Marketing of Luxury goods

More than ten million people around the world are considered as High Net Worth Individuals, rich enough to afford the most expensive and absolute luxury goods. HNWIÆ s number constantly grows year after year, even during current financial crisis. Second tier of rich people, the high-end consumers: sporadic customers of premium products have been affected by the current economic crisis reducing their purchases dramatically. High-end customers and the affluentÆ s cake is disputed mainly by three large industrial groups that account for 25% of the total luxury market, which is rapidly expanding to emerging economies and at the same time is trying to stabilize demand in the mature markets, via enlarging their product portfolio through affordable line extensions to appeal the high-end customers again. Future challenge for luxury marketing will be to consider how consumers are continuously evolving mindset into new values, such as sustainability and eco-friendly luxury products, companies reputation, globalization, and more importantly that consumers are avoiding to show off their wellness, as it will be considered offensive and vulgar. Discrete consumption of luxury for the own pleasure will be a must. Above scenario and challenges is the future for luxury goods marketers, who will have to rethink not only communication means and messages but also distribution channels evolution, such as e-commerce or private show roomsÆ role. Objectives: . To understand how luxury goods have evolved to keep an exclusive appealing to high purchasing power consumers across time. . To learn about the key principles of luxury goods need to follow in order to be considered a prestigious brand for the affluent. . To assess the importance of getting the marketing principles right and aligned in order to achieve the highest quality standards that a luxury brand requires. . To understand the challenge of introducing new affordable luxury goods via brand extensions without harming the brand equity. . To find out the importance of adapting goods and marketing strategies for new emerging markets and consumers, meanwhile maintaining current franchise loyal. . To learn about new trends in luxury marketing beyond quality and beauty: ecology, sustainability, reputation, globalization, individualismà TABLE OF CONTENTS 1. INTRODUCTION TO LUXURY 2. LUXURY PRINCIPLES 3. THE LUXURY BRAND 4. FROM ARTISANS INTO INDUSTRIAL GROUPS 5. BUILDING A MYTH 6. CELEBRITIES 7. MARKETING THE MYTH 8. EXPANDING THE BRAND TO AFFORDABLE LUXURY 9. THE LUXURY MARKET . 10. NEW CHANNELS FOR LUXURY GOODS 11. THE FUTURE TRENDS IN LUXURY GLOSSARY BIBLIOGRAPHY