Premium? Luxury?

When we open any fashion or lifestyle magazine, we can see luxury products has been dominated our lives, like watches, jewelry, vehicle, and clothes. The hype is deafening and can be so confusing. As consumers, we want something “luxury “and we want to be made to feel different and special with others. However, from a marketing point of view, “luxury “has never been easy to define. The term luxury can be so vary enormously and fill of judgment. Also, the definition of luxury is depends on what we ask and what we recognize in what context.  

http://www.youtube.com/watch?v=t3TfGoyP2g0


So what is the difference between luxury and premium brands

First of all, we need to understand why people purchase luxury brand. There are plenty reason is based on the consumers’ need for high quality, exclusivity, craftsmanship, precision and innovation.

We can see the “esteem” part in Maslow’s hierarchy, all the people have a need to be respected and to have self-confidence and self-respect. Meanwhile, we need a communication to present our success or connect to others and it involves issues of self perception and self worth. These underlying reasons lie at the subconscious level of the individual and include points such as peer recognition and approval, and status.

Luxury products can be broken down into three categories: Prestige, Premium and Fashion brand.

Prestige brands such as Louis Vuitton, Rolex, Mercedes-Benz and Cartier represent a highest form of craftsmanship and command a loyal consumer following that is not affected by trends. Due to their pedigree, they are well established as status symbols. For example, If Daniel Craig or George Clooney wear an Omega watch in an advert or film, sales immediately spike.

Premium brands are those brands like Polo Ralph Lauren, Calvin Klein and Tommy Hilfiger that aspire to be luxury and prestige brands but their marketing is geared more to, as a term, an affluent mass market or mass-luxury brands.

Fashion brands on the other hand are those that address the masses and whose designs can be seasonal. Call them the “hot trends” or “fads” of the immediate moment.

However, some companies are foolish to think that they can simply launching a product with a “luxury” label attached will increase their targeted market and sales. Hence, for a real luxury brand, it takes diligent planning, execution, clever strategic marketing and PR<public relationship> buzz alongside ambiance and finesse. Besides, hard promotion and management is necessary equipped.