Section 2: Traditional Luxury

Question 1

Difference between fashion & luxury

Answer 1

Fashion adapts to trends - Luxury is timeless

Fashion is expandable - Luxury lasts for decades

Fashion is widely available - Luxury is a scarce resource

Fashion is often made in poor countries - Luxury is crafted in the country of its origin

Question 2

8 key characteristics of a luxury brand!

Answer 2

1. Luxury should convey pleasure, aestheticism, emotions
2. Luxury should be of high quality, expert craftsmanship
3. The price of luxury is higher than just the functional price
4. Connected to its origin (creator, place of origin, traditions)
5. Top brands should not delocalise or outsource production
6. Available in few select places
7. Accompanied by personalised service
8. A social marker

Question 3

The core of the luxury brand, 7 things

Answer 3

1. Unique to brand
2. Connected to origin
3. Not influenced by customer expectations
4. Does not try to pamper to customer expectations
5. Carries the original meaning of the brand
6. Cannot be quickly altered or repositioned
7. Should influence all the brand does

Example D&G uses its Sicilian heritage

Question 4

Text about core

Answer 4

The core recalls the founder of the brand. It traces its origins back to the start of the brand. The original location of the brand remains important - no outsourcing. The craftsmanship is highly valued and rarely mechanised. The very first customers of the brand remain important to the brand story.

Question 5

The codes of the luxury brand, examples/signals

Answer 5

• the logo
• other representations
• patterns
• colors
• sensual elements (smell, taste, touch, sound)

The codes are unique to the brand! They should be easy recognised by customers

Question 6

Tips for working with codes

Answer 6

1. Identify the codes clearly
2. Focus on the most relevant codes
3. Keep CONSISTENCY
4. Do not overuse the logo
5. Do not underuse the other codes
6. Play with the brand codes to revitalise the brand
7. Apply the codes to all brand aspects
8. Revitalise the brand codes but do not be too traditional or too contemporary
9. Maximise the impact of communication

Question 7

Democratization of luxury

Answer 7

How everyday affordable luxury can add enjoyment to daily life. What does luxury do for the customer?

Question 8

Three forms of democratized luxury!

Answer 8

1. Masstige
2. Accessible super-premium
3. Extensions of luxury brands

Question 9

Masstige

Answer 9

Attributed of prestige with affordability for MOST customers. Lowest level.

Nespresso

Question 10

Accessible super-premium

Answer 10

Normal products but at the top end of their category.

Belvedere Vodka & Starbucks

Question 11

Extended luxury brands

Answer 11

Luxury brands trying to get best of both worlds

• Armani an example

Disadvantages ‐ It’s risky! Extending to non‐luxury risks destroying the brand’s prestige. ‐ How is it perceived by luxury customers? Do they still want a brand worn by “everybody”? In some Asian countries, Louis Vuitton has lost prestige as it’s come to be seen as a “secretary brand“. ‐ If the luxury brand has many different sub‐brands, the differences could become obscure in customers’ minds, undermining the brand.