Creating the Luxury

Experience
Prof.Sagar Narsian
https://www.youtube.com/watch?v=14bCp4dfzaU
 The Incredible Indian Luxury Consumer

• The concept of luxury has been changing dramatically across time and
culture

• The Indian luxury consumer could be subdivided into many traditional

classes.

• The true impact of Gen Y and Z are a matter of further study since typically,
the purse strings are still controlled by Gen X and above.

• The behavior of their off-spring, while important influencers, are not yet key
purchase drivers.
 The Incredible Indian Luxury Consumer

• Born with a silver spoon, the old money group has inherited wealth.
Luxury is hence, a way of life for them.

• The elitist, original, sophisticated, upper-class spill over from the erstwhile
Nawabs and kings, who despite the Privy Purse restrictions, have
continued their traditional conspicuous consumption all through the post-
independence decades, and have not been dependent during the new
wave of luxury goods into India.
 Concept of luxury has been changing dramatically across time & culture

• These luxury consumers want exclusivity and customization, key drivers

being individuality, personalization and a special effect just for them.
This small percentage of Indians perhaps contributes a maximum value
to the luxury sales.
 The Nouveau Riche Consumer - The New Maharaja

• Created during the post-industrialization phase of the sixties, the new industrialists,
the new rich, or the new factory owner is the current darling of the luxury &
lifestyle market.
• Have earned the wealth themselves, are willing to spend but at the same time are
conscious on what they are spending their money on.
• While the older generation prefers spending on safe assets like jewellery, their
successive generation tries to pull them out of the closet to devote more spend
on trendy items & luxury experiences
 The HENRY – The Educated, Corporate Professional

• The management graduate with MNC income; the DINK (double-income, no

kids); the HENRY (high-income, not rich yet); and the YUUMY/YUPPY (young
urban, upwardly mobile) shop luxury like there is no tomorrow.

• They need to dress well, drink well, eat out frequently, socialize, entertain,
and relax-- essentially living well and living for today.

• They place importance on luxury automobiles, mobile phones, and seasonal

wardrobe changes and are considered the next big spenders on all things
luxury.
 The Returning NRI (Non-Resident Indian)
• During the 1960s and 70s, many educated Indians moved to the United
States for a better quality of life.
• The reverse brain drain due to global meltdown brought back a whole lot of
technocrats and their ABCD (American-born, confused desi) off-spring.
• They seek the westernized lifestyle which they left behind. Some still use
artificial accents to show their superiority to locals, and at times end up
being made fun of.
• This group is well-educated, well-exposed and tech-savvy. As more and
more globetrotting NRIs make their way back to resettle in India, the luxury
industry has hugely benefitted.
• Used to a certain standard of living and services that they have experienced
abroad, they seek the same in India. Particular gains have been seen in
luxury real estate, home decor, hospitality, fashion, and restaurants.
 The Bargain Hunter

• This class is visible during EOSS (end of season sales).

• They come out in large numbers and can be seen walking around
showrooms wondering why goods are so expensive even during sale
periods.

• They buy small, but will graduate to higher level purchases as their
career progression supports them.
 Indian luxury shopper can be further categorized
into the following segments:
Richie Rustie:
• These are people who do not follow any set patterns and defy stereotyping. They
buy luxury brands for no fixed reasons and so it is difficult to fit them into any
segment.

Vivacious Vivant:
• Comprise of self- made entrepreneurs or professional business
executives who want to spend money to enjoy life, without feeling
guilty. They work hard so that they can achieve success and celebrate it
by buying luxury brands.
 Indian luxury shopper can be further categorized
into the following segments:
Political Prowler:
• They want to acquire anything new with the money they have. Acquisitive to the
core, has a childlike mentality of coveting whatever they sees new. The source of
their riches can be unclear but they contribute the maximum to the purchase of
luxury brands.
Affluent Ascetic:
• These are very rich and want value for money. So they may buy Jimmy Choo shoes
and at the same time they are not embarrassed about buying Kolhapuri chappals.
They buy luxury products only when they satisfy their needs.
 Indian luxury shopper can be further categorized
into the following segments:
Classy Connoisseur:
• These are ultra- high net worth individuals and purchase luxury products for
their intrinsic satisfaction. For them, luxury is a part of day-to-day life and
have a style of their own.

Flashy Flaunter:
• They buy luxury brands to achieve status in society and so they look for luxury
products where luxury is visible in the form of logos. So they buy luxury products
like watches and cars but will not buy luxury products where luxury is not seen such
as lingerie and high quality kitchen and bathroom fittings.
 Luxury segmentation

• Sociology research acknowledges that it is impossible to understand luxury

simply as something that is, or an object waiting to be analyzed.
• Luxury is the output of the social dynamics of a society, whereby some
groups seek to signal their symbolic superiority in taste, if not wealth and
power.
• All members of society use brands to position themselves, but luxury brands
are those used in the higher-end game, involving the elites – whether old or
recent – and a new upper-middle class searching for recognition.
 Customer journey framework
• Generating awareness
• Maximizing purchase consideration
• The buying experience
• Building loyalty
 Generating Awareness - Dior
• The iconic French brand Dior has adopted a very unique approach to generating
awareness for its brand in India.
• Their brand ambassador and representative is not an internationally recognized
celebrity or even a Bollywood star but an Indian socialite with an impressive list of
potential Dior customers.
• Kalyani Chawla is not only VP Marketing and Communications at Dior India, but in fact, its
walking talking brand ambassador who recruits customers with the same ease and élan as
she sips her champagne.
• She not only understands the world of über-luxury globally, especially how French brands
work, but also has deep insights on luxury retail in India having been associated with the
Indian brand Ravissant.
Generating awareness-Dior
 Generating awareness-Dior

• Usually dressed only in Dior, Chawla is a total personification of the Dior brand.
She has smartly positioned herself in the highest society circles to be the ‘go to’
person for the latest tips in fashion, style and even entertaining.
• Tapping into her personal extended social network, Chawla has been able to
generate tremendous awareness and aura for the brand with the right target
clientele
 Generating Awareness – Dior

• Beyond Chawla, Dior also over-invests in the ‘awareness’ stage of

• the customer journey by doing two more things very well: product placements and PR.
• On the product placement front, Dior scored a real coup with the Bollywood film Aisha.
• Sonam Kapoor, the lead actress, sported more than 60 Dior dresses and accessories.
• She also carried her Lady Dior purse throughout the movie.
• And the male lead, Abhay Deol, wore Dior suits as well! With PR, Dior has been very
aggressive securing 20 magazine covers in 2010 alone (Vasudev 2011).
 Generating awareness-Dior

What Dior should next do to further emphasize

its brand in the Indian market ?
 Maximizing purchase consideration: Audi
• Like Dior, Audi, the German car brand, is also investing heavily in creating
awareness and pull for the brand through advertising, sponsorships and
publicity.
• But what the brand has really excelled at in India is to create an engaging
experience for customers who are exploring and considering buying an Audi
• This has been done both offline through the design of their dealerships and
online through a very innovative 3D campaign for their new A8L launch
• https://www.youtube.com/watch?v=VjGebnuWxPs
 Maximizing purchase consideration: Audi
• Audi Mumbai West showroom, for example, is an experiential personification of
brand Audi.
• Potential buyers feel the sportiness, progressiveness and stylishness of the brand
throughout the experience and not just in the cars themselves
• The spacious showroom is minimalistic in design and very luxurious in feel.
• Every detail has been taken into account (from what flowers should be used in
vases to the kind of coffee served) to ‘craft’ a very Audi brand experience
• for customers.
• The design is based on what Audi calls a ‘terminal’ concept that combines the
efficiency, performance, luxury and environment themes that Audi stands for.
 Maximizing purchase consideration: Audi
• Such an approach to the customer experience truly enhances the attractiveness
of the brand in the eyes of its potential customers.
• Audi has been able to strongly differentiate the experience of its dealerships
in line with its brand values to drive greater affinity and therefore sales success
in India
 The Buying Experience: Hermès
• Deciding to side-step the biggest challenge of being a luxury brand in India,
which is infrastructure for retail, Hermès made a strategic decision to invest in
a stand-alone flagship store in Mumbai.
• This is quite unlike other luxury brands who typically choose to be in either a
high-end shopping mall like DLF Emporio in Delhi or in a five-star hotel like
the Taj or The Oberoi.
• This is also a departure from the brand’s own strategy to date – its first two
stores are located at The Oberoi in Delhi and the Hyatt Hotel in Pune.
The Buying Experience: Hermès
 The Buying Experience: Hermès
• Located in the historic Ballard Estate in South Mumbai, the 5000 square feet space
is a true hommage to the spirit of the brand.
• Spread over two floors, the store is spaciously laid out with ample room for
exploration and intimacy with the full range of Hermès products, from the ragingly
popular Birkin bag to the specially customized India sarees.
• The staff are neither intrusive nor pushy, yet they seem to be right there when a
consumer has a question.
• They are equipped with the brand knowledge to answer customer queries
impressively and with a surprising level of sophistication for a typical luxury brand
sales person in India
 The Buying Experience: Hermès
• Hermès has full control over the design and implementation of the
• desired brand experience.
• The brand is able to ‘live’ the brand’s philosophy and truly delight the
Indian luxury customer who has often been disappointed by
experiences other brands deliver
 Building Loyalty: Harley-Davidson
• Most luxury brands in India forget about their consumers the moment a
transaction has been completed
• Harley-Davidson, however, organizes rides and events through HOG (Harley
Owner’s Group) in India which gives bike lovers a full brand ownership
experience
• The Harley Owner’s Group is the world’s largest company sponsored
• motorcyclists’ club.
• It has 1.3 million members in over 130 countries.
• The dealers become the sponsors of local chapters of HOG that is
essentially a forum for bike owners to meet, interact and enjoy their die-hard
passion for biking through a shared community.
 Building Loyalty: Harley-Davidson
• Through HOG, Harley is able to forge a deep loyalty with its customer
• base, creating conditions for them to easily recruit interested friends
into the Harley fold as well.
• And they have a ready made platform – the Harley Boot Camp –
which is a fully immersive brand experience designed to create high
levels of aspiration and design for the brand
• https://www.youtube.com/watch?v=y8zpt6aPXvA

• https://www.youtube.com/watch?v=WABbFyFnfOU
Building Loyalty: Harley-Davidson
• In a similar vein, Harley Rock Riders is another
initiative that brings together even more riders,
potential and existing ones.
• The event conceptualized by Harley-Davidson
India and Rolling Stone
• India presents a music platform that combines
live rock music with the values of Harley-
Davidson.
• The Indian customer belongs to a state of mind
rather than a particular demographic profile.
The development of an ongoing and holistic
brand experience facilitates this brand
relationship.
Luxury segmentation
 Luxury segmentation
• The bottom of the vertical axis symbolizes the need to be integrated
into an aspirational class, even symbolically (as is the case for Chinese
consumers).
• The top of this axis symbolizes a contrary movement, by which
consumers seek to stand out from the crowd.
• Then the horizontal axis refers to the need to signal superiority, either
through a product culture or by the exhibition of holy logos.
• In turn, we propose four types of luxury segments and brands to
appeal to them:
 Luxury segmentation
• The lower right quadrant is the bulk of the luxury business: Queues of
tourists passively wait in front of luxury brands’ flagship stores in the
capital cities of the world.
• These brands are worldwide visas of distinction.
• Because they are so well known, they confer respect onto their owners.
• They induce no risk, so the size of the brand and its growing volume of
sales is not a problem, as long as prices keep rising.
• The power of the well-known luxury brands is a guarantee of taste.
The logo must be visible, as a holy sign, and they often can be found in
airport tax-free zones
 Luxury segmentation
• The upper right quadrant is a consequence of the growth of the former
category. If some brands become adored by the happy many, the
happy few must differentiate themselves another way.
• They choose more expensive, very visible and flashy brands:
Lamborghinis instead of Ferraris, Dolce & Gabbana instead of Chanel.
• These brands attract people with high needs for recognition and
power.
• • The upper left quadrant also provides differentiation, but through
edgy brands or even start-ups – typically, the brands we might find in
selective, multi-brand shops, such as Colette, which thrive by discovering
new talent.
 Luxury segmentation
• The lower left quadrant is the connoisseur corner. These brands
promote a product culture, selling excellence in life.

• For them, there are no luxury brands, only luxury products.

• This stance represents their ideological, self-serving storytelling.
 The changing behaviors of luxury consumption

• Luxury is no longer the embrace of the Kings and Queens of the world
but the mass marketing phenomenon of everyday life
• The concept of luxury is incredibly fluid and changes dramatically
across time and culture.
• In the past it was associated with champagne, caviar, designer clothes
and sports cars. Nowadays with increased affluence, luxury is a
blurred genre that is no longer the preserve of the elite.
 The changing behaviors of luxury consumption

• More and more consumers have traded up as the old values of

tradition and nobility have become less important.
• People are enjoying much more material comfort in comparison to
previous generations, resulting in a trend of a cultural shift for personal
fulfillment and aspiration through experience.
• Therefore, it could be argued that luxury is increasingly about
experience and authenticity (Yeoman and McMahon-Beattie, 2010),
rather than monetary value. This is not to say that luxury is about status,
but luxury is more than monetary value.
 The changing behaviors of luxury consumption

• This focus on aspiration and experience means increasing emphasis on

personal transformation through, for example, well-being and travel. It
means that consumers want to improve their life
 CHANGING BEHAVIOURS

• Luxury and quality

• For many, luxury is often achieved not through the accumulation of multiple goods
but through the purchase of a particular, special item.
• Many consumers aspire to access goods, experiences and treats that would
normally not feature in one's day to day consumption.
• Yeoman and McMahon-Beattie (2010) note that there has being significant
numbers across all ages and social grades who agree that they would rather own
one good thing rather than lots of cheap things
 CHANGING BEHAVIOURS
• Data by the Future Foundation (2010) suggests that the youngest age
groups are consistently the most aspirational – over half would pay
significantly more for a car and over 40 per cent for a pair of jeans in
a luxury category.
• Verifiable quality is playing an ever sharper role within consumer
expectations. It is just not particularly fashionable to presume in favor
of the pretty and the over-priced – as if that were collectively a
guarantor of a luxury outcome. Across so many markets, recession
strengthened the maximizing instinct – the willingness to take time to
scrutinize offers in search of both a quality and value-for-money result.
 CHANGING BEHAVIOURS

• Luxury for rent

• The appeal of renting luxury products instead of buying continues to rise. Nearly a
quarter of 15–24s and over a fifth of 25–34s are favorable to the idea of
getting access to luxury products by hiring or renting them according to research
by the Future Foundation (2010).
• The renting trend chimes with another evolution in luxury consumption – that of the
weakening appeal of showy, materialistic wealth and a growing intolerance for
wasteful consumerism.
 CHANGING BEHAVIOURS

• Tracking data by the Future Foundation (2010) shows us that high levels of eco-
sensitivity remain and these attitudes will naturally impact upon luxury purchasing
and indulgence. Although an ultra-hedonistic type of luxury indulgence is still
something that consumers will – at least occasionally – want to satisfy, certain
luxury aspirations are undoubtedly subject to greater scrutiny and questioning now.
• As a consequence, luxury has now become so democratic that it is ubiquitously for
rent. The growth of websites such as www.bagborroworsteal.com offers couture
and designer handbags for rent – allowing a larger group of consumers a share in
the luxury lifestyle, without the need for a luxury-sized salary.
 CHANGING BEHAVIOURS

• Bag, Borrow or Steal was first to market offering the concept of

borrowing luxury products and is leading a revolution in the way
consumers shop for designer goods or gain access to exclusive
events/lifestyles.
• You can rent a Ferrari or Aston Martin car for an evening from the
Classic Car Club and connecting to auction sites like Ebay
(www.ebay.com) and Portero (www.portero.com) where you can bid for
second-hand luxury items for a fraction of the price-tag for new items.
 CHANGING BEHAVIOURS

• Mercurial consumption
• Consumers are very aware of tariffs, even when they think about treats
and indulgences. Searching for discounts is becoming a more commonly
attractive behavior and any negative or socially unappealing
association in relation to bargain-hunting in luxury markets are
• Flatters and Wilmott (2009) call this mercurial consumption in which
consumers extensively search out for bargains.
 CHANGING BEHAVIOURS

• The use of technologies and websites such as www.farecast.com that

advises travelers of the optimal time to purchase an airline ticket or
price, or grabbing last minute offers from websites such
as www.grabaseat.co.nz that offer last minute air travel deals to New
Zealand consumers, or www.5pm.co.uk that offers diners the chance of
discounted meals after 17:00 that evening.
• Technology and social media network enabling purchasing strategies,
further accelerate this trend of mercurial consumption.
 CHANGING BEHAVIOURS

• The discount club Little Emperors (www.littleemperors.com), offers

customers concessions of up to 60 per cent from a range of luxury
brands including Cartier and Jimmy Choo as well as discounts on
experiences and services like holidays, chauffeuring and restaurants.
Elsewhere on the internet, successful luxury shopping sites
include www.vente-privee.com and www.Cocosa.com.
 CHANGING BEHAVIOURS

• Exclusivity
• One of their challenges for luxury brands is that they face the risk of
being perceived as too accessible and losing their exclusive appeal.
Appealing to the masses can be lucrative but luxury goods
manufacturers also run the risk of, so to speak, disturbing their
meaning-narrative.
 CHANGING BEHAVIOURS

• These brands have long been perceived as scarce and out of reach.
• Louis Vuitton (www.louisvuitton.com) has had to fight hard to preserve
its image after thousands of fake copies of their handbags can now be
found in almost any street market around the globe.

• Burberry (www.burberry.com) has suffered when somewhere along the

line, the brand became the new status symbol for working-class youth.
 CHANGING BEHAVIOURS

• Luxury brands at the top end risk over-exposing themselves by

expanding too far into the mass market and must find new ways to
maintain their luxury credentials. In other words, they have to redefine
‘real luxury’ from mass luxury.
• he definition of luxury has also gradually expanded from material
goods such as designer clothes and jewellery and many of the
traditional luxury providers now face competition from new forms of
luxury such as new types of lifestyle holidays, spa retreats and other
‘experience’ providers’.
 CHANGING BEHAVIOURS

• New expressions
• Consuming luxury in a more socially aware manner is a trend that is growing
in importance. Luxury is becoming more closely aligned with deeper issues
such as eco-awareness, intelligence, healthy and ethical lifestyles.
• The appeal of, say, a technologically superior Smartphone′s sophisticated
game console that is focused on improving body or mind, personalized
professional fitness services or rich and locally produced foods has been
strengthened because of their associations with social values that are
increasingly thought to be attractive, admirable and aspirational
• https://link.springer.com/article/10.1057/rpm.2010.43
https://www.youtube.com/watch?v=pvcgSjA86Ik
 Delivering a Luxury Brand Experience
• India’s growing tribe of old and new luxury consumers is more traveled, more
discerning and more demanding than ever before.
• Gone are the days when multi-national companies could get away with
introducing outdated models or having limited product selection for the
Indian market
• Indian luxury consumers might notice the Louis Vuitton logo and be enticed by
an impressive lifestyle ad in a glossy magazine, but it is their experience of
the Louis Vuitton brand across all interactions that will shape their perception
of the brand
• And ultimately, positive perception is key to driving purchase and loyalty,
and therefore long-term business success
 Delivering a Luxury Brand Experience
• In luxury brand management, experiences are essential.
• We are living the experience economy. Experiences engage customers and
in creating memorable events connect them emotionally to the company or
the brand.
• An increasing number of organizations are placing experiences at the core
of their marketing strategy and, in luxury brand management, experiences
are essential
 Let’s Begin…..
• DEFINITION Oxford English Dictionary definitions:

• Excellence – ‘the quality of being outstanding or, extremely good’

• Service – ‘the action of helping or, doing work for someone’

• Luxury – ‘ a state of great comfort or, elegance, especially when involving a

great expense’
 Delivering a Luxury Brand Experience
• Booz Allen Hamilton:

• ‘excellence of underlying product is merely a starting point’ The overall

lifetime experience with a luxury brand must keep the promises of
performance, comfort, elegance and the prestige conveyed.

• Customer service an integral part of the ownership experience

 What is luxury experience?
• Conventional wisdom suggests that luxury experience is achieved by offering
the highest quality in any of the elements that mass brands also offer.

• The service added to the offering should be delivered impeccably.

• Luxury is a differentiated offering that delivers symbolic and experiential
value besides functionality
• At times, ironically, offering symbolic and experiential value requires luxury
brands to not offer “impeccable quality”.
• For example, while many could think of a Ferrari’s noise and wasted
potential as product “flaws”, from a luxury experience perspective these are
part of the brand’s philosophy:
 Delivering a Luxury Brand Experience
• Experiences occur when customers interact with one or more elements of
the brand context and, as a result, extract sensations, emotions, or
cognitions that will connect them to the brand in a personal, memorable
way.
• Specific aspects of the brand context, such as store atmosphere or
human elements, influence customer experience. However, customer
experience is holistic.

• Source:https://www.europeanbusinessreview.com/designing-luxury-experience/
 Delivering a Luxury Brand Experience
• Brands must go beyond what traditional branding frameworks
recommend to create luxury experience.
 1. Beyond brand values, beliefs
• Luxury brands should advocate beliefs to their customers.
• Beliefs can be seen as the brand’s philosophy, apparent both at product
and brand levels, and which becomes a guiding principle for those brands.
• Beliefs go beyond brand values because beliefs are more specific (though
subjective) and consequently more segmenting.
• Unlike mass brands, luxury brands should not strive to please everyone,
but should attract those customers whose beliefs are similar to theirs
 1. Beyond brand values, beliefs
• For example, Louis Vuitton, beyond the brand value of “travelling”,
believes in practicality. Louis Vuitton initially embarked on innovation
by substituting round suitcases with rectangular, flat-bottom models that
could be stacked.
 1. Beyond brand values, beliefs
• Ferrari believes in performance and, as a consequence, it rarely
advertises; however, it invests significant amounts in Formula 1 events. It
focuses on actions related to its beliefs to reinforce those beliefs in
consumers’ mind
 1. Beyond brand values, beliefs
• E.g. , La Martina applies this principle by defining itself not as a fashion brand, but
as a polo brand (it sells apparel and accessories related to the polo lifestyle). La
Martina reinforces this belief in several touch-points, such as the atmosphere of its
stores, the design of its clothes, and by being constantly present at polo events.
 2. Beyond a logo, a set of visual icons
• When consumers think of a true luxury brand, they likely think of a whole
set of visual icons that can include monograms, brand symbols, logos,
colors, patterns, images, or even concepts.
• The stronger the brand, the broader the spectrum of icons can be.
 2. Beyond a logo, a set of visual icons
• For example, leather goods from Bottega Veneta display no visible
brand symbols, but many consumers recognize the weaved leather
pattern for which the company is known.
• https://www.youtube.com/watch?v=khUeK9mkiB4
 2. Beyond a logo, a set of visual icons
• Luxury brands should actively choose their symbols and iconize them
through constant and consistent repetition. A good example is the black
dress, which appears revisited in Chanel collections every year.
The 7 Principles of Luxury Experience
 3. Beyond a product, a unique ritual
• True luxury brands cannot stop their offering at the product.

• Luxury brands should go beyond that and offer unique services or rituals.

• This can start with attentive salespeople and prompt customer service, but
it should go beyond that to offer a differentiated, unique buying and
consumption “ritual” that exceeds expectations.
 3. Beyond a product, a unique ritual
• A powerful example of moving beyond products and offering a unique
ritual is the perfume brand Le Labo.
• Using the premise that the quality of perfume deteriorates over time, it
revolutionized the consumer buying experience by offering a
personalized and special experience: each Le Labo perfume is hand-
blended and individually prepared in front of the customer at the
moment of purchase.
• The glass decanter is then dated and the customer’s name is printed on
the label. After taking the package home, the customer needs to let the
perfume marinate in the fridge for one week before wearing it. It
becomes a personal, exclusive, and unique choice of fragrance.
 3. Beyond a product, a unique ritual
• https://www.youtube.com/watch?v=wz9QlBNjqzM
• https://www.youtube.com/watch?v=1ELV-t0_GYY
 4. Beyond a point of sale, a temple
• Luxury brands must pay special attention to the way they sell and
innovate at the point of purchase.
• Where before luxury brands used brick-and-mortar stores mainly to
sell products, they now aim at designing multifunctional, controlled
spaces to create brand experiences and communicate brand beliefs
through events, exhibitions, and collaborations.
• These stores function almost like religious temples for discerning
consumers
 4. Beyond a point of sale, a temple
• For example, Prada embarked on a unique project in combination with
AMO, a research studio based in Rotterdam, and the renowned
architect Rem Koolhaas. The result was a wide-ranging project that
included special “Epicenters”: stores designed to provide a working
laboratory for experimental shopping experiences.
• https://www.youtube.com/watch?v=X0U9xV3W3PI
 4. Beyond a point of sale, a temple
• BMW World in Munich is another example of a temple-like showroom
where consumers can experience the brand. The initiative entertains,
engages, educates, and interacts with consumers in an environment that
materializes the BMW brand.
• https://www.youtube.com/watch?v=0cqv_3Honr0
 5. Beyond segmentation, access to a parish
• Mass brands define groups or segments of consumers and push
products towards them.
• For luxury brands the roles are reversed: consumers are pulled towards
the brand with the promise of belonging to the exclusive community.
• Many consumers want access to this special group, but, similar to what
happens with many religions, only a select number who share the
brand’s beliefs may truly belong.
 5. Beyond segmentation, access to a parish
• For example, Aston Martin extends invitations to events and maintains
one-on-one relationships even with customers who bought their cars
fifteen years ago.
 Understanding the Fake Luxury
• Lai and Zaichkowsky (1999) define counterfeits as illegally made
products that resemble the genuine goods but are typically of lower
quality in terms of performance, reliability, or durability.

• In contrast, pirated goods are products that are exact copies of the
original and are typically limited to technology categories, such as
software.
 Understanding the Fake Luxury

• Counterfeiting is one of the oldest crimes in history.

• Perhaps the earliest and most widespread form of counterfeiting is
that of currency.
• The counterfeiting of luxury products itself dates as far back as 27 BC,
when a wine merchant in Gaul counterfeited trademarks on wine
amphorae, selling inexpensive local wine as expensive Roman wine
(Phillips 2005).
 The curious case of luxury counterfeits
• It has always intrigued researchers why a consumer will spend hard-
earned money, and that too, willingly on something that is not
authentic?
• What can be the lure to buy a counterfeit, a fake?

• How can luxury brands make sensible people so blind that they make a
beeline outside offline or online stores for getting their hands on these
counterfeits?
 Salient Pointers On Luxury Counterfeits:
• Growing at a breakneck speed of 40-45%, the luxury counterfeit market
touched $1 billion-mark in 2018.
• There are grades of these luxury counterfeit products and the best ones
are called first copy. They are distinctly different from the so-called
cheaper version of fakes that are easily available online or offline.
• The two most counterfeited brands are Rolex and Louis Vuitton.
• Some e-commerce sites sell counterfeits declaring them as authentic, at
unbelievable discounts. The photographs used in all such cases are illegally
taken from the official website of the luxury brand so as to create this myth
of authenticity.
 Salient Pointers On Luxury Counterfeits:
• There has been a surge in the growth of counterfeit market with the onset
of e-commerce. While earlier these fakes were bought secretly in blind
alleys, now they can be shopped from your mobile and delivered at home
at your convenience.

• There are some distinct identifiers for all luxury brand goods that help
sieve the fakes.
 Exquisite World Of First Copies

• If you look at a fake Datejust or Day Date Rolex, there will be marked
differences that even an untrained eye will be able to spot.
• But for a first copy, only the expert eyes will be able to spot the differences.
• For example, a first copy watch will have high-quality steel, sapphire crystal
case and precise mechanical movement like the original.
• The master watchmaker has not only replicated the complication with
precision but also kept an eye on the identifiers. In my book 'Dark Luxe' I
have shared the story of Master W who has been passing on this talent of
fine watchmaking over generations. Now, unfortunately, he has to make first
copies but he does it with the same dedication and pride.