Luxury brands are more than the goods'

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Luxury brands are more than the goods. They
give people the opportunity to live a dream.
The goods are secondary because first of all you
buy into a brand, then you buy the
products. Robert Polet - CEO of Gucci
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Luxury brands

• Luxury brands are an emblematic display of a
  chosen lifestyle
• Luxury brands help customers attain the desired
  sense of self, of individualism, as well as
  accomplishment of having made it.

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Luxury brands

• Luxury labels are able to
• - communicate a guarantee
• - help in rapid decision-making
• - project the self-image of the user
• - differentiate from the rest of the market
• Luxury brands need to be treated with
  extraordinary amounts of care

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Types of Luxury
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Types of Luxury - Old Luxury
Special qualities, features and attributes
intrinsic to a product. The product expresses
or incorporates features that confer the best of
the best status. Usually refers to heritage
brands that charge a premium, such as Mercedes,
Christian Dior, and Cartier. Caters to
aristocracy - the top one percent of the
population through high price points.
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Types of Luxury - Emerging Luxury
The consumer trend toward premium goods priced at
20 to 200 percent premium Deliver higher levels
of quality, taste, and aspiration than
conventional items. They are emotionally
engaging, and command a premium because of their
superior quality, performance, and emotional
appeal. Barista, Saffola, Loreal are New
Luxury brands Unlike Old Luxury items, which
are intended only for the very wealthy, Emerging
Luxury goods are meant to be accessible and
appealing to a much larger audience.
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Mass-tige Brands
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The Indian Luxury consumer

• India has luxury product sales rising 20 per
  annum and is reckoned to have over 61,000 dollar
  millionaires.
• Increasing middle class affluence has led to
  people wanting to upgrade socially through a
  shift in lifestyle.
• Exposure to aspirational images in media the
  availability of goodies in retail outlets has
  led to a redefinition of spending habits.

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Consumer Segments
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Consumer Segments The Old Rich
The Old Rich have made their money through
inheritance. Most of their wealth is in land and
real estate some also have holdings in companies
Brand awareness is extremely high. Around 50
of Louis Vuitton customers in India are those who
have owned Vuittons for generations The Old
Rich is more sophisticated, better traveled, and
more discerning than the average consumer
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Consumer Segments The New Rich

• The New Rich mimic the Old Rich. Money is used
  to cue affluence.
• Small town first generation business people
  they have achieved financial success are
  anxious to project the aura of richness
• - They want to make a statement
• - They buy opulent furniture / personal
  accessories
• - They obtain all the basic symbols of wealth
  without understanding their symbolism. For
  them, one brand is the same as any other

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Consumer Segments The Corporate Rich

• The Corporate Rich has managed to attain a level
  of affluence  that was unimaginable till a few
  years ago.
• He now wants the best in life but his
  middle-class values are intact.
• Unlike the new rich, trying to mimic the old
  rich, the Corporate Rich focuses almost entirely
  on peer group batch mates or colleagues.
• They save large parts of their income and yet
  ensure that they have enough discretionary income
  left over to keep their lifestyle going

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The Marketing of Luxury Brands

• Luxury brands must first connect with the
  consumer on all three levels of a ladder of
  benefits.
• Rung 1
• Technical differences in design technology
• Rung 2
• Superior functional performance
• Rung 3
• Brand values company ethos to engage the
  consumer emotionally

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• For a discussion on luxury branding contact us
  at footprint_at_pilgrim.co.in