The fundamental differences between “premium”, “fashion” and “luxury” with great in-depth case studies of successful business models.
brand, management, strategy, identity, positioning, market, competition, customer, loyalty, communication, advertising, promotion, reputation, influence, perception
The Luxury Strategy “Break the Rules of Marketing to Build Luxury Brands by Jean-Noel Kapferer and Vincent Bastien is a seminal text that establishes the blueprint for the development and management of luxury brands. Let's delve into its insights. Kapferer and Bastien, both leading voices in the world of luxury brand management, argue that although traditional marketing principles might work fine for mass brands, they are ill-suited for the luxury industry. Why, you ask, because luxury operates on different consumer desires, focused on dreams and status rather than utility and necessity. The authors postulate that you can't just make a premium product and label it luxury. It requires an understanding of the anti-laws of marketing. Here, they break down the general rules of marketing by tweaking, twisting, and sometimes even wholly discarding to cater to a niche, highly discerning clientele that seeks exclusivity. Let's explore uniqueness, a vital element of any luxury brand. According to Kapferer and Bastien, a true luxury brand should be careful about maintaining its rarity. Consider a limited edition Hermes bag or a custom-made Rolls Royce. Their value lies not just in their price but their exclusivity. The strategy here isn't about expanding or mass production, it's about managing scarcity. They go on to discuss heritage as a key facet of luxury brands. Most luxury brands have a storied history, which helps bolster their appeal and perceived value. Storytelling, then, becomes an essential part of a luxury brand strategy. It's not just about selling a product, but selling a part of that brand's legacy, and in doing so, offering consumers a chance to be a part of that narrative. The text touches on the pricing strategies adopted by luxury brands. Unyielding on price is another crucial rule that the authors articulate. In a striking departure from mass market strategies, genuine luxury brands refuse to go on sale. Rather, they often embellish their status by raising prices even higher. This strategy creates and maintains an aura of prestige, reinforcing their exclusivity. Kapferer and Bastien remind us that focusing on innovating the timeless, preserving the allure, and not on the market share battle is central to the idea of luxury. They emphasize that treating the customer as a guest rather than a target heralds a new approach to customer relationship management unique to luxury brands. Lastly, they touch on the importance of aesthetics and sensory rich experiences. Luxury brands aren't just selling products or services, they are selling experience. Therefore, everything from the product itself to the ambiance of the retail store to the meticulously crafted unboxing experience contributes to creating a holistic and opulent luxury brand experience. Kapferer and Bastien's The Luxury Strategy provides a captivating delve into the paradoxical world of luxury branding. This podcast version can offer a roadmap for those looking to navigate the world of luxury brand management. Its insights go beyond simple marketing strategies, shedding light on the unique, idiosyncratic, and often elusive nature of luxury. The essence, as the authors argue, is in understanding and articulating the desirable difference of what true luxury offers.