In order to answer how luxury is perceived, it is first necessary to clarify how luxury is defined. Terms such as prestige or premium, which are often used synonymously or not clearly defined, make it difficult to define precisely. Luxury is characterized by two essential characteristics. Firstly, luxury goods or services represent a superlative or world record that can be measured in some way: number of working hours required, weight measured in carats, amount of manufacturing costs, age of a manufactory, rarest artisanal techniques, duration of function or other performance characteristics. The price of a luxury good is merely an expression of a special exclusivity, but not its constitutive characteristic. Second, luxury characterizes its identity-forming power. This is generated by communication from the manufacturer in the form of advertising, social media, events. Luxury consumption allows identification with a brand message in order to become aware of one’s individuality on the one hand and one’s relationship to society on the other. By acquiring jewelry, yachts, sports cars, clothes, antique books, consumers adorn themselves with personality traits such as rich, powerful, beautiful, educated or young. Typical luxury brands are Steinway & Sons, Rolls-Royce, Belmond or the kitchen manufacturer Poggenpohl from Herford.
Above all, the service around the products must be further expanded in order to still be successful in 15 years’ time. Loyalty to brands plays a decisive role in this. “Today’s luxury customers in China are 20 to 25 years younger than the Western clientele. This means a rethink for luxury goods companies.” 50 percent of all luxury sales take place in 20 major cities around the world – eight of which are in Asia. In Germany, the industry generated sales of around 10 billion euros last year – 7th place worldwide. In Europe, Italy is the largest luxury market with 16.6 billion euros. What is the reason for the growth of luxury? A variety of reasons can be cited, with the constant creativity and customer orientation of luxury brands being essential, but not even the most significant. The growing increase in luxury has the following reasons: the change in social values, technological progress and the demographic factor. All of them are mutually dependent and will have a lasting impact on the future of luxury as a social, cultural and economic phenomenon.
EDITOR’S PICK:
Planning a branded kitchen can be considered a worthwhile investment. A kitchen from Poggenpohl is designed to last around 20 years and can significantly increase the value of a property thanks to high-quality materials, professional workmanship and brand recognition.
