DNA of luxury brands
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The document discusses the key factors that define luxury brands. It identifies four variables - heritage, innovation, unattainability, and bespoke design - that give birth to luxury brands. It also outlines several constants, like quality, timelessness, and exclusivity, that luxury brands use to maintain themselves. Luxury retail and communication behaviors focus on delivering exceptional experiences that highlight the constants and romanticize the product origins defined by the variables.
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DNA of luxury brands
- 1. The DNA of Luxury Brands By Sonal Agrawal www.theluxefactor.blogspot.com
- 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. Structure Birth of Luxury Maintenance Tools Maintenance Tools Luxury Brand Behaviours Retail Communication www.theluxefactor.blogspot.com
- 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
- 6. Hermes Pincess of Monacco: Grace Kelly 100 yrs old technique. Craftsman’s badge no. embossed www.theluxefactor.blogspot.com
- 7. 2) Innovation Originality and being the first of its kind. www.theluxefactor.blogspot.com
- 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. Ducati (using heritage and innovation) www.theluxefactor.blogspot.com
- 10. 3) Unattainable Rare, Exotic, hard to find, harder to attain… www.theluxefactor.blogspot.com
- 11. www.theluxefactor.blogspot.com Unattainable Natural Scarcity Emotional Scarcity Brand induced scarcity Unattainable pricing
- 12. Mortlach 70 year old scotch - $ 15000 www.theluxefactor.blogspot.com Natural Scarcity
- 13. Freedom Peace of mind Youth Sleep Time www.theluxefactor.blogspot.com Emotional Scarcity
- 14. Limited Edition by Jean Paul Gaultier www.theluxefactor.blogspot.com Brand induced scarcity
- 15. High Costs Low Volume High Price www.theluxefactor.blogspot.com Unattainable Pricing
- 16. 4) Bespoke Personalized… ‘ made to measure ’ www.theluxefactor.blogspot.com
- 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. 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. But apart from the variables, there are some other elements that are core to any luxury brand… www.theluxefactor.blogspot.com
- 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. 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. 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. 3) Pampering An overwhelming, lavish experience www.theluxefactor.blogspot.com
- 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. 5) Emotional Involvement Luxury cannot be bought on impulse! www.theluxefactor.blogspot.com
- 26. 6) Pride of Ownership Experiencing luxury brings about a change in the perception of one’s self worth… www.theluxefactor.blogspot.com
- 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. 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. 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. APART FROM THE VARIABLES AND THE CONSTANTS… There are also certain BRAND BEHAVIOURS specific to luxury brands www.theluxefactor.blogspot.com
- 31. Luxury Brand Behaviours The two key areas where Brand Behaviours manifest themselves: www.theluxefactor.blogspot.com Retail Communic-ation
- 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. Key focus areas for luxury retail… Customer service Windows display Store Layout Visual Merchandising Fitting Rooms Ambience Lounging spaces Washrooms Atmosphere Extras and give-aways 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. 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. Communication Behaviours… www.theluxefactor.blogspot.com
- 36. “ In luxury, Less is more” Least possible exposure in the mass media… High exposure = high accessibility = not luxury!! www.theluxefactor.blogspot.com
- 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. 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. 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. Ways of romancing the product… www.theluxefactor.blogspot.com
- 41. The Product needs to be presented in the best way possible… www.theluxefactor.blogspot.com
- 42. The Language used to describe the product and the craft… www.theluxefactor.blogspot.com
- 43. Romancing the product… and the skill / inspiration behind its production www.theluxefactor.blogspot.com
- 44. Romancing the consumption ritual www.theluxefactor.blogspot.com
- 46. Suggesting the preciousness of the product… www.theluxefactor.blogspot.com
- 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. Glorifying the Source… Exotic ingredients and their exotic sources must be glorified… www.theluxefactor.blogspot.com
- 49. Made from gold, silver, platinum and Caviar Cashmere from Mongolia French Wines Swiss watches Belgium Diamonds… www.theluxefactor.blogspot.com
- 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
- 51. THE VARIABLES ARE LEVERAGED IN THE PRODUCT COMMUNICATION… AND THE CONSTANTS ARE USED TO GIVE THE CUSTOMER THE OVERALL BRAND EXPERIENCE at retail … www.theluxefactor.blogspot.com