Stevens, PA (PRWEB) April 10, 2005
The phrase Ânew luxuryÂ is tossed around a lot of late, often synonymous with Âmasstige,Â i.e. mass prestige, as it applies to affordable, new generation luxury brands like Starbucks, VictoriaÂs Secret and Panera.
However, the concept of mass-marketed luxury doesnÂt go far enough to explain the paradigm shift that is taking place in the luxury market today. ÂThe real shift in the luxury market is a change in the way consumers define luxury. ÂOld luxuryÂ is defined by the attributes, qualities and features of the product, and usually refers to heritage brands that charge a premium, such as Mercedes, Christian Dior, and Cartier. ÂNew luxuryÂ defines the category from the point-of-view of the consumer,Â
ÂBased on new research conducted by Unity Marketing, luxury consumers focus on the experience of luxury embodied in the goods and services they buy, not in ownership or possession itself. So Ânew luxuryÂ is about the experience of luxury from the consumersÂ perspective, while Âold luxuryÂ remains focused on the traditional, product-based definition of luxury.Â
Research and Markets (http://www.researchandmarkets.com/reports/c15425) has announced the addition of Luxury Brands & Their Role in Luxury Purchases Luxury Tracking Report & Analysis, 1Q2004 to their offering.
Two ways to define luxury: intrinsically and consumer-centrically
In the old luxury world view, luxury is defined as the special qualities, features and attributes intrinsic to a product. In most categories, whether fashion, automobiles, furniture, linens, jewelry, or tabletop, specific product features constitute luxury. For cars itÂs handling and ride, leather seats and wood detailing; in jewelry, platinum and real gemstones; in linens, 500 thread- count sheets, Egyptian cotton, etc. Here the product expresses or incorporates features that confer the Âbest of the bestÂ status. Many old luxury companies stop here, focusing their resources only on creating the ultimate product.
New luxury companies recognize that the intrinsic definition of luxury does not reflect the changes taking place in the luxury market today. ÂNew luxury companies recognize the need to incorporate consumer experience and perception into the luxury branding equation. They begin by offering the Âbest of the bestÂ quality, but go that extra step to deliver not just a great thing, but a wonderful experience to the customer,Â
Luxury companies like Tiffany, Godiva Chocolatier, Saks Fifth Avenue, KitchenAid, Sub-Zero are attuned to this new experiential luxury paradigm.
In recent focus groups new luxury was described as:
Â Quality is in eyes of beholder. We often associate quality with expensive, but it doesnÂt necessarily have to go hand in hand. Sensual experience, massage, wonderful dinner, travel, a treat, something very special you do for yourself.
Â A state of mind, being able to do something that I couldnÂt do before.
Â Luxury means I can live my life in a way that I donÂt have to worry about money. Luxury doesnÂt mean labels. It means comfort. If I want to go somewhere and I am able to do it, that is luxury.
Â Luxury to me is not a necessity, but a privilege. It means to be able to do things in regard to services, time, material things.
Â The most luxury ever is to have enough time to do whatever you want and be able to afford it.
Â I buy what I like and what I want. It is nice to have that feeling that you can do what you want when you want it.
ÂWhen we talk about luxury from the consumersÂ experiential perspective, the brand becomes irrelevant. What matters is how the brand delivers the luxury experience it promises ÂIn other words, Âold luxuryÂ is about the thing (i.e. a noun), while Ânew luxuryÂ is about the consumer experience (i.e. a verb)Â
The first issue of Luxury Tracking Service Results focuses on the importance of branding in the luxury market. Do consumers demand higher expectations from luxury brands?
Purchasers of the 1Q2004 results, will also have access to The Consumer Luxury Consumption Index. The luxury consumption index is a tool prepared to help luxury marketers assess the vitality of the affluent market.
After ending 2003 on a high note, luxury consumers stepped back slightly in their overall confidence with the March 2004 Luxury Consumption Index at 97.8, compared with a baseline of 100 in January.
ÂLuxury consumers started the new year feeling very positive about their financial well-being, but that moderated during the first quarter 2004.Â ÂThe luxury consumersÂ expectations for future spending on luxuries dipped in relation to their ability to spend.Â
For more information visit http://www.researchandmarkets.com/reports/c15425
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