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Luxury & Design Based Strategies

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Luxury & Design Based Strategies
Luxury & Design Based Strategies
Lecture 1: Introduction, Luxury and Design-based industries, products and services, approaches and specificities
Luxury attributes
Comes from inspiration
Has a strong human component
Creates emotions
Has a tradition, history, heritage
Quality more than quantity
Rare, unique, exclusive
Sophisticated
Based on rarity of the offer/ scarcity
Multisensory
Strong esthetic/ beauty component
Finesse of craftsmanship, precious materials and ingredients
Luxury hierarchy
1. Absolute
a. The client wants to be surprised
b. The product is essential
c. Exclusive sale
d. Haute couture, jewelry and watches, luxury cars, yachts, private planes
2. Aspirational
a. Limited series
b. Selective retail
c. Strong symbols
d. Ready to wear, accessories, restaurants
3. Accessible
a. Industrialized process
b. Price based on competition
c. Communication
d. Perfumes & cosmetics, accessories

The greater the inaccessibility, the greater the desire. Managing luxury brands = managing desirability
Luxury derives from “lux” = light: the brand expresses the aura (the light) of the creator
Charismatic persona: the brand founder or the artistic director who designs the products
Maintaining the aura:
By mythologizing the founders (e.g. in boutiques, through digital media)
Through luxury flagship stores (lojas proprias):
Through the alchemy and the sacralization of the place, branded products leave the world of ordinary goods and become luxury icons.
Luxury now creates social stratification in countries in which it did not previously exist
Western: luxury creates a sense of differentiation, means distinction and “elite” culture
Emerging countries: luxury creates a sense of belonging
Premium vs. luxury:
Luxury is not premium as its best
Some upper range branded products are more expensive than the equivalent luxury products
Luxury is relative (lacoste luxury In china)
Premium brands want to create the best product and compare
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