Luxury is about saying "no"

I was fortunate to attend the webinar organised by Eric Briones and the Journal du Luxe yesterday and the here are the key takeaways that I jotted down from Jean-Noel KAPFERER's intervention (Professor Emeritus at HEC Business School) .

🛑 Luxury is about saying “No”

Luxury is not about excess but about refinement and exclusivity. Companies like Hermès and Ferrari prioritize quality over quantity by asking what products they should refrain from producing.

Hermès “What is the one bag too many we should not produce?”

Ferrari: “What is the one car too many we should not make?”

True luxury is defined by what it refuses: refusing to scale mindlessly, chase volume, or compromise its essence or craftsmanship.

📈 Smart pricing in a changing world

As global wealth increases, luxury brands are advised to elevate their average pricing strategies to maintain exclusivity and a relative inaccessibility. If luxury becomes too accessible, it becomes premium or masstige. “Accessible luxury” is an oxymoron.

🌍 The existential shift of luxury

The definition of luxury is evolving, leading to an identity crisis within the industry. Balancing growth targets with maintaining scarcity and desirability is crucial. Storytelling remains pivotal in selling dreams and creating allure. Financial markets dislike small-scale, niche thinking but that's where true luxury often lives

🚫 The anti-marketing laws of luxury

Luxury marketing focuses on creating desire rather than catering to existing preferences. The essence of luxury lies in polarization and exclusivity, avoiding mass appeal. Inaccessibility and maintaining value without discounts are key principles.

⚖️ Smart Luxury = Quality + Integrity

Prioritizing hyper-quality and personalized experiences enhances the luxury proposition and act as value multipliers. Customization and attention to detail elevate the brand value. Quality improvements should align with price increments to maintain the brand's integrity.

⚠️ Case Study: The Fall of Saab (former Swedish car brand) Saab's attempt to broaden its appeal led to a dilution of its brand identity and subsequent demise. Straying from its distinctive design language to cater to a wider audience resulted in a loss of relevance. The lesson learned: maintaining brand integrity is essential to long-term success.

Let’s rethink luxury — it’s about courageously saying no to protect rarity and inspire dreams.

#Luxury #SmartLuxury #BrandStrategy #Exclusivity #Kapferer #JournalduLuxe #LuxuryMarketing #Desirability https://lnkd.in/gYrGD97S