What is luxury? Let's delve deeper into its world and that of the Luxury Strategy by Jean Noel Kapferer. The aim of this article is its truth; no opinions and no subjectivity.
Currently reading The Luxury Strategy by Jean Noel Kapferer, the aim of this article it to discuss a few essential points that truly make up the term Luxury. Subjectivity is out of the question. I have set out for the truth as opposed to an opinion.
"The essence of luxury is the symbolic desire to belong to a superior class which everyone will have chosen according to their dreams, because anything that can be a social signifier can be a luxury"
This was a quote by Kapferer which stood out to me because not only is it a timeless observation but it is also universal. It existed in the Egyptian age of Cleopatra and it exists today in the 21st century and will continue to exist forever.
When looked at with immense depth, a consumer does not want to purchase a luxury item or service because of the item or service itself. This desire to purchase actuals stems from the fact that they want to be the type of person that they feel is superior to them to be able to belong accordingly to that class. This superior class is subjective and potentially has to do with the fact of social stratification. There is a much deeper psychological aspect to this than the luxury item or service at hand itself; a sort of esteem effect in order to belong.
However, this is not the definition of the word. This quote has simply captured the essence of it; the bottom line of the term. A foundation for it, so to speak.
_____________________________________________________________________
Let's look at a few points below for something to be actually considered a Luxury
1) Luxury has to be multi-sensory; including rooted in culture
2) It has to have a human component; including Ethics and a client relationship
3) Qualitative, not quantitative; cannot be an excess
4) Hedonism > Functionality; both timeless yet modern
5) A luxury brand that cannot go global is not luxury
A luxury item or service carries the whole world within it. It has to be produced in a place consistent with its world. When you buy a Chanel perfume, you are not just buying Chanel, you are buying a piece of France. For this example, we will take a look at the classic Chanel perfume.
1) Multi-sensory
It's not simply enough for a luxury perfume to "smell good", it has to please the eye, thus packaging and its bottle plays a massive role. The texture of the bottle has to feel superior quality (touch), the sound of the spray has to feel appropriate (for example, is a Chanel bottle still considered luxury if it were to squeak or make a rickety sound every time you sprayed yourself?). This can be applied to any product or service; in order for it to be considered luxury, it has to immerse all of our five senses. It's not only the appearance of a Ferrari, but the sound of it, the smell of its leather and so on...
This multi-sensory experience has to come from a strong culture and heritage. If a Chanel perfume was made in Paris, but its bottle in China, its packaging in Indonesia and its repairs in Italy, it has detached itself from luxury. A luxury product or brand has to stay true to its roots and thus, to be produced in the same place. That is its anchor. If the brand relocates to a foreign land or country, it has officially lost its identity and thus, has lost the right to be called a luxury product. A premium brand can relocate but a luxury one cannot. Think of the outcry in 2007 when Burberry closed its UK factory and relocated to China in order to cut costs. Its anchor had been cut.
Therefore, it is vital to keep in mind, as mentioned earlier: A luxury item or service carries the whole world within it. It has to be produced in a place consistent with its world. When someone buys a Birkin, they are aware, they are buying a piece of Paris, France. A Birkin's identity is so rooted in its heritage and culture, that we cannot separate the bag from the country. It is a child of its country, and thus is a luxury.
2) Human component
A luxury product or service has to have a human origin, including a great deal of labor, craftsmanship, that humanistic savoire-faire and the overall experience has to be catered from a human to a human. If an algorhythm or robot would be able to produce Ferraris in the span of a day, thus producing thousands of them, the car or brand is no longer a luxury. How would it stir desire in someone if it was made by a machine and they are able to have it in a day? Where is the dream in that? So far, only humans can bring out this desire in other beings. In the Luxury Strategy, Karl Marx is used as an example as he uses diamonds to exemplify this: golds and diamonds have high value because of the immense amount of labour to extract them. Luxury has to have a strong human origin and component. "The human hand in luxury is everywhere, it is its people that make the brand."
If Ethics is not present in the supply chain of the brand, it is not considered luxury. A luxury brand has to offer a strong, transparent, ethical and virtuous supply chain. The purpose of luxury is to contribute to social peace and universal happiness. Alongside being an ethical brand (you will see more and more high end brands grasping sustainability soon as we see with Prada's Recycled Nylon campaign), the client experience needs to be up to a "luxury standard as well. From the moment a customer enters the store to the moment they exist, that whole customer journey needs to be up to par at every moment along the way. This includes making the consumer feel unique, special and catered to with a high degree of attentiveness, selling not only the luxury product but the dream aspect behind it; reinforcing their purchasing decision, and remembering ultimately, that the shop is where the client can live the brand. It is essential to remember that one of the main factors of luxury, is the relationship the client has with it. The dream needs to be present. This human relationship is crucial, not only at one shop, but at every shop around the world. Luxury's main clients expect that the brand will recognize them no matter what store around the world they may be in. CRM technologies are making this easier to achieve.
Margiela | The Hermès Years
3) Quality + Distribution
The human hand adds soul. Quality is essential in a luxury product because in this world, the item should become more valuable over time. To be so durable, that it stands the test of time; which ultimately ends up being more meaningful. You can take a look at the Hermès Birkin for example which some people purchase due to investment purposes. Take a look at Birkins, gold, diamonds, Ferraris which have held the test of time. However, distribution and control is key here as well. In the book, an example of Lacoste polo shirts was discussed. Even if they are considered high quality due to their first rate long threaded cotton, excellent workmanship and its unique detailing, it can be found in more than 1000 boutique stores, and even sales point in department stores. The production house has also been relocated. Is this consistent with the luxury dream? Even if it is a high quality product? No. Distribution and control is vital. It keeps the dream and desire in the consumer alive. There is no exclusivity or feeling special when you see something everyone in the world has or is too easy to acquire. Distribution over merchandising, price, marketing, product policy, communications is key. The dream should stay alive. If it is an excess, it is not luxury. Luxury is to excessiveness as eroticism is to pornography. Luxury is not excess and excessiveness is not luxury.
If Ethics is not present in the supply chain of the brand, it is not considered luxury. A luxury brand has to offer a strong, transparent, ethical and virtuous supply chain. The purpose of luxury is to contribute to social peace and universal happiness. Alongside being an ethical brand (you will see more and more high end brands grasping sustainability soon as we see with Prada's Recycled Nylon campaign), the client experience needs to be up to a "luxury standard as well. From the moment a customer enters the store to the moment they exist, that whole customer journey needs to be up to par at every moment along the way. This includes making the consumer feel unique, special and catered to with a high degree of attentiveness, selling not only the luxury product but the dream aspect behind it; reinforcing their purchasing decision, and remembering ultimately, that the shop is where the client can live the brand. It is essential to remember that one of the main factors of luxury, is the relationship the client has with it. The dream needs to be present. This human relationship is crucial, not only at one shop, but at every shop around the world. Luxury's main clients expect that the brand will recognize them no matter what store around the world they may be in. CRM technologies are making this easier to achieve.
Margiela | The Hermès Years
3) Quality + Distribution
The human hand adds soul. Quality is essential in a luxury product because in this world, the item should become more valuable over time. To be so durable, that it stands the test of time; which ultimately ends up being more meaningful. You can take a look at the Hermès Birkin for example which some people purchase due to investment purposes. Take a look at Birkins, gold, diamonds, Ferraris which have held the test of time. However, distribution and control is key here as well. In the book, an example of Lacoste polo shirts was discussed. Even if they are considered high quality due to their first rate long threaded cotton, excellent workmanship and its unique detailing, it can be found in more than 1000 boutique stores, and even sales point in department stores. The production house has also been relocated. Is this consistent with the luxury dream? Even if it is a high quality product? No. Distribution and control is vital. It keeps the dream and desire in the consumer alive. There is no exclusivity or feeling special when you see something everyone in the world has or is too easy to acquire. Distribution over merchandising, price, marketing, product policy, communications is key. The dream should stay alive. If it is an excess, it is not luxury. Luxury is to excessiveness as eroticism is to pornography. Luxury is not excess and excessiveness is not luxury.
4) Hedonism matters more than functionality
Luxury and art share this aspect of hedonism and this is a stark contrast between premium and luxury brands. Where premium brands may prioritize functionality, luxury brands prioritize hedonism and creativity. For example: haute couture is elegant but not always comfortable nor practical, designer furniture can sometimes be uncomfortable and a luxury sports car can make loud noises. The aim of this product is not to be without defects, but to carry a creative soul within them that truly pleases their viewers. Art, for example, is more hedonistic than functional. It's aim is to be aesthetically pleasing rather than be practical. This aesthetic aspect is rooted and prioritized heavily.
Paul Jenkins, Untitled, 1972
5) Globalism
If a luxury brand cannot go global or appeal to some sort of segment in every continent, it is not a luxury brand. Kapferer discusses that it is better to have a small nucleus of clients in every country than a large nucleus in only one - in this way, a chance exists that the company may grow whereas in one country, the chance exists of that large nucleus disappearing completely.
Not only has Kapferer provided such insightful points on luxury and its world, but it is something every "luxury brand" can benefit from to this day. These five points provide a strong foundation into forming that ambiguous idea of what luxury is, its roots and the way it can transform our future. Vertical social stratification will ensure that luxury will continue to exist forever.
Last but not least, here are some fun anti-laws of marketing that are applicable only in the whimsical world of luxury:
.... and that's a wrap!
Luxury and art share this aspect of hedonism and this is a stark contrast between premium and luxury brands. Where premium brands may prioritize functionality, luxury brands prioritize hedonism and creativity. For example: haute couture is elegant but not always comfortable nor practical, designer furniture can sometimes be uncomfortable and a luxury sports car can make loud noises. The aim of this product is not to be without defects, but to carry a creative soul within them that truly pleases their viewers. Art, for example, is more hedonistic than functional. It's aim is to be aesthetically pleasing rather than be practical. This aesthetic aspect is rooted and prioritized heavily.
Paul Jenkins, Untitled, 1972
5) Globalism
If a luxury brand cannot go global or appeal to some sort of segment in every continent, it is not a luxury brand. Kapferer discusses that it is better to have a small nucleus of clients in every country than a large nucleus in only one - in this way, a chance exists that the company may grow whereas in one country, the chance exists of that large nucleus disappearing completely.
Not only has Kapferer provided such insightful points on luxury and its world, but it is something every "luxury brand" can benefit from to this day. These five points provide a strong foundation into forming that ambiguous idea of what luxury is, its roots and the way it can transform our future. Vertical social stratification will ensure that luxury will continue to exist forever.
Last but not least, here are some fun anti-laws of marketing that are applicable only in the whimsical world of luxury:
- Forget about positioning; luxury is not comparative.
- Does your product have enough flaws to give it soul?
- Don’t pander to your customers’ wishes.
- Keep non-enthusiasts out.
- Don’t respond to rising demand.
- Dominate the client.
- Make it difficult for clients to buy.
- Protect clients from non-clients, the big from the small.
- The role of advertising is not to sell.
- Communicate to those whom you are not targeting.
- The presumed price should always seem higher than the actual price.
- Luxury sets the price; price does not set luxury.
- Raise your prices as time goes on, in order to increase demand.
- Keep raising the average price of the product range.
- Do not sell.
- Keep stars out of your advertising.
- Cultivate closeness to the arts for initiate.
- Do not relocate your factories.
- Do not hire consultants.
- Do not test.
- Do not look for consensus.
- Do not look after group synergies.
- Do not look for cost reduction.
- Do not sell openly on the Internet
.... and that's a wrap!
No comments