Based on the Journal by Yuri Seo and Margo Buchanan-Oliver It talks about the Luxury Industry, Past Trends and Future Conceptualisations

1. The Industry, Trends and Future Conceptualisations
A Journal by Yuri Seo, Margo Buchanan-Oliver
LUXURY BRANDING
Submitted By:
Anusha Seethepalli
Harshit Mahajan
Shaminder Saini

2. The Abstract
Purpose
• The purpose of this paper is to examine the emergence of a global luxury brand industry and discusses previous
conceptualizations of luxury brands. In this endeavor, the study illustrates the unique context of luxury consumption, to
highlight several developments in extant literature, and to advocate for the advancement of the consumer-centric
paradigm of luxury branding.
Design
• The study reviews the emergence of a global luxury brand industry, discusses macro-environmental trends that have
influenced luxury brand consumption, critically evaluates the existing literature on luxury brands, and offers directions for
future research.
Findings
• The study highlights that luxury brands have emerged as a special form of branding that conveys the unique sociocultural
and individual meanings to their adherents. Moreover, it was found that these meanings have been shaped by a number
of important cultural, social, and external trends, which call researchers and practitioners to consider the consumer-
centric paradigm of luxury branding.
Originality/
Value
• The study calls for a shift in the focus from the characteristics of luxury brands per se, and towards phenomenological
experiences and socio-cultural influences, in the pursuits to understand what brand luxury conveys in the broader context
of post-modern consumer culture. The study offers two distinct areas for future research to address these developments.

3. Luxury - As Old As Humanity
• Early essays on the meaning and social functions of luxury had already been written in
ancient Greece .
• However, the idea of “luxury brands”, as a special form of branding and a cultural force
behind fashion and an affluent consumption lifestyle, is a relatively new concept.
• Before 1990s there was a group of small, artisan family-owned businesses that
emphasized premium quality and the aesthetic value of their goods.
• After 1990s these a consolidated economic sector led by powerful brand-driven luxury
corporations. These corporations (e.g. LVMH, the Gucci Group, etc.) made substantial
investments in strategic management, product design, marketing, and retail capabilities in
order to build and maintain the luxurious appeal of their brands .

4. Luxury Brand - Definitions
An exclusive group of brands across different product segments that are distinguished from
the rest by their ability to convey certain elements of consumer-perceived characteristics of
luxuriousness and thereby connote luxury in their respective product categories
(Vigneron and Johnson, 2004)
In order to qualify as a Luxury brand, a brand must: sit within a tier of a product category that
seemingly demonstrates price insensitivity; show that being expensive is of neutral or even
positive impact to its image; demonstrate that perceived price plays a minor role amongst
drivers of purchase
(Interbrand, 2008)
“

5. Brand
THE

6. Burberry Beverley Hills Polo

7. Louis Vuitton Timberland

8. Rolex Maxima

9. Rolls Royce Peugeot

10. SocialCultural External
Macro-Environmental trends have influenced the consumption of luxury brands
and they can be divided into below three categories:
Trends Influencing Luxury Brand Consumption

11. • Globalisation and multicultural influences has resulted in rise of global luxury brands like Gucci,
Louis Vuitton, Prada by consumers in Asia, BRIC, CIVETS and other developing countries.
• As a result of this trend, customer base for luxury products is becoming more culturally
diversified, bringing new opportunities and challenges for the managers of luxury brands.
• The growing popularity of Luxury brands in emerging markets seems to make the consumer tastes
similar around the world like perceived prestige, aesthetic value and an affluent lifestyle.
• However, the luxury consumption styles of these emergent markets are different than that of
established markets.
Luxury
Consumers
Europe
Old people,
High
disposable
income
America
Young,
Experimental,
Not Brand
Loyal
Japan,
South Korea
Fashionable,
Label-Consicous
Cultural Trends

12. • A cross-cultural study of luxury across 20 different countries conducted by Dubois, identified
three types of attitude towards Luxury Consumption:
ELITIST
• Luxury is
appropriated for
only a very few, that
is the Elite.
DEMOCRATIC
• Luxury should not
be reserved for
‘refined people’
• Luxury should be
widely accessible
and mass-produced
DISTANT
• Consumers are not
attracted to luxury
goods
Cultural Trends: Three Types of Attitude towards Luxury Consumption

13. • In earlier times, Luxury items
were consumed by wealthiest
sections of the society to display
wealth and social status.
• But, the industry is experiencing
a rapid expansion of its customer
base to include more social
classes.
• The recent social trend in luxury
consumption is
“Democratisation of Luxury”.
• Wealthy Consumers perceive
Luxury as “Social Badge” while
for Middle and lower classes it is
like a self-reward or a prize.
Social Trends
Emulate
Lifestyle
Of Rich People

14. Luxury
Gourmands
• High Net Worth Individuals
• Wear Designer Labels from head to toe, 24X7
Luxury
Regulars
• Affluent Individuals with financial assets in excess
of US $100,000
• On a staple diet of Luxury Goods
Luxury
Nibblers
• Well educated young people with decent jobs
• Partake in a few small bites of luxury goods every
season
Social Trends: Three Social Segments of Luxury Consumers

15. How Celebrities Indulge
in Consumption of
Luxury Brands
Inspire their Fans and
other mass consumers
Consumers Emulate the
affluent Lifestyles of
Celebrities
Increasing attention that luxury brands
receive from the media
The growing popularity of internet
shopping
Increase in International Travel
External Trends

16. Key Approaches Used to Understand Brand
Luxury

17. Consumer motivation for purchasing luxury brands was often attributed to “conspicuous
consumption”.Motivation
Status-seeking consumers use luxury brands as a means to achieve a desired impression on
others through brand symbolism.Goal
The more conspicuous the brand, the greater is the respect that can be obtained through its
consumption.Rule
Status-seeking consumers are more drawn to global brands, and the leading luxury brands
generally have a worldwide presence.Presence
Luxury brands communicate the prestige, status, and role position of their users.Communication
Though Luxury brands charge premium prices, they do not compromise demand as the
premiums imply the exclusivity of brand and thus increases a product’s “upmarket” appeal.Premium
Luxury brands as Conspicuous Goods

18. Consistent
Delivery of
Premium Quality
Heritage of
Craftsmanship
Recognizable
Style or Design
Limited
Production
Emotional
Appeal
Global
Reputation
Association with
Country of Origin
Uniqueness
Personality and
Values of Creator
• With democratisation of luxury and rise of global brands in emerging markets, Luxury brands have
acquired a range of new roles other than being simply social markers of prestige and status.
• Consumer perceptions of luxury brands have become more complex and diverse.
By Nueno & Quelch
Multidimensional constructs of Brand Luxury - Firm Centric Approach

19. Keller’s Ten
characteristics
of identifying
Luxury Brands
Maintaining a premium image for luxury brands is crucial. Controlling that image is thus a priority
Luxury branding typically involves the creation of many intangible brand associations and an
aspirational image
All aspects of the marketing programme for luxury brands must be aligned to ensure quality
products and services and pleasurable purchase and consumption experiences
Brand elements besides brand names – logos, symbols, packaging, signage, and so on – can be
important drivers of brand equity for luxury brands
Secondary associations from linked personalities, events, countries and other entities can be
important drivers of brand equity for luxury brands
Luxury brands must carefully control distribution via a selective channel strategy
Luxury brands must employ a premium pricing strategy with strong quality cues and few discounts
and mark downs
Brand architecture for luxury brands must be managed very carefully
Competition for luxury brands must be defined broadly as they often compete with other luxury
brands from other categories for discretionary consumer dollars
Luxury brands must legally protect all trademarks and aggressively combat
Multidimensional constructs of Brand Luxury - Firm Centric Approach

20. Vigner and Johnson brought in the consumer-perceived value model to differentiate
between luxury and non-luxury brands.
Non-Personal Orientated Perceptions Personal Orientated Perceptions1. Consumers purchase luxury items as a means of asserting prestige and status.
2. Limited supply of a luxury brand enhances consumer preference for that brand
because it is perceived to be more exclusive and valued.
3. Expectation that luxury brands offer superior quality and performance over non-
luxury brands.
4. Ability of luxury items to evoke emotions such as pleasure and a sense of
achievement.
5. Consumers often integrate the symbolic meaning of luxury brands into their own
Conspicuousness Uniqueness Quality Hedonism
Perceived
Extended
Self
Multidimensional constructs of Brand Luxury - Consumer Centric Approach

21. • Luxury brand experiences offer an important way of enhancing the value derived from luxury
brands.
• Hedonic nature of luxury brands provides consumers with an experience of sensory gratification
that is unobtainable from non-luxury brands.
• Consumer experiences are crucial to a luxury brand’s marketing communication process
• Atwal and Williams, provided a typology of consumer experiences which includes Involvement
as “the level of inter-activity between the supplier and the customer”, and Intensity as “the
perception of the strength of feelings towards the interaction”.
Luxury Brand Experiences

23. Future Approaches for Luxury Brand
Conceptualization

24. Growth Factors
Transformation from family
owned businesses to global
luxury conglomerates
Favourable macro
economic trends
Future Trends
“Interpretivist” approach-
Repositioning focus of
research
Customer centric paradigm
shift- Co-author and co-
create brand

25. • Earlier studies focussed on
• Producing findings based on pre-determined quantitative frameworks
• Missed out on deriving insights
• Value of a brand offering is determined by time of use, rather than time of
exchange
• Focusses on post-purchase behaviour
• Customers individualise perception of luxury brands
Luxury Brand Value in Use

26. • As per traditional view
• Brand meaning was ascribed to effects of brand identity
• Firm centric brand identity
• As per modern approach, brands are contextual and constructed by joint
activities of marketers, consumers and socio-cultural environment.
• Brand meaning is a dynamic process formulated by consumers and managers
influenced by conflicting cultural trends.
Brand Culture

27. Brands convey unique socio-cultural and individual meaning
Brands offer a reference of good taste, not just objects
Shift in focus - characteristics of luxury brands towards phenomenological,
socio-cultural influences
Conclusion

28. THANKS