Is
digital the end of luxury brands?
Luxury goods as we know them were invented/amplified/regulated by Colbert in the 1600s. At the beginning, luxury goods were better
goods--better made, better leather, etc. This was actually a huge insight, and
one that generated billions of dollars of revenue over the years.
Over time, as others figured out how to make things just as well as the
'luxury' brands could (the triumph of industrialism), the label on the item,
the brand, became at least as important as what was made. The brand is a tribal
signifier, a way of demonstrating good taste and a membership in the elite. People
pay extra partly for the privilege of paying extra. For a very long time,
a sale on luxury goods made no sense, because the fact that it wasn't on sale
was precisely what made it a luxury good.
It's this selling of the logo, of Hermes or Chanel or Champagne that made
the last fifty years of luxury production such an extraordinary opportunity.
Add to this a growing cadre of the newly wealthy, eager for a badge, and it's
nearly perfect. Feed the tribe, maintain the value of the logo and you actually
get paid a premium for making the thing cost more.
And then, the outlet stores showed up and Ralph Lauren danced the line
between mass and class, selling logos big and small, at all price points. When
anyone can make a nice shirt, which nice shirt should you pay extra for?
H&M took this even further. There's still plenty of money being spent on
the expensive, but the concentation of brand impact is diluting, quickly.
Here's what shifted just recently: In the post-industrial connection
economy, we often value networks more than we value stuff. We'd rather have a
working smart phone than a fancy car. We'd rather be invited to the right
conferences than wear expensive shoes. Logos are worth less, easier to copy and
not as valuable a tribal signifier as they were.
And yet...
And yet elites (of all kinds) still desire a way to demonstrate their
inclusion into certain groups, groups that aren't open to all. And human beings
still seek out the best of something, the item that carries with it the magic
of a trained hand, of a bespoke origin and of the nostalgia for the special
thing we remember.
I don't think think the luxury industry will disappear, but without a doubt,
it is changing. Charging more is one tactic, but it might not be the only one.
Marketing
2.08 begin
2.06 Assignment - Choose one and complete. Printed or emailed, murphyk2@gcsnc.com
Counts as HW and Quiz grade
If received by Monday +1
If Received on Tuesday no extra credit
If receive Wednesday - 1/2 credit
No credit if received Thursday or after
2.06 Fun - team slogan challenge
Marketing Management
3.06
Homework.
You will write a persuasive paper - 1 page - emailed to me - Due by Monday 8am - will not accept late assignments........"The 1994-1999 Toyota Celica (stick) is the best car to own"
No comments:
Post a Comment