Top Luxury Brands in the World and Why They Continue to Thrive

Source

The Luxury Market remains Relevant

Even in a decade of economic recession and belt-tightening the luxury market remains an important rising segment in the international marketplace. This can be ascribed to various factors, for example an ability to design and produce more luxury goods while more wealthy consumers also have an emotional connection with quality brands and are thus loyal to these brands irrespective of prices. Wealthy consumers also want to impress others by their ability to pay high prices for luxury goods. By obtaining luxury goods, their wealth and social positions are being demonstrated and their status in their communities communicated. When people purchase luxury goods they also have a sense of accomplishment by being able to afford the finer things in life as a result of their success.

What role can  luxury brands still play in a consumer's life?
What role can luxury brands still play in a consumer's life? | Source

Luxury Brands are also major Brands

Luxury brands and the "good life" meet in a world of style, unique identity, salience, exclusivity and an emotional connection with products and services of a high quality and premium pricing. Luxury brands are also perceived as major brands.

What distinguishes a brand as a luxury brand? A luxury brand is

  • authentic and perceived as exceptional and crafted with precision;
  • available internationally with at least 30% sales in other countries such as the Americas, Europe and Asia; and
  • perceived as having an almost iconic status and desired at a level which excludes considering the purchase of counterfeits.

The table below depicts the classification of some luxury brand industries:

Luxury Brand Industries classified with Examples

Luxury brand industry
Some examples
Fashion and accessories
Caterpillar clothing, Fabiani, Pepe Jeans, Chanel, Dior, Calvin Klein, Versace, Armani, Ralph Lauren, Prada and Yves St Laurent.
Leathergoods
Louis Vuitton, Mulberry and Gucci.
Wines and spirits
Hennessy cognac, Dalmore Scotch Wiskey, Chrystal Head Vodka, Moet and Chandon champagne, Dom Perignon champagne, Bryant Cabernet, 2005 Château Mont-Redon and Côtes-du-Rhône Rouge.
Jewellery and watches
Harry Winston, Cartier, Bulgari, Buccellati, Van Cleef & Arpels and Piaget.
Cosmetics and Fragrance
Carita, Maria Galland, Payot, Yves Rocher, Estee Lauder, Oscar de la Renta and Elizabeth Arden.
Vehicles
Mercedes Benz, BMW, Range Rover, Audi and Lexus.
Hospitality
Hilton, Marriot and Sheraton hotels,
The table depicts how some luxury brand industries can be classified with examples.

As long as there is an appreciation of the finer things in life which only a lot of money can buy, the luxury market and luxury brands will continue to blossom. The duty-free shops at international airports provide an ideal way of indulging in luxury items.

References

Kapferer, JN & Bastien, V. 2009. The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands. London: Kogan Page.

Keller, KL. 2003. Strategic BrandBuilding: Building, Measuring And Managing Brand Equity. 2nd edition.Upper Saddle River,NJ: Prentice Hall.

Vickers, JS & Renand, F. 2003. The Marketing of Luxury Goods: An Exploratory Study – Three Conceptual Dimensions. The Marketing Review 3(1): 459-478.

Vigneron, F & Johnson, LW. 2004. Measuring Perceptions Of Brand Luxury. Journal Of Brand Management 11(6) 484-506.



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Your feedback is welcome 2 comments

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Tricia1000 4 years ago from South Africa Author

Thanks for the comment. Yes I agree.


AndriyR 4 years ago

Thank you, a nice article!

A good reason to buy an expensive luxury jewelry or whine - is to save money from inflation. Investing in such things that won't lose their value is a great form of investment, especially during the economic recession.

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