1.
INTRODUCTION
The creation of luxury brands involves high levels of complexity and a great deal
of quite often, I would say businesses build a brand, that is connected with
exclusivity, high quality and unique personality. Creating luxury brands is a
unique activity that is ported from other market segments in that it aims at
fostering emotional, social, and symbolic dimensions rather than the
parameters of cost, functionality, or value. It is not even a question of
narcissism, although that adds to the prerogative of a consumer, which is
simply launching a higher value proposition but creating a whole ecosystem
that embodies the concepts of prestige, want, and aspiration.
Exclusivity is inherently understood between luxury brands and customers. A
key prerequisite advice on creating a luxury brand is the notion of managing
availability and accessibility of the product in order to keep potential clients
want that which they can not have. Unlike brands with mass appeal that are
available worldwide, luxury brands do the exact opposite. They add scarcity
into the model in order to increase appeal. This scarcity is necessary in that it
supports consumers’ misperceptions of shortage and lack of real access to the
products, which boosts the overall deterrent value of the brand. Not only does
the desire increase, but the ideas of luxury brand positioning are that a luxury
brand is something which very few people can have.
Also, it is important to note that luxury brands are dependent on their image
and story-telling relating to origins and craftsmanship. The luxury brand
ecosystem is also defined by its meticulous attention to detail in product
design, marketing, and retail experience. Every aspect, from the packaging to
the product itself, is carefully crafted to convey luxury. The sensory experience
of interacting with a luxury brand is integral to its identity. High-end boutiques,
personalized services, and exclusive events are some ways in which luxury
brands create a unique and intimate environment for their clientele. This
immersive brand experience fosters loyalty and strengthens the emotional
bond between the brand and its customers.
Brand positioning is another critical factor in the creation of luxury brands.
Effective positioning not only differentiates the brand from competitors but
also highlights its unique characteristics. This often includes aligning the brand
with celebrity endorsements, prestigious events, or art and culture. By
associating with cultural icons or major global events, luxury brands create a
halo effect that reinforces their premium status.
Price also plays a strategic role in luxury branding. Rather than competing on
cost, luxury brands often command a premium price, positioning themselves
as aspirational goods. The high price point reinforces the perception of
exclusivity and quality. This deliberate pricing strategy aligns with consumer
expectations of luxury, where higher costs are equated with superior
craftsmanship, rarity, and prestige.
Marketing strategies for luxury brands are also vastly different from traditional
mass-market approaches. Luxury marketing often relies on exclusivity and
word-of-mouth, where the brand’s allure is heightened by its association with
elite groups. Digital transformation has also revolutionized luxury branding by
expanding its reach to global audiences, but the challenge remains in
maintaining the exclusivity factor in an increasingly connected world. Social
media, influencers, and carefully curated online platforms have become
essential tools in luxury brand communication, but these strategies are applied
in a way that still emphasizes rarity and aspiration.
In conclusion, the creation of a luxury brand is a complex endeavour that goes
beyond the traditional facets of brand development. It requires an
understanding of the psychological, emotional, and cultural dimensions that
drive consumer perceptions of luxury. The synthesis of exclusivity, heritage,
craftsmanship, emotional connection, and strategic positioning culminates in a
brand that transcends the material product, becoming a symbol of aspiration,
success, and identity for its consumers. As the world of luxury continues to
evolve, particularly with the influence of digitalization, maintaining this delicate
balance between tradition and modernity remains the cornerstone of luxury
brand creation. It can also be relevant to note that luxury brand and luxury
items are usually characterized by a very high level of brand exclusivity,
cautious workmanship and a long-brand heritage, all of which is reflected in the
Wardrobe Brand’s ultimate essence.
**Louis Vuitton**, started its journey in 1854, LVMH is renowned for luxury
leather accessories, particularly bags and trunks having the personal emblem.
The elegance and detail of the brand have endured the change in designer and
the new divisions for ready to wear and accessories uphold the same standards
of quality and creativity.
**Chanel**: Born by Coco Chanel in 1910 was one of the famous fashion
houses that transformed women’s fashion into simple, elegant and chic by
popularizing the little black dress and the Chanel no. 5 perfume. It looks classic
and has been in business for many decades in creating luxury apparel,
perfumes and jewelleries.
**Gucci** is an Italian luxury fashion house which was established in 1921
Gucci’s designs are supposedly strong and unique, merging traditional artisan
with modern, post modern styles. Since Alessandro Michele took charge as the
creative director of the fashion house, Gucci decided in favour of the
maximalist marketing approach, focusing on younger and more fashionable
people, however, without abandoning the top brand position.
**Hermes** is one of the oldest brands that was founded in 1837, and it has
been manufacturing leather goods and, among all the products, Birkin and the
Kelly bags are quite notable products because they are expensive, and they are
stitched by hand. The value of high-impact craftsmanship is seen across almost
all product segments of Hermès – from the iconic silk scarves to fashionable
ready-to-wear.
Last but not the least, **Rolex**, is a prominent brand which is already in the
market of luxury watches for accurate time, dependable and stylish look. Rolex
was founded in 1905 and aside from being used to signify a classy economic
status, they possess technological aspects especially in diving and sports
wristwatches. All the above brands remain strategic players in the luxury goods
market because they incorporate traditional elements with the contemporary
themes, thus responding to the need of the elite class, as well as those who
value quality.
[Link] REVIEW
Analysing the literature on building luxury brands, the role of factors in creating
value for these brands is highlighted while stressing such factors as history,
uniqueness, quality, and appeal to emotions. Kapferer and Bastien (2012)
pointed out that the concept luxury brands maintains the qualities including
craftsmanship, tradition, and story. Despite such brands establishing a
correlation between their brands with history, they tend to incorporate
historical relations and prestige in their products to fashion a different model
than that established by non-luxury brands. In this case, heritage was defined
as an obsolescence of time, which means that the brand becomes more
attractive to consumers who want not just a commodity, but history.
The fifth aspect Is exclusivity that stems from scarce availability and high
prices that facilitate the creation of a scarcity impression. Vigneron and
Johnson observe that exclusivity remains integral to sustaining the luxury brand
image. This is a circumstance that works in the favour of the brand to create
some mystique around its product which is an important facet of luxury.
Another item that fully reveals its significance in luxury branding is the point of
quality. According to Beverland (2004), the perceived quality is therefore
sustained by using quality material or excellent workmanship to give the luxury
brand a firm foundation in the market. Pledge of superior quality convinces the
consumers that they are buying a product with great durability and this makes
the brand to be more creditable.
Last, the element of appeal is a crucial part of the development of luxury
brands. Consumers experience a need for affective objects for identity
maintenance, narcissistic publication, competition, and group affiliations
which luxury brands provide under images and aesthetic allure. In the
conceptual paper by Dubois, Laurent, and Czellar (2001), they pointed out that
luxury brands receive the patronage of consumers when they gain more than
the functional utilities Therefore, luxury brands act as signals where consumers
get the impression that they are among the elite.
The creation of luxury brands Involves managing several key elements: They are
as follows: exclusivity, tradition, hand-made and symbols. Economic benefits
of premium products differ from lower quality products by augmenting the
functions of the product, which could simply signify status. To elaborate a
brand’s authenticity, brand history is the key, while refining a brand’s quality
image, the superior workmanship is the way. In simple terms, when exclusivity
is being attached on a product then desirability is made through rationing of the
same product. Today’s luxury brands are situated in a digital and global
environment; it becomes important for the luxury brands to try to balance the
historical processing in the luxury goods industry with modern trends in luxury
branding.
[Link] METHODOLOGY
Methodology is an essential aspect of any research of investigation. It enables
the investigation to look at the problem in a systematic, meaningful and in an
orderly way . The present study is descriptive and analytic one . This study is
based on both Primary Data and Secondary Data.
METHOD OF DATA COLLECTION
1. PRIMARY DATA COLLECTION
SURVEYS: A structured online self-administered questionnaire will be
developed and delivered to a number of randomly selected consumers who
have had experience in the purchase of luxury brands. In particular, the
questions of the survey will be designed to correlate with the respondent’s
perception and behaviour towards brand ownership and the brands’ brand h
heritage, craftsmanship, and exclusivity of the different brands, and their
propensity to
QUESTIONNAIRE DESIGN: The consumer questionnaire will contain Likert
scale and multiple choice to measure consumer behaviour and concerns.
2. SECONDARY DATA COLLECTION
LITERATURE REVIEW: Secondary research will thus consist in further analysis of
the literature, peer-reviewed articles, and market reports to gain further
insights into ways and strategies firms and brands adopt in the management of
luxury brands, luxury brands markets and customers.
The methodological approach of the study is aimed at identifying the factors
that may help to design the effective strategies for the generation and
management of luxury brand in the context of the rapidly changing today world.
3. DATA SOURCE
QUESTIONNAIRE: A questionnaire is a research instrument whereby the
respondent is asked a number of questions following a similar pattern. It is
intended to obtain certain information related to certain issues of interest
such as customer trends, attitudes or actions. In this study, the
questionnaire will be adopted in order to capture consumer quantitative
attitude towards the luxury brand attributes such as tradition, quality and
selectiveness. Responses will be constructive and freely provide opinions
with regard to the factors that appear to influence the creation of luxury
brands and consumers’ choices.
RESEARCH DESIGN
In the midst of a research process, Research design can therefore be
defined as the general approach and detailed plan used to ensure that all
the various components of a study are systematically and sequentially co-
ordinated and connected. It describes ways and steps to gather and
evaluate data so that the research focuses on meeting the study’s goals.
Research design is a blueprint that defines the character of the study,
selection of stations, procedures of data gathering and ways of data
analysis. In fact it outlines how the study will be made, in order to make sure
that the results observed are accurate and conform to the overall truth. In
this report DESCRIPTIVE RESEARCH METHOD was used i.e, interpretation
was drawn and then interpreted.
SAMPLE DESIGN
Convenience Sampling is a type of non-probability sampling that involves
the sample being drawn from that part of the population that is close to
hand . This type of sampling is most useful for pilot testing .
SAMPLE SIZE
[Link] OF THE STUDY
The thesis of this study hence seeks to offer a clear understanding on how
luxury brands are built, nurtured and maintained. The aim of the research is
to investigate and define components and factors that have impact on
distinctive character and sustained success of luxury brands. The specific
objectives are:
1. EXAMINE THE ROLE OF CORE BRAND ATTRIBUTES:
Another analyse how brand heritage, craftsmanship and exclusivity play
the role in building and defining the luxury brand.
It is also important to appraise the role of the symbolic value proffered by
these attributes in the construction of brand placement.
2. ANALYSE CONSUMER BEHAVIOUR AND BRAND PERCEPTION:
- Understanding consumers’ purchase intention for luxury brands: The
influence of status, bonding and cultural appeal.
As we analyse consumer motives such as quality, scarcity, and fame for
the luxury brands one has to define how these factors impact on the
consumer decisions to repurchase such brands.
[Link] BRAND DIFFERENTIATION STRATEGIES:
Closely learn about the strategies followed by luxury brands relative to the
mass brands, premium brands, or even both concerning pricing, marketing
and product.
Analyse the degree to which exclusion is created through restrictive
distribution networks, special series and high prices.
4. EXPLORE THE IMPACT OF GLOBALIZATION AND DIGITALIZATION:
- Synthesize the strategies of the luxury brands to cope with a globalization
process retaining the strategic positioning and the image of exclusiveness in
new markets.
Look at the influence of digital tools (ecommerce, social networks) on the
relation of consumers with luxury brands without diminishing the prestige of
the brand.
[Link] LONG-TERM BRAND SUSTAINABILITY:
Find out examples of how luxury brand is able to maintain its appeal over a
long time, though the product is updated and marketing communications
messages are changed on a regular basis but always staying loyal to a brand
essence.
Analyse how factors such as a change in economic conditions, consumers’
attitude or trends, technological forces affect the development of luxury
brands and their sustainability.
Through the realization of these objectives, the study hopes to offer a
comprehensive insight into the strategic management of luxury brands and
make recommendation for the brand managers with the view to sustaining
their success in the current global and highly competitive as well as
digitalised environment.
[Link]
The study on the creation of luxury brands is guided by the following hypotheses:
1. H1: The research also conclusively establishes that brand heritage has an
overall favourable impact on consumer perceptions of luxury brands.
A host of consumers have a believed that luxury brands that have considerable
history attached to them are more genuine products according to their needs.
2. H2: Perfection and quality prevail the price that consumers are willing to spend
on luxury products with brand logos.
Customer are willing to part with more cash and buy luxury goods that they feel are
made with better workmanship and quality material.
3. H3: This means that exclusivity and scarcity strategies are desirable to the
brand due to the fact that they increase consumer loyalty.
Scarcity of offerings and selective product releases enhance a brand reputation, and
customers are more likely to become loyal patrons.
4. H4: Evaluators can be used rather than utilitarian motives, and that the primary
reasons for buying luxury brands are social, or rather identity-related.
Rather than purchase of luxury brands being based on functional benefits of the
brand the product purchase seems to do more with emotive-sensory value
symbolism.
5. H5: In the current era of globalization and digitalization a luxury brand cannot
afford to be this exclusive but an efficient digital strategy will not threaten the
aura of luxury. That means improved consumer interaction with luxury brands
by utilizing properly managed digital platforms with potentially no harm done to
any aspect of luxury.
6. H6: Brand consumers are also more loyal compared to luxury brands compared
to the consumer of the mass [Link] luxury brands’ consumers are more
likely to be loyal to a brand because of emotional appeal, status symbol and
perceived quality.
7. H7: Overall, this paper finds that perceived authenticity has a positive effect on
consumer trust and brand equity in the luxury brand context. Getting down to
the specifics, the implications of Perceived Authenticity for Brands are that
those that are consistent with the brands image or perceived to be as being true
to their roots and genuine; end up being trusted more and there develops a
dutiful relationship with the consumers.
8. H8: When there is higher level of personalization towards a luxury product,
there results higher satisfaction among the consumers and hence more loyalty
towards the brands. Some customers are willing to pledge their allegiance to
luxury brands because they get a chance to purchase personalized or custom
made products which will in a way make them unique.
9. H9: Sustainability practices in luxury brand production positively influence
modern consumers’ purchasing decisions. Due to the growing concern of
customers towards sustainable fashion, customers look forward to purchasing
luxury products of clothing produced by ethical and sustainable methods.
10. H10: Indeed, it was ascertained that, due to cultural differences, consumers
have different feelings and attitudes while evaluating and interacting with
luxury brands. Cultural impacts play an important role with regards to what
consumers associate luxury brand to be, and their expectations and
subsequent purchasing behaviour.
11. H11: Significant levels of social media content density enhance brand
awareness but may hinder the status of luxury brands as exclusive. But there is
the danger that social media will increase brand familiarity among the target
audience, which will make the brand not as exclusive and, therefore, not as
luxurious.
12. H12: The brands that are very selective about control of price and access points
are the most successful in retention of brand image and brand status. The
control over distribution and pricing helps sustaining the impression to be
exclusive so that the brands do not lose their luxury touch.
[Link] ANALYSIS AND DATA INTERPRETATION
SOURCE: SURVEY METHOD
Pie Chart 1: Age of Respondents?
AGE
73 responses
INTERPRETATION: The above pie chart shows the respondents according to their age
group. The majority of the respondents belong to the age group of 18-24 years with 89%
second age group includes respondents from age 25-34 years with 4.1% . The third age
group includes respondents from age 35-44 with 1.4% and the fourth age group
includes respondents from age 45-54 with 5.5%.
Pie Chart 2: Gender of respondents?
GENDER
73 responses
INTERPRETATION : The above pie chart shows the percentage of male and female
respondents who use luxury brands. As per the respondents 64.4% females are
luxury brand users, where only 35.6% are male ,luxury brand users.
Pie Chart 3: How often do respondents purchase luxury brands?
HOW OFTEN DO YOU PURCHASE LUXURY BRANDS?
73 responses
INTERPRETATION: The above pie chart shows that how often respondents purchase
luxury brands. The pie chart shows that 39.7% of majority respondents purchase
luxury brands rarely while 31.5% respondents purchase luxury brands sometimes.
The least number of respondents who purchase luxury brands always often or never
purchase are 5.5%,11% and 12.3%. 5.5% respondents purchase luxury always and 11%
of respondents purchase luxury brands often while 12.3% never purchase luxury
brands.
Pie Chart 4: Which luxury brands do respondents prefer?
WHICH LUXURY BRANDS DO YOU PREFER?
73 responses
INTERPRETATION: The above pie chart shows which luxury brands do respondents
prefer. The majority respondents which is 25.25% prefer Dior while 24.24%
respondents prefer other luxury brands like Nike, Zara, Armani Exchange, H&M,
Charlotte Tilbury, Calvin Klein and many more while least respondents which is 7.07%
respondents perfect Hermès. 23.23% respondents prefer Gucci and 20.2%
respondents prefer Louis Vuitton.
Bar Graph 1: Rate respondents satisfaction with luxury brands on a scale of 1- 5
RATE YOUR SATISFACTION WITH LUXURY BRANDS ON A SCALE OF 1-5
73 responses
INTERPRETATION: The above bar graph shows the satisfaction of respondents with
luxury brands . In the bar graph on a scale of 1-5 38.4% which is 4/5 respondents are
satisfied with the luxury brands while on a scale of 1-5 24.7% which is 3/5 and 21.9%
which is 5/5 are moderately satisfied with luxury brands. The least number of
respondents barely satisfied with luxury brands on a scale of 1-5 is 8.2% which is 2/5
and 4.1% which is 1/5 are barely satisfied. 2.7% which 0/5 on a scale of 1-5 are not at
all satisfied with luxury brands.
Bar Graph 2: Rate the following aspects of luxury brands according to respondents
RATE THE FOLLOWING ASPECTS OF LUXURY BRANDS
73 responses
INTERPRETATION:
