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Luxury today executive summary


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Luxury today executive summary

  1. 1. L U X U R Y T O D A Y
  2. 2. VALUE PERCEPTION: LUXURY APPAREL BRANDS2Luxury TodayThis report provides a logical vision and validation for a deep and sustainable luxury industry. Intoday’s context, true luxury brands are those which provide supreme positive offerings toconsumers. These brands recognize their customers as having the means and enthusiasm torespect both people and the planet. This phenomenon can be called as ‘a deeper luxury’. Thisnew breed of luxury brands has both the prospect and the liability to encourage sustainableconsumption. The definition of luxury and the way it is perceived by others is changing. A lot ofsuccessful citizens now want their brands to represent their concerns and aspirations for animproved planet. This occurrence is true not only in western luxury society, but also graduallybecoming more evident amongst the affluent social classes of developing economies.As part of the research, variables that influence ‘value perception’ were identified andcategorized into four groups, viz. intrinsic factors, extrinsic factors, ethical factors and individualfactors. The data collected was analyzed using frequency analysis, multiple linear regression andfactor 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 perceivedvalue, loyalty towards the brand was seen to be a hindrance in adding value. Also, increasedenvironmental 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’ inMaslow’s pyramid in the hierarchy of needs. That is, self actualization through the need of ‘adeeper luxury’.What is luxury?“Luxury is something you could do without but that you don’t want to do without” - Coco ChanelThe word luxury originates from the Latin word ‘luxus’ which means ‘abundance’. It also carriesnuances of a ‘contradiction from the basic’. According to Philippe Perrot, (Fashioning the
  3. 3. VALUE PERCEPTION: LUXURY APPAREL BRANDS3Bourgeoisie) luxury represents ‘the surplus produced by a prosperous society’ and it is a symbolof an inherent differentiation. Economist Werner Sombart (Liebe, Luxus und Kapitalis mus)claimed that luxury represents ‘the expense of something that is beyond necessity’. Theseconcepts apply to all ages, societies and cultural regions and can have implicit connotations tothe consumers of luxury goods.Luxury has been perceived differently in different periods of time. In the early 17thcentury,luxury was used to display class, authority and power. For example, the extraordinary andprolific bodice made for Queen Elizabeth was considered as the epitome of luxury. The 18thcentury flaunted an era of economic and financial surplus which led to a movement offlamboyant clothing worn by male and female members of the society in explicitly exaggeratedstyle. Sociologist Thorstein Veblen (The Theory of the Leisure Class) claimed that in a capitalistsociety, ‘what we wear is always clearly representative of one’s monetary status’. These wordssuggest a close connection between luxury and monetary value. Cost augmented the prestige ofthe brand’s implicit value. For upper class ladies of the 19thCentury, clothing was the easiestmeans of conveying advantage, or of displaying one’s position, possessions and supremacy.Before the 20thcentury, luxury was considered by what was viewed to be abundant, unique,expensive or indicative of prosperity. Today, luxury is no longer limited to obvious consumptionor lavishness. Functional sophistication, comfort, individuality and even sanctified beauty aredifferent faces of luxury. It has begun to symbolize something delicate and intellectual and theuse of expensive material is no longer considered as the only factor that can define the ingredientof 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 issomething that satisfies our spirit, despite of the times or circumstances. Luxury represents thepositive 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
  4. 4. VALUE PERCEPTION: LUXURY APPAREL BRANDS4been the most convenient tool for communicating this desire in the physical form and willpossibly continue in the coming era.The changing trends of consumer behavior pose a challenge to the way that luxury apparelbrands need to look into its products and services. Trends evolve faster than ever before and it isthe 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 tojustify their expenditure. Consumer behavior is of utmost importance for any leading brand whileanalyzing the next step to future growth. We will be studying the leading luxury brands and theirofferings in the apparel line and analyze to what extent these changes have impacted consumervalue perception in this industry. Analysis of these emerging trends will act as a catalyst to thefuture growth of these luxury apparel brands.Heartfelt Thanks to:Copyright Reserved. Complete report on request only.