SXTC GLOBAL BRAND CONSULTING
The ground-breaking article that successfully predicted the collapse of the "New Luxury" phenomenon 3 years before it happened!
The “New Luxury”- Bringing the Myth to the Flame
The “New Luxury”—Bringing the Myth to the Flame
By Stefan Paul (Jaworski)
(Sept 2006) For Marketers, a vital component and reality of their job is to keep abreast of new happenings in both the market and in Marketing as a field in general. From brand building to advertising changes, to new consumer groups on the rise, to demographic changes (current and future) and trends (taste, style, cultural, emotional), to marketing ideation, professional marketers are finding it ever more important to “keep their ear to the ground and their eyes open.” Yet, such activity is “vital” to ensure that they stay ahead of the pack. One such trendy “happening” involving a hypothesis concept that is getting very much attention and “buzz” lately is that of “The New Luxury.”
Indeed, companies and consultants like the management consulting firm Boston Consulting Group (BCG) and major ad agencies have propagated the New Luxury idea in articles, papers, and seminars. All play to an eager audience wanting a constant “heads up” in terms of what’s going on in the market and future trends. The popular, accepted definition of the New Luxury concept is, “as mass consumers become increasingly affluent, more sophisticated, better educated, and brand-oriented, their purchases are becoming increasingly upscale (price-point and brand wise).” This is a very simple concept, straightforward in thought, and yet DANGEROUSLY wrong in my opinion. (click to read more on "The New Luxury")
"Now that the mass market – which was reliant on cheap credit card money – has dried up, some chickens could come home to roost. “It’s the markets that the brands have extended into that create their economic vulnerability... As the markets became buoyant and people got wealthier, more people had access and the desire for this stuff, so it made sense to make these brands accessible. But it dilutes the brand – as soon as something becomes ubiquitous the brand value’s gone.” The exclusivity that was the brands’ raison d’etre has been eroded. The result of Mont Blanc’s move is arguably that its pens seem less special, while its watches and jewellery have not gained the same standing as Cartier or Rolex."
--"What bust means for luxe"- City AM Business Review London, UK
January 6, 2009
"Stefan. Good thoughts about the New Luxury concept. One of the most important conceptual issues is timing. Sometimes a downscale move works in the short term, but not in the long term."
-Al Ries, Legendary Marking Guru and inventor of "Positioning"
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