What are the guidelines for luxury communication?
Be vague enough to allow personal interpretation, artistic and highly coded, maintain style over time, be indirect, allusive, and keep reactivating legends.
How does luxury communication nurture the brand's universe?
By ensuring stability of aesthetics, respecting the brand’s semantic constants, and creating strategic and aesthetic coherence
What are the key components of luxury distribution?
Multisensory experience, excellence, aesthetics, beauty, innovation, design, and maintaining the awareness-access balance.
What challenges does luxury face in distribution?
Location, globalization, service excellence, personal relationships, and highly qualified salespeople.
What are the different modes of luxury distribution?
Own brand stores, exclusive distribution, selective distribution, at home, online, and omnichannel
How does digital technology impact luxury distribution?
Through e-commerce platforms, social media and influencer marketing, virtual and augmented reality, data analytics, and mobile apps and loyalty programs
What are the key differences between luxury and digital approaches?
Cultural openness versus selectivity, speed, space, and generational differences.
How do luxury brands use digital strategies to respect the fundamental luxury equation?
By maintaining virtual rarity, managing price strategically, using digital to connect one-on-one, excelling in service, and initiating new consumers to the brand.
What drives international expansion in the luxury industry?
Globalization, increased demand, brand building, diversification of risks, access to talent and resources, and localization
What are anti-laws #5 and #6 related to luxury pricing?
- #5: Luxury sets the price, price does not set luxury.
- #6: Increase the average price to grow demand
What is the elasticity coefficient of luxury goods, and how does it affect demand?
It measures the responsiveness of demand to price changes; luxury goods typically have a low elasticity coefficient, meaning demand remains stable even with price fluctuations
How do Veblen goods differ from typical goods in terms of price and demand?
Veblen goods experience increased demand as their price rises due to their status symbol and conspicuous consumption characteristics
What are some sustainability initiatives luxury brands are adopting?
Ethical sourcing, transparency and traceability, embracing circular economy principles, offering repair and refurbishment services, and designing for longevity.
How does Chanel’s use of iconic products like No. 5 illustrate the balance between heritage and modernity?
Chanel maintains the product unchanged to preserve heritage while updating the muse role to keep the brand relevant
What distinguishes luxury from being merely high-priced or expensive?
Luxury is characterized by attributes such as sophistication, exclusivity, rarity, high quality, nobility, artistry, creativity, value, strong aesthetics, excellence, craftsmanship, and iconic status, beyond just being high-priced or expensive
How does premium differ from luxury in terms of functionality and scarcity?
Premium focuses on functionality and is less scarce, while luxury is more about the desire, dream, and symbolic value, and it shapes taste rather than being developed according to consumer needs
What is the significance of luxury anti-law #4 and #10?
Anti-law #4 states not to pander to customer wishes, meaning the brand maintains its identity and long-term vision without compromising to meet customer demands.
Anti-law #10 warns against seeking consensus, emphasizing that luxury brands should maintain their unique identity and not conform to mass appeal.
How does the luxury marketing mix differ from the classical marketing mix in terms of product and service experience?
The luxury marketing mix emphasizes product and service experiences that are indivisible and deliver excellence, focusing on both intrinsic (tangible) and symbolic (intangible) values
What role do luxury “cathedrals” play in the distribution strategy of luxury brands?
Luxury “cathedrals” serve as fundamental multisensory touchpoints, executing the brand universe and creating symbolic value, requiring coherence, strategic rigor, and excellent execution
What are the implications of selective distribution in luxury?
Selective distribution maintains exclusivity and brand image by carefully choosing distribution channels, locations, and partners
How do luxury brands ensure excellence in their distribution channels?
By emphasizing craftsmanship, quality, heritage, and offering limited editions and exclusivity, luxury brands ensure excellence in distribution.
What challenges do luxury brands face when integrating digital strategies?
Luxury brands face challenges such as cultural shock, speed, space, and generational differences when integrating digital strategies
What strategies do luxury brands use to penetrate emerging markets without losing their exclusivity?
Luxury brands use selective distribution, open flagship stores in cosmopolitan areas, and create limited edition products to penetrate emerging markets. They also employ extensive communication
Explain the concept of "qualitative rarity" and its significance in the luxury market.
Qualitative rarity refers to the perception of exceptional quality and uniqueness created through craftsmanship, cultural references, and high production standards. It goes beyond physical scarcity and is essential for maintaining the allure and desirability of luxury products in a growing market.
Elelemts of Luxury: Substance and Symbol
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