Although Western economies have not yet transitioned out of crisis, the luxury sector is growing again, especially at the high end. In emerging nations, the extravagance sector's growth has reached double digits. Yet, as high-end products continue to penetrate global markets, the stature of brands like Louis Vuitton has not dropped whatsoever. This seems at odds with the concept of luxury being tied to rarity and exclusivity.
As a way to capture building demands-not only from people that are outstanding, but also from normal individuals - luxury brands assemble themselves as artwork, enact virtual rarity tactics, and embrace a fashion business model while deemphasizing exceptional quality and country of origin. Rarity of craft or ingredients has been replaced by qualitative rarity. Further, the rage of the designer is a powerful tool in building mental links with a huge variety of customers. Now, brands in the luxury sector are actually selling magic and symbolic power to the masses. There exists a culture gap between the West and Asia; namely Asian consumers feel safer buying esteemed Western brands with which people around them are familiar. The insights offered herein provide clues for entrepreneurs trying to establish luxury brands.
PUBLICATION DATE: September 15, 2012 PRODUCT #: BH489-PDF-ENG
This is just an excerpt. This case is about SALES & MARKETING
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