Advantages And Disadvantages Of Luxury

As the increase of the average margin, the consuming ability of the general public has never been this high. Take Taiwan as example, the consuming ability has raised dramatically from 49.2 in 2009 up to 64.7 in 2010, and it has increased year over year. In 2016, the consumer market was up to 8,640 billion NT dollars (Master card). Ever more people are willing to spend more money for relaxation, improving the qualities of life, or to get products to show off their property and social status. Many luxuries are sold with the price three times higher than their costs. The definition of luxury could be positive or negative, but mostly negative. The word of Luxury is originally from Latin. It means “Highly reproductive”, and it has evolved to a word

Usually the marketing strategies which applied this conception works well with the general products, but cannot work with luxuries because those general products do not have the additional value like luxuries. The main propose of consumption upgrade is to create profit. The traditional marketing strategies that the general brands use are not suitable for luxuries, instead, it will ruin the characteristic the luxury brands has built. The unique marketing strategies that only work with luxuries can emphasize the additional values mentioned above which are symbolism, extraordinariness, price, aesthetics, and rarity.

The purpose of advertisement is not selling specific products but to found and promote the image of the brand

This is the first step for all the luxury brands.(舉個名牌的廣告當例子)

In traditional marketing, the first thing they do for an advertisement is to find the specialness of their product and use it on all their advertisement. Take Uniqlo as an example, they keep promoting that their down coat is light and easy to storage. They even named the collection with their feature: Ultra Light Down.

The advertisement of luxuries will not say: “Come and buy me!” They will make you curious about the brand and the products.

Maintain the uniqueness by increasing the difficulty of

Not catering to consumers does not mean luxury brands care nothing about the opinion of their clients. They just simply will not do things that might going to harm their insistence in perfection and the brand identity.

BMW is one of the high reputation car company in the world. According to the World Luxury Associate, BMW is one of the most admired car company in the world. Selling the unique driving experience is the main idea of BMW. In 1990s many Yuppies and successful entrepreneurs or supervisors drove BMW to show off their success. It has become the symbol of eternal and excellence.

However, only few people knows that BMW would rather insists their characteristic than following the opinions that do not meet their faith. BMW is a perfect example to “Not catering to clients”. Every time when BMW launches a new 5 series car, there are always clients complaining that the room of the back seat is too small. They think the design is stubborn and irrational, but BMW status the proportion and the aeromechanics of their car has been well calculated, and it cannot changed because of the demand from their clients. It will ruin the perfection, if they cater to their clients and change their design. On the other hand, Jaguar has been in the same situation when they launched the E-series. After Jaguar enlarged the room of the back seat, it has totally lost the