History of luxury
Back in last century the hyper luxury brands perceived as a thing not for everybody— but just available to exclusive circle of the customers. With striving economy & consumers being inspirational we have seen lots of hyper luxury products making themselves available to the broader audience through brand extensions and new brand lines that are offering affordable pieces of the luxury products.
Luxury today appears to be democratized —past decade have shown strong growth in the luxury products, with the new product lines for more mainstream costumers, as well as brands such as Burberry or Tiffany’s approaching the broader customer base. And these killing sales models-based on the real affluence and real exclusivity. Therefore making price the relevant element in marketing —and new marketing channels such as e-commerce has taken a strong role. Think about all luxury goods that are offered on ebay.
Is price relevant measurement for the Hyper Luxury Products?
Interbrand has published the study on “Leading Luxury Brands 2008” — and picking fifteen brands, which submit to the definition of hyper luxury products— that includes “expensive or positive impact to the image” and the “perceived price has very low role among the drivers of purchase”. Thus price is very important factor for the luxury brands — and they have to be little expensive to offer the luxury. Cutting this price as well as doing sales seems to be step out of luxury category. With growing mainstream client base being who are in charge for the strong sales figures — cost obviously has become significant element.
