Defining luxury might sound simple but the whole concept of luxury has changed significantly over the last few years. Where once we thought of luxury as being an abundance of material possessions, the focus has shifted to more personal concepts of freedom, space and time. So let’s take a look at the appropriate definition for luxury in today’s world.
Defining Luxury: What Does Luxury Mean
The meaning of the word luxury is actually lust. It originates from the Latin words luxuria meaning excess and luxus meaning extravagance, which became luxure in French.
In Elizabethan times, this idea of luxury was associated with adultery, yet it eventually came to mean opulence or splendour. Quotes that define luxury used to reference money and wealth but these days they focus more on money can’t buy notions such as freedom.
1. The Paradox of Luxury
Originally, luxury goods were all about craftsmanship and owning items that were not readily available to others. However, this all changed with the rise of mass production in the Industrial Revolution and the globalization of commerce.
Consumers can now easily obtain the same luxury items worldwide, whether by travelling overseas or by ordering online from a platform such as Net-a-Porter or Farfetch, Yet scarcity remains a determining factor in whether goods are considered to be luxurious.
In the current climate, many mid-market luxury brands are struggling, whilst those at the top end are thriving. So how do we reconcile this paradox of luxury?
Tech brands such as Apple have been successful at controlling supply to create demand for their new products. Limited editions and exclusive previews are also good ways to drive interest.
Louis Vuitton increased the price of their Pochette Accessoires Monogram Canvas handbag by 25%. These higher priced products didn’t deter luxury consumers, and the brand has made a post-pandemic return to growth.
2. The Best Things In Life Are Not Things
Alongside the democratization of luxury, there’s a certain disaffection with mass consumerism. Scientists at Cornell University have found that we get more pleasure from experiences than material things.
All well and good if you are marketing a luxury spa or a no-doors helicopter ride, but what about those selling luxury consumer goods? Well, it’s essential to create upscale experiences around your product.
For example, perfume brand Le Labo hand-blends and prepares each fragrance in front of the consumer. Each bottle is dated and has the customer’s name on it.
European luxury car manufacturers understand the importance of the customer experience. Rolls-Royce owners have the option to collect the car from Goodwood and enjoy a factory tour with a ceremonial handing over of the car keys. That’s the real definition of luxury goods.
3. Luxury is a State of Mind
Hand in hand with the trend towards experiential luxury is the importance of self-fulfillment and becoming our best self. Or to put it another way, how others view me is less important than how I view myself.
It’s quite a turnaround from the old bling-bling luxury definition. It may be human nature still to brag but these days it’s more likely to be about climbing a mountain.
Moreover, time is considered by many as the ultimate luxury. A study by the University of Columbia, British Canada, found that fewer than a third of individuals in the study spent money to buy themselves time each month. Yet those that did reported significantly higher life satisfaction than the others.
How can luxury brands tap into this trend? For luxury hotels, offering courses in mindfulness or sleep analysis are popular options.
Just look at the popularity of healthy lifestyles on social media platforms such as Instagram, with luxury activewear and green juices being the new symbols of luxury. And have you noticed the abundance of images where there’s one sole protagonist gazing into the distance in a deserted natural landscape? In an increasingly frenetic world, space is a rare commodity.
Sustainability is another important consideration for luxury goods manufacturers, as it’s increasingly important to consumers worldwide. Millennials and Gen Z in particular evaluate brands on their sustainable credentials, together with their online services.
4. Stealth Wealth
The trend towards a less showy version of luxury can be observed everywhere. The leather goods manufacturer, Bottega Veneta is a prime example of stealth wealth.
There are no flashy logos on show, yet aficionados can identify their woven leather handbags with ease. The Hakkasan Group, known for its Asian inspired restaurants and nightlife experiences, is another proponent with only a discrete symbol signalling the entrance to its establishments.
These subtle symbols of luxury indicate to others that they are part of the same insider’s club – those in the know. In the United States, particularly in New York, young shoppers are no longer impressed by traditional department stores.
Unlike previous generations, they prefer accessible luxury as opposed to conspicuous consumption. This new audience craves excellent customer service, yet with a fun slant mixing art elements with the finest quality.
Affluent consumers still appreciate free shipping and personal shoppers, but in the past decade they’ve become increasingly focused on new technology and contemporary design.
5. The Devil is in the Details
As Hubert de Givenchy said, luxury is in each detail. With tastes becoming increasingly sophisticated, consumers are seeking authenticity and craftsmanship.
From foraged ingredients for craft gin, to the emphasis on equestrian heritage by Hermès, every product should tell a story. Personalisation is also a key luxury trend, and high-end brands such as Bamford are riding the wave by offering full customization of some of the world’s most iconic watches.
Image-wise, certain countries have a head-start, with Germany products being ranked highest worldwide for quality, according to a survey by Statista. Italian brands are considered the strongest in design, whilst Switzerland takes the overall crown for luxury products and services.
The American media-savvy designer Jeffrey Bilhuber believes that luxury at home is another important factor. Whether you favor spectacular chandeliers or freshly cut roses from your garden, an elegant yet comfortable house is a true haven.
6. Luxury is about Emotional Connections
Ultimately, luxury lifestyle marketing means focusing on customer-centricity and making an emotional connection. Yet how can luxury brands achieve this in a world where the consumer is aware of advertising ploys?
One proven way to succeed in the luxury market is to engage consumers by making them part of the story. User Generated Content (UGC) such as Burberry’s groundbreaking Art of the Trench campaign, is increasingly popular.
Burberry encouraged customers to upload a photo of them wearing the iconic trench coat and the best submissions were shared to a micro-site, a Facebook page and subsequently to a digital wall in-store.
With luxury style, it’s also important to engage all the senses – visual, auditive and tactile but also olfactory. Sense of smell works on a subconscious level, bringing back childhood memories.
As soon as you step into the lobby at a Le Meridien hotel, you’ll notice the fragrance created by Le Labo to evoke comfort, libraries and The Little Prince book. Shangri-La Hotels have a signature scent that gives luxury travelers a reassuring sense of familiarity – the Essence of Shangri-La. These luxury hotel brands understand how to nurture their guests and make them feel at home.
Savvy designer fashion brands such as Fendi have tapped into the trend among the younger generations for playful goods by adorning their luxury handbags with cartoon characters.
Related reading: Luxury Marketing Strategies
If you can create a connection with luxury consumers that goes beyond the moment of purchase then you’ll hopefully have their enduring loyalty. For example, a boutique hotel can create a dialogue as soon as a customer has booked, by suggesting a whole host of personalized touches for their upcoming stay such as type of pillow and inquiring as to whether they are celebrating anything particular.
Some hoteliers use LinkedIn and online searches so that they can recognize new guests and greet them by name before they’ve even reached the front desk – impressive but expected by some of the world’s most demanding Ultra High Net Worth individuals.
Final Thoughts on Defining Luxury
Luxury is something that should be approached with critical thought and deep consideration. It can encompass experiences, material possessions, and any other statement of financial power.
Luxury is not necessarily an indulgence of excess but rather an elevation of the ordinary. As we learn more about luxury, we can come to better understand what it means to us personally and what it could represent in our lives.
Ultimately, luxury is deeply connected to who you are, as well as how you choose to live your life. Be sure to explore how luxury has impacted your current lifestyle or may shape future aspirations – there are many different perspectives to consider and discover with regards to luxury.
So to sum up, defining luxury is a complex task as it means different things to different people – whether time, space, craftsmanship or personalized service. This new definition of luxury isn’t just about social status, it’s about life’s abundance.
Discover what luxury means for yourself through research or exploration. Finally, make sure to look into our other articles on luxury, so that you can continue learning more about this exciting topic!
You might also enjoy:
- Best Luxury Family Destinations Worldwide
- Best Luxury European City Breaks
- Luxury American Car Manufacturers
- Luxury Travellers | 10 Luxury Travel Trends
- Social Media Influence
- Top Luxury Quotes
- Watches That Are Likely To Hold Value
Pin for later or share with friends if you’ve found this guide to defining luxury interesting.