New Definitions of Luxury in the Global Market

by Jacqueline FalconSMHM 2750 Section 002 004

December 8, 2009

Higher-end Goods Doesn’t Always = Higher

Satisfaction

“Brands such as Wrigley’s, Gillette and Pampers suddenly appear to be fairly close to luxury brands, enjoying a similar quality of consumer worship and obsession. None of us would normally consider chewing gum, razors or diapers as categories associated with luxury. Yet, Wrigley’s has been described in the survey as “Bite-Size Luxury” and enjoys the same highly bonded group of customers as a Louis Vuitton”(Bhat 2009)

Time is a Luxury

“Time is the most highly valued luxury (named by 35 percent of respondents as best matching their personal definition of luxury), then life experiences (25 percent), followed by having comfort, beauty and quality (18 percent)”(Consumer Research Center, 2007).

Security and Safety as a Luxury

“A place in the sun with clean air, less pollution and a good infrastructure, close to an airport but far away from terrorism - that’s a paragon of future luxury. We will not be as comfortable in big cities as we used to be.”(Carlson, 2007)

New Markets for Luxury“Growth in China, South Asia

and Central Asia may cause Asia to overtake Europe and the

Americas as the largest global luxury market region”(Schlocker,

2009)Chanel in Paris Chanel in Japan

Luxury Designers for Household Names“The world’s most valuable apparel brand in the BrandZ list this year is the relatively lesser known H&M from Sweden, which does exactly this, it offers consumers the high style associated with luxury at affordable prices, and is now worth a staggering $12 billion. Luxury can make both its users and owners feel very good”(Bhat, 2009)

Food and Health as a Luxury

“Health is turning into one of the biggest luxuries in our time when most food has converted into mass-produced semi-finished products”(Carlson 2007)

Customization, a Personal Luxury

“Many if not all of our clients have caught on to this growing trend where the need to have the ability to customize luxury products is an essential part of the purchase. Not only do these customizations provide a more personalized product for the consumer, but it also gives the consumer a closer connection to the product as they have the ability to interact with the creation of the product directly, hitting on a new emotional bond with the luxury products similar to the IKEA effect”(Schlocker, 2009)

Limited Edition Items Signal Luxury

“Limited-editions are desirable because it attracts and flirts with your persona. We will see a reaction towards the standardized global assortment and meanwhile the limited-edition series will help us feel individual and special” (Carlson 2007)

Keeping the Integrity of the Brand as a Luxury

"Louis Vuitton and Hermes in particular have stayed very pure over the years and are growing in the double digits," Sun noted. "They have good management, financial discipline and the innovation that inspires people to spend thousands of dollars on a handbag. Because, let's face it, most of us don't need another bag.”(Sullivan, 2009)

Shifting Demographics, Socioeconomics, and

Geopolitical Climates- Shift and Define Luxury

“Luxury is being defined in new ways and that definition evolves constantly with ever-shifting demographics, socioeconomics and the

geopolitical climate, luxury observers note. Furthermore, the definition of luxury is not only objective, but also subjective

depending on the buyers' personal circumstances.”(Weismen 2005)

ReferencesBhat, Harish. (2009). “The New Definition of Luxury” LiveMint.com & The Wall Street Journal.

Retrieved from http://www.livemint.com/2009/06/04211122/A-new-definition-of-luxury.htmlCarlson, David (2007). “Future Luxury” Retrieved from http://davidreport.com/the-report/issue-

6-2007-future-luxury/The Consumer Research Center of the Conference Board. (2007). “Luxury Consumers: What

Counts is Experiences, Not Things” Retrieved fromhttp://www.marketingcharts.com/television/luxury-consumers-what-counts-are-experiences-not-things-1063/

Shlocker, David. (2009). “What Will Change in the New Luxury Marketplace?” Retrieved fromhttp://jots.drsandassociates.com/2009/10/26/what-will-change-in-the-new-luxury-marketplace/

Sullivan, Aline. (2008). “Luxury Brands Covet the Recession-Proof”. The New York Times. Retrieved from http://www.nytimes.com/2008/03/07/style/07ihtmluxe.1.10800096.html

Weismen, Katie. (2005). “America’s Take on New Luxury” The New York Times. Retrieved From

http://www.nytimes.com/2005/12/04/style/04iht-rbuy.html?_r=1