Luxury means something different today that it did yesterday. What companies need to know to sell into the luxury market.
I recently read a really insightful article by Pam Danziger called “The Six Myths of Luxury Branding – How to Build a “New Luxury” Brand. It’s definitely worth a read but what I got out of it pertains more specifically to the consumer products market where I spend most of my time. The premise is that luxury consumers are exhibiting purchasing habits in line with a new emerging set of values and preferences. They are moving away from conspicuous, status driven consumption and towards more experiential and socially responsible spending. What defines status itself is changing and becoming less about what you have and more about what you do and how you express your values in the choices you make regarding things like travel, your car and the products you buy.
Luxury consumer products companies can remain relevant within this market by clearly articulating and practicing a set of core values that are in line with this new luxury consumer. Clearly demonstrated social and environmental responsibility is critical, as is a willingness to become part of a broader values driven change in our consumption habits. Meaning and significance are of growing importance in the luxury equation so be certain to make them an authentic component of your brand.
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