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HTML PUBLIC “-//W3C//DTD HTML 4.0 Transitional//E–> What’s inside a Luxury Brands-?Introduction
A brand is a name more specifically, it refers to the descriptive verbal attributes and concrete symbols such as a name, logo and design scheme that convey the essence of a company, product or service. Brand recognition and other reactions are created by the accumulation of experiences with the specific product or service, both directly relating to its use, and through the influence of advertising and media commentary. A brand often includes an explicit logo,fonts, color schemes ,symbols and sound which may be developed to represent implicit values, ideas, and even personality. The key objective is to create a relationship of trust.
Luxury, derived from the Latin word luxus, means indulgence of the senses.
Luxury Brand
Luxury brands are brands whose ratio of functional utility to price is low while that of intangible utility to price is high. Such brands share characteristics like consistent premium quality, a recognizable style or design, a limited production run of any item to ensure exclusivity, an element of uniqueness and an ability to keep coming up with new designs when the category is fashion-intensive. Retail management company KSA Technopak estimates the market for luxury and high-end clothing in India at Rs 1,000 crore and for accessories at another Rs 1,000 crore. Many leading global luxury brand marketers have started taking our market seriously. It is estimated that by 2010, Indian consumers are realizing about the luxury brands.
How Different is Luxury goods’ Marketing & Brand building.
Luxury goods’ marketing is a different ball game as the type of customers involved fall in a different class altogether. These customers are influenced more by glamour and style and want to stand out in a crowd. They do not hesitate whey they buy a Louis Vuitton bag costing Rs 50,000 or Fendi accessories costing Rs.40000 & so on.
Managing luxury brands is as much an art and science. The challenge is to create a demand for something which is not really needed. After all, it looks crazy to spend Rs 50,000 on a handbag or Rs1,27,000 on a sunglasses. Creativity plays a key role in creating such a premium image. Many luxury brands achieve legitimacy and fashion authority as a result of the creative talent of their design teams who respect the brand heritage and yet continuously reinvent it. Brand-building is a different ball game in case of luxury goods. Fashion shows, special events, and other public relations efforts must be carefully coordinated to convey the desired image. The magazines selected for advertising are often unconventional and trend-setting. It is the kind of people who read them, not the numbers, which matter. The movies in which the brand appears and the celebrities and pop icons who endorse the brand must also be selected carefully. Traditionally, luxury brand retailers lack automation of transactions with clients. Using Software packages they can easily maintain the records and also leads to good customer relationship and also customer retention. Customers who buy an accessory like a belt or sunglasses today may purchase higher-value items tomorrow. one who buys a single item from one store may buy items of the same brand in o
ther stores around the world. Customer databases enable owners to contact their consumers with invitations to collection previews, end-of-season sales and other events. Customer databases also ensure that even when salespeople leave, their knowledge is not lost.
Some of the points discussed so far are exemplified by the French luxury goods conglomerate LVMH . is a French Holding Company and is the world’s largest Luxury goods conglomerate. Louis Vuitton which owns several famous brands in various product categories:
Fashion and Leather goods (Christian Lacroix, Donna Karan, Givenchy, Kenzo and Louis Vuitton) Watches and Jewellery (TAG Heuer, Ebel, Chaumet and Fred).
Conclusion:
Luxury Brand is clear evidence that the super rich of the world, irrespective of which country they belong to, have similar lifestyles, tastes and aspirations. They want the best and the latest in fashion. At many big social functions today in the country, it is not uncommon to see women carrying Vuitton’s Theda or Monogram Ambre handbags. Developing luxury brands involves heavy investment of time, effort and money. That needs a different kind of mindset which is generally lacking in many Indian companies who look for quick returns. That is why there are few Indian luxury brands. But for those who are willing to take the plunge and wait patiently for the results to come, there is a pot of gold waiting at the end of the rainbow.
References:
http://en.wikipedia.org/wiki/LVMH Debashis Pati, ”BRANDING Concepts and Process”, Macmillan India Ltd.,2002 http://hauteconcept.com/2008/06/30/louis-vuitton-wins-ebay-ruling/
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