Luxury is not the amount on your account but it is a state of mind. It is a kind of idea, which reflects the idea of democracy, social harmony, the realization of worshipping values and the human relationship with the divine. Every man knows what is luxury, but for everyone it means something else.
Cultural differences, regional, temporal and economical situation affect what we perceive as luxury. For example, a car used to be considered a luxury good. Now a car is daily life commodity. Perception of the world through the prism of ethnic-geographical conditions and culture also plays a role. Ferrari is not considered a luxury good in the forests of South America inhabited by indigenous Indians, but remains a luxury dream car for many Italians. Another example may be diamond jewellery, which loses its value in the wild areas of the Northern Canada, where a special knife or gasoline are much more valuable.
The consumers of luxury goods have changed. They used to be wealthy individuals whose property has been passed down from generation to generation. They used to buy luxury goods because it was a cultural requirement expected by the community in which they functioned.
Today’s luxury good consumers are very often the people who have earned their big fortunes themselves. This makes them more aware and demanding clients. Companies offering goods with the highest quality need to adapt their marketing methods to the new conditions of changing world. This new class of consumers of luxury goods has created new market conditions, where attracting new and loyal consumers is a challenge. Customers do not expect only a beautiful product, but also the added value of it, connected to the brand.
Brands should be individual and distinctive in a way that differs significantly from other, similar, pre-existing brands in the market sector.
Modern, big, recognizable and multinational luxury brands are personalities that are present in our culture and daily life like sports heroes, movie or music celebrities or well known fictional characters. These brands have become recognizable and prestigious thanks to their steadily built image of luxury.
About the Author
Anastazja Magdalena Kasztalska is a PhD student of Management Science in the Department of Marketing on the University of Economics in Katowice.
She is graduated in Management with a specialization in Management of a Company at the University of Bielsko-Biała. In 2015 she began postgraduate studies in International Management at Department of Management and Informatics at the University of Bielsko-Biała.
Her research interests and passion in life is the industry and marketing of a luxury goods and services and of course her cat Iwan.