What is luxury? This is the first question that comes to mind when one talks of luxury marketing. A few years ago luxury was synonymous with ‘premium’, either by way of price, design or sheer positioning. However, as ‘premium’ became everyday and consumers wanted other ways of indulgence, luxury started taking on a new meaning.

The word luxury conjures up powerful imagery and special feelings, that unique sense of aspiration and longing. Hence, luxury is the means of catering to an individual’s dreams and aspirations. And, in today’s world, we can safely say that luxury may well be the changing nature of an individual’s expectations.

Today, with the increasing demand for luxury, there is a super premium product or brand in every category that caters to the needs of this ever-growing tribe of affluent consumers. There is Evian in water and Dom Perignon in champagne, there is Rolex in watches and Tiffany or Van Cleef in jewelry, and they are present everywhere.

This growing segment of luxury consumers has become smarter and luxury brands can no longer survive on brand image alone. The luxury customer has become more value driven and demanding of superior service, intelligent communication and, to top it all, a personalized understanding of his wants, likes and desires. This makes the job of the luxury marketer more challenging.
 
Consumer Call

Today’s luxury marketer has to have the capacity to deliver sophisticated marketing, an ability to develop marketing intimacy and one-to-one marketing programs. He also needs a thorough knowledge of the product, the likes and dislikes of the target customers and an ability to give them the intelligent coddling that they desire.

Today’s consumer has become a connoisseur and has an insatiable hunger for knowledge. They want to know what the best of the best is and then demand just that. They are willing to pay the price for these services and that makes them feel as though they warrant the same because they are ready to pay for it.

The customers in this category have spent their careers and time making the kind of money that gives them the nest egg, so to say, that allows them this luxury. And now they have the time and the inclination to understand, sample and savor the finest in every category of product, whether it is wines, cars, yachts, jewelry, holidays or even cultural experiences. And the modern marketer has to be able to fulfill these desires before the product does so.

Also, the new customer of luxury products and services desires a personal touch, and hence ‘customization’ or ‘personalization’ has become a crucial requirement in the luxury marketing sphere. The implication of this need is that the luxury providers require establishing personal relationships between the consumer and the marketer.  One size does not fit all, especially in the case of luxury products.
 
Demand from Marketers

Hence, today’s luxury marketers need to have the following aptitudes and hone them as we still have a long way to go:

- Understanding not just the market– but the people who make that market.
- Specific triggers that make the brand experience not just enriching but unique characteristics that satisfy the individual’s expectations.
- When scarce is a plus
- They will need to become information providers, guiding consumers through the process of self discovery with their products to get that feel of luxurious satisfaction.

As an initiation in the process of dealing with this dynamic environment, marketers will need to contemplate beyond the traditional notions of luxury. The number of approaches to reach the consumers with a taste for luxury is almost endless. The luxury market segment still has miles to go.

Hemant Shah is Convenor, Promotion, Marketing & Business Development, GJEPC