THE PRICE IS PERCEIVED AS EXCESSIVE IN RELATION TO THE GENERIC CATEGORY.
Price: The higher the price the more desirable the object.
Communication & Promotion: Sometimes there is no advertising
Scarcity: Restricted in quantity, (sometimes the unique object)Distribution: Perception of very few retail outlets of ten restricted access to shops.
CRM: Very close attention to individual client.
Production: The hand of the craftsman or artist is the privileged means of production. The means of production is pre-industrial, pre-capitalist.
Function: The psychological and social function of luxury goods is more important thantheir practical function. They are perceived as superfluous.
Time: Often the client is kept waiting (2 years for a Birkin bag from HERMES, 1 year for certain PORCHE MODELS, 6 months for hand made shoes from JOHN LOBB).
The unique hand-made luxury object is a reflection of the client’s ideal self. Narcissist.
Luxury objects are often perceived as timeless. (Chanel N5over 80 years old), no life cycle. Age adds value to luxury. The DNA or genetic code of classic luxury brands does not change. Past: very often there are allusions to a vanished past (nostalgia)
Competition: Often there is no competition (especially in Inaccessible).
A new model of ROLLS ROYCE is determined by the genetic code of the brand.
To counterfeit, to fake, to forge, a fake Picasso different to genuine.
Counterfeiting destroys the paradoxes of luxury.
Loss of market share
Increases the demand for counterfeit goods.
But Inaccessible luxury is not affected, and certain niches (art, gold) are considered safe investment.
11September 2001, a feeling of national and social solidarity in USA faced with an outside hostile force.
Down Market / Brand Stretching:
CADILLAC launched the Cimarron model in the 1990’s costing less than half the price of top luxury models the car was a failure and withdrawn.
Traditional customers felt betrayed and target group did not buy the Cimarron.
Luxurygoods are culture-bound (= intimately associated with a national culture of which they are seen as a supreme expression generating feelings of national pride.)
France (Wine, Food, Fashion, Jewelrx)
Switzerland (Watches, Financial services)
Spain (Ham = Pata Negra)
Italy (Fashion, Cars)
Great Britain (men’s fashion cars)
France: Feminine Paris-based =The chic rich Parisiennes are the class of reference.
Great Britain: Masculine (fishing rods, shooting guns). Aristocracy, Gentleman Farmer in the country side and not in London.
Discreet: Often the label / Logo is not visible.
Italy: Unisex = Italians are very big consumers of accessible luxury brands.
=> Preference for national brands.
Conspicuous consumption = The Label / Logo mustbe visible.
Japan & China: Must be European conspicuous consumption.
Middle East: Very conspicuous, watches, Jewelry, Cars.
Germany Scandinavia: More interested in quality discreet, good market for British luxury.
U.S.A: Very varied depending of region (new England, New York, Florida, Texas, California).
SYMBOLIC AUDIENCE =
> 99% of readers of “Propriétés de France” earn <6,000 Euros a month.
They cannot afford the properties advertised.
They are buying a symbolic entrance ticket into a social world from which they are in reality excluded.
REAL AUDIENCE =
< 1% readers can afford the properties.
The object that is ADVERTISED is not the object that is BRANDED. The inaccessible luxury object radiates out by...