luxury brands are about more than price point, quality and image. examine the strategic underpinings of great luxury brands and how they become and stay relevant for today's audiences

1. D E V E L O P I N G T H E P O T E N T I A L O F
L U X U R Y B R A N D S
S T E F A N G E R A R D

2. Pricing Power
Portfolio Elevation
Increased Brand Equity
Expanded Business Opportunities
WHY LUXU RY

3. Creating perceived value beyond the product
WHAT I S LU XU RY BRAND ING
ō
Expanding Universe Of The Brand
Brand’s Value≈ç ≈ç
Core
Product

4. A L U X U R Y ’ S B R A N D S
A B I L I T Y T O E X P A N D
Is dependent on the strength of the core brand
And commitment to continuous evolution

5. C REATE A WO RLD FO R THE CUSTOMER THAT
INC REASE S TH E VALUE OF THE BR AND
EXPERIE NCE
TH E GOA L

6. L U X U R Y B R A N D S
A R E D I F F E R E N T
“Cadillac is a luxury brand that just happens to make cars”
- UW E ULI NGHAUS – CMO CADI LLAC

7. L U X U R Y B R A N D S S E L L A D R E A M T H AT T H E I R C U S T O M E R S H AV E
N O T E X P E R I E N C E D B E F O R E

8. L U X U R Y B R A N D S M U S T C R E AT I V E LY E X P R E S S T H E I R P O I N T O F
V I E W A S A E S T H E T I C S A R E E S S E N T I A L T O T H E M A G I C

9. L U X U R Y B R A N D S N E E D T O C U LT I VAT E T H E I R H E R I TA G E A N D
C R A F T A R E L E VA N T C O N T E M P O R A R Y N A R R AT I V E

10. H E R I TA G E E S TA B L I S H E S L E G I T I M A C Y O F S U P E R I O R I T Y A N D W H Y I T
N E V E R N E E D S T O B E P R O V E N … O N LY D E M O N S T R AT E D

11. L U X U R Y B R A N D S N E E D T O E M B R A C E I N N O VAT I O N B E C A U S E AT I T S
C O R E L U X U R Y I S D I S R U P T I V E T O N O R M S

12. “Luxury brands subtly communicate [to their customers] that they
are special, different and at the very forefront of social trends.”
- Professor Paurav Shukla Luxury Marketing 2016
L U X U R Y M A R K E T I N G
I S D I F F E R E N T

13. L U X U R Y B R A N D S H A V E T H E I R O W N P O I N T O F V I E W . T H E Y
D O N ’ T R E F L E C T B A C K T H E V A L U E S O F A TA R G E T G R O U P

14. L U X U R Y B R A N D S S P E A K T O T H E I R C U S T O M E R S A S P E E R S

15. L U X U R Y B R A N D S TA L K A L O T O F T H E M S E LV E S B U T
L I T T L E A B O U T T H E I R C U S T O M E R S

16. “Desired by many, acquired by few.”
T H E L U X U R Y C O N S U M E R
I S C H A N G I N G

17. 1 In 4 Adults (67% Of Consumers)
Men/Women 58%42%
21% Y/Y Growth*
Largest Group To Smallest:
1. Millennials (20-36 Yrs Old) 47%
2. Gen X (37-52 Yrs Old) 28%
3. Boomers (53-71 Yrs Old) 20%
Boomers Still Largest Overall Spender With Median Spent On A Luxury Item ($900
Boomer/$650 Genx/$600 Millennial)
Source: Shullman Luxury, Affluence And Wealth Pulse 2016
WHO IS BUYING LU XU RY TODAY

18. WHAT ARE THEY BUYI NG?
Fragrance/Cosmetics
Alcoholic Beverages
Travel
Jewellery/watches
0 8 15 23 30
5
3
2
4
5
7
6
10
10
11
14
16
Millennial
Gen X
Boomer

19. C H A R A C T E R I S T I C S O F L U X U R Y
H A S E V O L V E D
F R O M
Exclusive
Spontaneous
Designed
Customized
Status
Objects
Acquisition
Individualistic
Timeless
TO
Unique
Considered
Made
Personalized/Intimate
Personal Identity
Ideas/cultural
Experience
Participatory
Surprise/on demand

20. T H E A R C H I T E C T U R E O F
L U X U R Y B R A N D S
“Each brand needs to focus on core topics and do these
right, rather than branching out too quickly.”
- Marc Puig, CEO Carolina Herrera

21. C A S E S T U D Y
G R E AT L U X U R Y B R A N D S

22. I N V I T E T H E I R C U S T O M E R S T O E N T E R A R I C H A N D
C O M P E L L I N G W O R L D

23. A N E X O T I C J O U R N E Y A C C O M P A N I E D B Y A S E X Y P A R T N E R W I T H A
S T E A M E R C A S E F U L L O F C O N T R A B A N D

24. A N I M AT E D B Y A F U N D A M E N TA L T E N S I O N / B E L I E F

25. D O E S T H E M A N M A K E T H E J O U R N E Y
O R D O E S T H E J O U R N E Y M A K E T H E M A N ?

26. M O T I VAT E D B Y A P U R P O S E

27. L I F E I S A J O U R N E Y
( E S P R I T D E V O YA G E )

28. … F O R W H I C H T H E B R A N D / P R O D U C T I S E S S E N T I A L

29. F O R T H O S E W H O P U R S U E T H E M A S T E R Y O F L I F E ,
L O U I S V U I T T O N I N S P I R E S L I F E ’ S G R E AT J O U R N E Y.

30. C A S E S T U D Y
T O M M Y H I L F I G E R

31. C A S E S T U D Y
G R E AT L U X U R Y B R A N D S …
I N V I T E T H E I R C U S T O M E R S T O E N T E R A
R I C H A N D C O M P E L L I N G W O R L D :
A n e w A m e r i c a n f a m i l y, w h e r e e v e r y o n e i s a n
i n d i v i d u a l w i t h t h e i r o w n s t o r y t o t e l l .
A N I M AT E D B Y A F U N D A M E N TA L T E N S I O N :
C a n w e b e a n o r i g i n a l a n d f i n d a p l a c e o f
b e l o n g i n g ?
M O T I VAT E D B Y A P U R P O S E :
L i v e l i f e a s a n i n d i v i d u a l .
F O R W H I C H T H E I R P R O D U C T / B R A N D I S
E S S E N T I A L :
F o r t h o s e s e e k i n g t o b e a n i n d i v i d u a l , To m m y
H i l f i g e r c r e a t e a p l a c e w h e r e y o u b e l o n g .

32. C A S E S T U D Y
G R E AT L U X U R Y B R A N D S …
I N V I T E T H E I R C U S T O M E R S T O E N T E R A
R I C H A N D C O M P E L L I N G W O R L D :
A m i n i m a l i s t a p p r o a c h t o l i v i n g w e l l .
A N I M AT E D B Y A F U N D A M E N TA L T E N S I O N :
T h e e x q u i s i t e b a l a n c e o f c o m f o r t , s t y l e a n d
e l e g a n c e .
M O T I VAT E D B Y A P U R P O S E :
A c h i e v i n g a h i g h e r s t a t e o f l i v i n g .
F O R W H I C H T H E I R P R O D U C T / B R A N D I S
E S S E N T I A L :
F o r t h o s e w h o s e e k a h i g h e r s t a t e o f l i v i n g , A r m a n i
p r o v i d e t h e i n g r e d i e n t s

33. C O N S I D E R A T I O N S F O R B U I L D I N G A N D E X T E N D I N G
L U X U R Y L I F E S T Y L E B R A N D S
1. Commit
building and maintaining a core luxury brand is commitment of time, effort and capital.
2. Build the Core
Before contemplating line or brand extension build the core brand/product proposition and the
ability to connect with customers across multiple touchpoint.
3. Explore Adjacent Categories
Via imagery and association in marketing and communications that open the door to new category
that are a natural extension of core values and distinctive design language of the core brand.
4. Stay True to Core Identity and Strengthen Lifestyle Associations
Expand into categories that tie back to the brands origin/heritage and consumers can easily
make the connection back to the core brand.

34. T H A N K Y O U