The Luxury Sector

Previously reserved to happy few, since 20 years, the luxury market has become more accessible. More than one European by two has bought a luxury brand within the last 12 months.

This sector is represented by 20 000 companies and more than 125 000 employees.

There are three kinds of luxury: the inaccessible one, the intermediary one and the accessible one.

This very targeted and poor distribution market is characterized by products and services of excellent quality: uniqueness of its material (ex: diamonds, gold), artisanal and meticulous touches in order to reach the perfection. This characteristic may explain the very high price of these products: for that matter, the customers would not be willing to buy a luxury product for a lower price. Furthermore, the offer and the demand are scarce: products are not selled in supermarkets as the principle is that they should not be owned by too much persons. A too much important distribution is harmful to the product’s image. Moreover, these beautiful creations are appealing all the senses as they are pleasant for the touch, the taste, the view, the smell and the sound. The luxury brands also have a privilege with the past and its customs. They use on the present the modernity across the traditions from this past.

The classic luxury refers to a workshop whereas the modern luxury refers to the publicity space like a shop. The virtual space is not really yet used (only for creativity demonstrations). In this sector, the place and atmosphere of the shop is more important than the surface area.

These luxury products and services mainly are the below ones:

▪ Trend products (ex: haute couture, leather goods, jewelries) ▪ Perfumes ▪ Cosmetics ▪ Automobile ▪ Wines and Spirits ▪ Hotel Business ▪ Catering

The luxury brands are well-known to present different marketing strategies:

The intuitive marketing is used for the inaccessible luxury