By Sajag Karki

Luxury Brands

In this world of commercialization, luxury is more of an affluence or prestige factor than anything else.

The concept of luxury has been around in various forms since the beginning of civilization. People were fond of novelty items reflecting their obsession for vanity. Items such as perfume, jewelry, premium watches, and fine whisky were considered luxury. Such products or services are not considered essential and are associated with affluence. The case is no less different today as people are still lured towards new and unusual things that give them a sense of vanity. The only notable difference is that the novelty items in the past were generic whereas today they are branded. It’s a want rather than a need and luxury brands have been successful in catering to this niche audience. Brands such as Mercedes, BMW, Ritz Carlton etc are almost synonymous with luxury.

Upon understanding the basic product types in marketing, there are three product levels: core, basic and augmented. The core product is the basic benefit that it provides. The actual product involves the features, design, brand name etc. The augmented product gives customers something extra such as luxury which customers indulge in as vanity. An example could be high quality leather seats and dashboard for the Mercedes. Such luxury products need special purchase efforts like ordering in advance or special instructions for additional features. It also has high price and fewer purchase locations which makes possessing such products an act of self esteem. Lamborghini and Rolex are targeted at deep pocketed clients who wish to purchase expensive goods and relate to them as having better quality and signifying luxury.

 Branding of luxury goods have some basic principles which are: equating luxury with life experiences, implied level of unparallel customer service, attention to detail and loyalty benefits. Rolls Royce, for example, has created a cult status of a super luxury automobile brand as they themselves choose their clientele based on one’s status in the society. It is not one of those cars that you can walk in to the showroom and buy. In India, only a handful of high profile personalities like Amitabh Bachchan and Sachin Tendulkar have been chosen worthy to own a Rolls Royce. Hence, it is not just a matter of money but also a prestige awarded by the company for reaching an unprecedented level that meets the high standards set by the company. In a survey conducted by Forbes, some of the most desired luxury clothing brands are Gucci, Christian Dior and Giorgio Armani among others.

However a term coined “mass luxury” has already begun to keep pace with luxury brands diversifying their products to meet the desires of middle class as well. BMW and Mercedes can be termed as mass luxury as anyone with money can buy it. Similarly, top hotels and airlines also have started mass luxury in order to sustain in the market. Five-star hotels with special discounted packages and airlines adding services in the economy class are all signs of mass luxury.

In this world of commercialization, there is a saying “if you’ve got it, flaunt it” so luxury is more of an affluence or prestige factor than anything else. For those looking for all these, luxury brands could be a solution to all their desires.
 

Karki can be reached at sajag_karki@hotmail. com. The article is based on research and author’s practical experience as a marketing and advertising professional.