THE PRODUCT THE EXPERIENCE THE CONSTANTS THE CONSTANTS www.theluxefactor.blogspot.com Heritage Innovation Unattainable Bespoke THE VARIABLES
  35. 35. Communication Behaviours… www.theluxefactor.blogspot.com
  36. 36. “ In luxury, Less is more” Least possible exposure in the mass media… High exposure = high accessibility = not luxury!! www.theluxefactor.blogspot.com
  37. 37. Luxury brands always focus on their core business The current economic crisis was the 1 st time ever, that luxury brands were affected… reason being their shift of focus from their core product… www.theluxefactor.blogspot.com
  38. 38. The only profitable luxury brand in the crisis. Never moved away from the core – bags. The only fashion luxury brand that does not even have a line of perfumes www.theluxefactor.blogspot.com
  39. 39. Romancing the Product Highly Narcissist!! Luxury products’ communication focuses on the product and the craftsmanship… and NOT on the benefit to the consumer! The consumer benefit is to be experienced, only the product uniqueness is to be communicated! www.theluxefactor.blogspot.com
  40. 40. Ways of romancing the product… www.theluxefactor.blogspot.com
  41. 41. The Product needs to be presented in the best way possible… www.theluxefactor.blogspot.com
  42. 42. The Language used to describe the product and the craft… www.theluxefactor.blogspot.com
  43. 43. Romancing the product… and the skill / inspiration behind its production www.theluxefactor.blogspot.com
  44. 44. Romancing the consumption ritual www.theluxefactor.blogspot.com
  45. 45. Reassuringly Expensive! www.theluxefactor.blogspot.com
  46. 46. Suggesting the preciousness of the product… www.theluxefactor.blogspot.com
  47. 47. Hence, a Luxury brand never speaks about the end-benefit… It only glorifies the origin or creator, craftsmanship and the consumption rituals… www.theluxefactor.blogspot.com
  48. 48. Glorifying the Source… Exotic ingredients and their exotic sources must be glorified… www.theluxefactor.blogspot.com
  49. 49. Made from gold, silver, platinum and Caviar Cashmere from Mongolia French Wines Swiss watches Belgium Diamonds… www.theluxefactor.blogspot.com
  50. 50. Hence, Quality Timelessness Pampering Way of Life Emotional Involvement Pride of Ownership Sense of belonging Exclusivity THE PRODUCT THE EXPERIENCE THE CONSTANTS THE CONSTANTS Focus on retail Focus in communication www.theluxefactor.blogspot.com Heritage Innovation Unattainable Bespoke THE VARIABLES
  52. 52. Thank you! www.theluxefactor.blogspot.com