Most Important Concepts

• Luxury is not an extension of traditional marketing strategies (premium); it operates on its own unique principles.
• Luxury brands must differentiate by uniqueness, not by comparison.
• Luxury brands should aim to create value, not reduce costs.
• Luxury goods carry an intrinsic world linked to history, culture, or craftsmanship. Preserving and leveraging this heritage is essential.

Action Points

Chapter Recap

Introduction

Part 1 - Back to luxury fundamentals

1 - In the beginning there was luxury

• The concept of luxury is not a socially neutral one.
• Growth in luxury goods has been driven by
  • Democratization
  • Increased spending power
  • Globalization
  • Communications
• A luxury product carries a whole world within it. Therefore, it has to be produced at a place that is consistent with its world. Premium products may seek out the most economical manufacturing location, but not true luxury.
• Once people have tasted luxury, it is very difficult for them to turn away from it. The non-return effect.
• The word ’Luxury’ has deeper meaning than just ’Money’

• In art, as in luxury, it is virtually impossible to get a consensus among all peoples. And, you should also never seek this consensus, or you risk losing your magic, and with it the people who do love you.

2 - The end of a confusion: premium is not luxury

• Premium is the upwards extension of traditional marketing strategies, but luxury obeys other laws.
• Definition of luxury:
  • Qualitative experience or product, made to last.
  • Price far exceeds its mere functional value.
  • Tied to a heritage, culture, or unique know-how.
  • Restricted and controlled availability.
  • Personalized accompanying services.
  • Represents a social marker.