This deck details the trend, “The Redefinition of Luxury” It looks at how the concept of luxury has changed for the middle-class consumer over the years and the brands that are doing a great job of reaching their customers in this way. www.linkedin.com/in/anyacgonzales/

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The Redefinition of
Luxury
By Pamela Ross & Anya
Gonzales

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 This deck details the trend, “The Redefinition of
Luxury”
 It looks at how the concept of luxury has changed for
the middle-class consumer over the years and the
brands that are doing a great job of reaching their
customers in this way.

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Luxury In A Bygone Era
 Exclusivity
 Craftsmanship
 High-quality
 High Status
 Very, very Expensive

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But Today, Luxury is Different
Why?
 Recession
 Mass class of wealthy people
 Wide range of luxury brands gives choice
 Decreasing luxury-brand loyalty

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Biggest Factor = Recession

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The Outcome of the Recession
 Income decreased
 Retention of budgeting behaviors
 Less spending in several key areas like dining out
 Less money to spend on big ticket items like vacations
 Quitting current luxury habits
 Comparing price before purchases

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How Does This Affect Consumer
Behavior?
People still wanted to indulge but with
tighter budgets they started to look for
more innovative ways as adding luxury.

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In 2014
 There is bit more confidence in the economy.
BUT

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How Has Luxury Changed?
 There is a shift in products & services and sometimes a shift in
brands

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Changes to Luxury as a Category
 Trading-down & Trading across
 Mass Premium
 Massclusivity
 Democratization of luxury brands
 Affordable luxury
 Bridge Brands

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What Do These Changes Mean?
 Indulgence at a ‘lower altitude.’
 The mini-indulgence concept is relevant.
 Successful brands are providing luxuries in small fixes. In
many cases luxury = experience
 Consumers will rather trade-down than do without.

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What should the value- and
premium-minded consumer do?
Think small, and think creatively.
“Consumers can have their cake and save
money too – they might just need to opt for a
cupcake instead of a layer cake.”

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Real-World Applications
Clothing
Food & Beverage
Accommodation
Jewelry
Luxury as an extension of the brand

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Clothes — Vera Wang for Kohls

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Clothes — Vera Wang for Kohls
 “Simply Vera Wang”
 Offers quality clothes with the Vera Wang Brand attached.
 “There are so many signature kind of Vera details. Her
[ruching] and beading and appliques, and the netting that
…makes it look really high-end."

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Food & Beverage — Club W

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Food & Beverage — Club W
 Ups the experience through profiling your palette.
 Customer receives 3 or more bottles of wine each month
 If you do not like any wine, you can return it for a different
bottle.

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Accommodation — Hotel 32

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Accommodation — Hotel 32
 Has the amenities and experience of $750/night hotel at
$170/night.
 No butlers but each floor has its own “Suite Assistant”.
 Check-out and check-in times are shorter
 “Don’t you just LOVE HOTEL 32?” Of course my answer
was yes.

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Jewelry — “One-Off Jewels”
 Re-polishes childhood memories into grown-up accessories.
 You don’t have to spend a lot of money to get a piece of
jewelry with meaning.
 The luxury of giving yourself a gift; the expectation of waiting
for your jewelry to arrive
 Gold or Silver Plated.

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Jewelry — “One-Off Jewels”

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Luxury as a Brand Extension
 Applying luxury to any brand.
 Any brand can learn to add luxury to their brand.
 Any brand can find their core element of differentiation and
repackage that as luxury to their customers.
 E.g. David’s Tea and the luxury of having fun with fewer
calories. Birthday Cake Tea anyone?

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David’s Tea — Indulge Without the
Candy Store

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Thank you
Questions or Comments?