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?
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