Luxury Products

Defining The Characteristics of Luxury Products

Branding a luxury product and creating an effective marketing strategy for a luxury brand, involves a unique type of strategy; one that begins with an in-depth understanding of the characteristics of luxury products. The luxury goods industry is significant and not only has substantial market value, but is also an industry that has experienced significant growth over the last 10 years. Typically, there are four main categories within the luxury market: fashion, perfumes and cosmetics, wines and spirits and watches and jewelry; however, other categories, such as automobiles, have also recently found their way into this industry.


Characterizing Luxury Products

Defining what makes a product a ‘luxury product’ can sometimes be difficult, but there are a few key characteristics that can help give a brand or product a luxury label. When it comes to the physical, or functional, components of luxury products, typically these items or brands, can be identified by certain associations tied to the product’s characteristics. The average luxury brand is associated with three characteristics: high price tag, high quality and aesthetics. Typically, luxury brands or products will attempt to associate their brand name with these three associations and to show their target consumers that their brand encompasses these three features. The average luxury brand also has a clear brand identity and signature, places emphasis on product integrity, and offers their products at a premium price.


Criteria and Specifications of Luxury Brands

When it comes to defining a line or a brand as a ‘luxury brand,’ it needs to meet certain specifications. Typically a brand can only be defined as ‘luxury,’ within the market, if it evokes the three aforementioned associations within the mind of consumers. Most experts will also define a luxury brand as one that is not distorted by other external influences. This includes the marketing efforts of competitors. When a brand is truly a luxury brand, its image cannot be tarnished by others.

When a brand has emerged as a true luxury brand, it will be a true master of influencing the perceptions of consumers. For example, a Rolex watch will not suddenly stop being defined as a luxury watch brand, because of a marketing effort by Citizen, as Rolex is a true luxury brand. This is why no other luxury watch brands even attempt to discredit the quality of Rolex watches in their marketing campaigns.


Building The Luxury Brand Image

It is important to remember that not all luxury products are created equal, there are different levels of luxury brands, ranging from entry level to elite level niche brands. Different types or levels of luxury brand items need to be communicated in different manners. Typically, well crafted marketing communications are considered to be the key to building the image of a luxury brand. When it comes to creating communications for luxury brands, as opposed to standard or premium brands, different types of communications are needed. This typically includes celebrity endorsements, positive public relations and promotional events. By highlighting the main defining characteristics of the luxury brand during these promotional communications, a positive luxury image can be crafted and a strong brand identity can be promoted.


Types of luxury products

What Type Of Luxury Products Are You Offering

The concept of luxury is difficult to define, especially since it is an ever-changing and ever-evolving one. Although a Lamborghini may be considered as a symbol of class and luxury to a layman, the same Lamborghini might seem like an ordinary car to a wealthy heir.

Despite the confusions in defining luxury, there seems to be some consensus among industry members that luxury is anything that is desirable but is more than just an ordinary necessity.

Luxury products are, thus, branded, exclusive and desirable products that bring status to the possessor; that is rare and available for a select few. However, if we are to define luxury using these terms and attributes, we would fall short of arriving at the right meaning of luxury products that does justice to the present and evolving market conditions. For example, if we assume a luxury product to be rare, we would be able to find only a few brands within each category of goods. It might not be possible to go beyond Rolls Royce for cars and Hermes for leather goods. Therefore, luxury products should not only be represented by their exclusiveness and uniqueness, but also by its creativity and the emotional value it provides its customers.

If we are to understand the type of luxury products that are offered, we have to first understand the various categories the luxury sector could be divided into. Some of the categories are:

  • Ready-to-Wear
  • Watches and Jewelry
  • Cosmetics and Perfumes
  • Gifts and Wine and other selective products
  • Fashion Accessories sector
  • Hotels and Tourism
  • Automobiles sector
  • Superyachts

While these sectors define the luxury market; it is important to also understand people’s perceptions towards luxury products. Luxury market can be divided into three different levels: Accessible Luxury, Intermediary Luxury and Inaccessible Luxury.

As the name suggests, Accessible Luxury, the first level of the luxury market, is a reachable luxury product that can be accessed by a wide range of customers. These luxury products are produced in large quantities in workshops or factories. The distribution of these mass-produced products is also done on a large scale. Although these products are made on a large scale, they manage to provide the customers satisfaction and experience at the time of purchase. Some of the most common examples of Accessible Luxury products are Chanel perfumes, Swarovski crystals, and Armani sunglasses.

The next level of the luxury market is the Intermediary Luxury. This level corresponds to luxury products that are marked by their exclusivity and limited availability. These products are slightly rare, a little expensive, and are distributed through select channels. Some of the most commonly known Intermediary Luxury products are Prada, Fendi and Versace.

The final and the highest level is the Inaccessible Luxury. This level is the most exclusive form of luxury. It is highly rare, very expensive, and accessible only by a handful of people. These products, mostly, are hand-crafted or tailored products. They make use of some of the most expensive and premium materials. These Inaccessible Luxury products are distributed through a few carefully selected channels. An Inaccessible Luxury product is all about exclusivity, heritage, craftsmanship, creativity and prestige. A few of the most popular Inaccessible Luxury products are Dior, Ferrari and Hermes.

The word ‘Luxury’ means different things to different people, and this relative term could refer to almost anything, depending on the person you address the question to. So after reading this post, what type of luxury products are you offering?