The Business of Luxury

The global luxury market continues to be a growth opportunity for all three major business sectors – Personal, Experiential and Transportation – generating $1.4 trillion annually.

Definition of Luxury

Rarity

Luxury is not democratic. By definition, it is exclusive, rare and limited or it becomes a mass affluent product. Luxury products aggressively restrict when, where and how they are made, sold and to whom. This controlled and limited availability adds to its desirability.

Excellence

Luxury never negotiates on quality. No concession is ever made on materials, craftsmanship or standards, which are unflinching. Excellence is not fleeting or variable. It is earned and consistent.

Expensiveness

Just because a produce is expensive does not mean it is a luxury product. But conversely, all luxury products are expensive. Expensiveness intensifies rarity and gives reason to believe that the product delivers on excellence.

Timelessness

Luxury is timeless. It has a past. Even if manufactured through communications. It is also immortal because it leaves a lasting, indelible impression.

Honest

Luxury is honest. It is not synthetic or reproduced. It cannot be duplicated. It is simple. It does not try too hard. It attracts rather than shouts.

Tailored

Luxury feels bespoke even if it is not. Luxury instinctively knows what its perfect customers want often before they do. So good are luxury products at this magical skill that everything feels specifically designed and, ultimately, unique.

Pleasurable

Luxury is pleasurable, whether rational (tactile) or emotional: possessing an object that elicits envy, status or power.

Experience

Luxury is an experience and not just an object. It is about the little things that leave an outsized impression. Components of experience include high-touch service – or how luxury is delivered, packaging (an objects context which provokes a powerful first impression of what is to come), store environment and sales staff (the store’s design, ease of layout, the staff’s education, a personal style and comportment must match the object being sold.

Source: Luxury Daily; Beau Fisher, The Gate, 2014