03 - Luxury Boundaries

Question 1

why is there a confusion between luxury and premium brands

Answer 1

1. premium brands imitate luxury codes
2. can be perceived as more innovative (ex: cars)
   - (y: innovation, x: premium) = concave trend
3. zone of price overlap b/w both
4. luxury is relative
   - ex: Lacoste (luxury in some markets, premium in EU)

Question 2

luxury vs premium: premium

Answer 2

• business model relies on creating the ‘best product’ of the category
• build fame through comparison w/ other brands
• features are developed according to consumers’ needs
• goods are tested + checked to meet the needs
• price + function are correlated
• growth is not an issue

Question 3

luxury vs premium: luxury

Answer 3

• refuses any comparison
• is superlative
• features are defined by the creator
• goods are not tested - they shape future tastes
• price + function are not correlated
• growth is an issue

Question 4

luxury vs fashion: fashion

Answer 4

• creates horizontal sense of differentiation
• social imitation (contagion of desire)
• ephemeral
• business model based on the necessity to make money

Question 5

luxury vs fashion: luxury

Answer 5

• creates vertical sense of differentiation
• social elevation
• timelessness
• does not aim to be bestseller

Question 6

similarities b/w luxury & contemporary art

Answer 6

• importance of aesthetics
• increasing value over time
• utility is of secondary importance
• impossible to get a consensus
• artistic excellence is defined by the artist’s ability to escape codes

-> any object can be considered art

Question 7

luxury vs religion

Answer 7

• values’ building
• community building

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