Luxury In a Recovering Society

An arresting , must-read report from atelier london, Luxury Trend Report 2010

Summary …

Part 1 What’s going on in the luxury market

• Recession created resentment of wealth
• Consumers are shying away from overt displays of status
• There is willingness to spend on luxury if it is toned down and genuinely deserves its luxury status
• Bling was already on its way out before the recession
• The market crash accelerated the association of overt luxury with the fast-buck culture
• People are making more discriminating luxury purchases and will often compensate by budgeting elsewhere
• There is a new emphasis on the personal relevance of brands
• Status is still important – but it is only to be recognised by those in the know
• There is a new consumer mindset: more discriminatory, making integrity an important factor

Part 2 How to address the new trends

• Brands must truly fulfil luxury criteria to justify purchase
• A marketing ‘message’ is no longer enough; brands now require stories that imbue a purchase with greater meaning
• Stories set a brand apart, but they need to resonate with values and experiences
• It is no longer enough for a brand to tell one story which it projects to consumers
• Brands need to involve consumers who relate on a more level playing field than ever before
• Brands can use online as a tool, not a hindrance, to connect with their consumers
• Luxury brands need to provide multiple stories for their consumers to blend and colour with their own

Part 3 What are the brand stories to tell?

• The story of superior performance: substantiated by how and why it is the best, reassures the consumer
• The story of sophistication: a subtle language that assures the consumer of a shared taste and aesthetic
• The story of craftsmanship: upheld by expertise, time spent, tradition and beautiful design
• The story of collaboration: gives a brand an exciting hybrid story, co-opting the creative partner’s brand attributes, for a collective experience
• The story of exclusivity: imbuing an item with a sense of rarity and exception, which justifies the expense
• The story of involvement: the rising demand for bespoke items builds the status and exclusivity of both brand and consumer
• The story of innovation: keeps brands relevant, particularly those with a heritage story; and a really significant innovation can create a luxury brand
• The story of heritage: not just a name and a date of inception; but a proper history, whether a story of longevity or a cultural immersion
• The story of provenance: if a brand comes from a location famous for that product, that place’s story becomes its own
• The story of ethics: a green or fair trade badge isn’t enough – there must also be an authentic, inspirational or heartwarming tale

This report is only available to members of The Luxury Marketing Council