The Culture Of Luxury Brands

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The Culture Of Luxury Brands

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<ul><li>THE CULTURE OF LUXURY </li><li>We connect brands to culture We connect brands to culture </li><li>We study Culture people language perception behavior We study Culture people language perception behavior </li><li>INTRODUCTION What is Luxury? </li><li>INTRODUCTION In the 14th century, luxury was originally a pejorative word, denoting sinful self-indulgence. 14 </li><li>Luxury is the opposite of vulgarity Coco Chanel Luxury is not the opposite of poverty; it is the opposite of vulgarity Luxury is the opposite of vulgarity Coco Chanel Luxury is not the opposite of poverty; it is the opposite of vulgarity </li><li>INTRODUCTION WE DONT NEED IT </li><li>INTRODUCTION But it is interwoven into our own sense of self </li><li>~LUXURY~ Its unbelievable how much you dont know About the game youve been playing all your life-Mickey Mantle ~LUXURY~ Its unbelievable how much you dont know About the game youve been playing all your life-Mickey Mantle Luxury is something that we continue to study, something that in every generation gets its definitions, something that keeps developing and in movement continuously. </li><li>Luxury brands are regarded as images in the mind of consumers that comprise associations about a high level of : PRICE, QUALITY, AESTHETICS, RARITY &amp;SPECIALITY. (By Klaus Heine Dec 2011) 2011 12 </li><li>Authentic Brands deliver Poetry Authentic Brands deliver Poetry According to Forrester studies.brands that distinguish themselves on emotional attributes can capture 60 percent greater loyalty. </li><li> The compass for luxurys new codes of meaning. These four codes reflect polarities of meaning and reflect a sense of how brands must balance the realities of how culture shapes their relevance. </li><li>Rank The last bastion of conspicuous consumption. Rank The last bastion of conspicuous consumption. </li><li>1990s Consumption as a culture of keeping up 1990s Consumption as a culture of keeping up you drove a Hyundai to get here tonight, I drove an eighty thousand dollar BMW. </li><li>Rank relies on how informed you are Maestro Dobel tequilas small Batch production is noted by handwritten date and bottle numbers, as well as distiller name Dobel </li><li>We are forced to reflect on our consumption in ways we have never done before. We are forced to reflect on our consumption in ways we have never done before. We are forced to reflect on our consumption in ways we have never done before. We are forced to reflect on our consumption in ways we have never done before. </li><li>Restraint trumps decadence Guccis initiative toward FSC paper and cutting down excess packaging is only one angle of a larger sustainability campaign. FSC </li><li> With choice come Responsibility If you can afford all the riches in the world, its impossible not to feel the gravity of choice and be compelled to give back or take action. </li><li>Perfection Perfection A relentless pursuit of perfecting the process by which an object is crafted. </li><li>Control of process Is Critical Chanel buys seven of the most specialized ateliers in Paris, Ensuring continuation of the houses own couture techniques </li><li>Troon NL Dutch Dockland 18 Perfection should feed transcendence. Its emotive to do something special that no one else can </li><li>Freedom Freedom The pursuit of personal acquisition and creative accomplishments. </li><li>The power Of one The power Of one Freedom is about Creative beginnings.( like Coco Chanel) </li><li>We need to indulge In playful stories Poking fun at himself, The bitter Chocolatier tells his tales of Misfortune throughout his life through different flavors. Bitter Chocolatier </li><li>Globalization has broadened the Narrative Globalization has broadened the Narrative More than half of the growth in global demand for imports is now originating in developing countries. RECASTING ASSUMPTIONS RECASTING ASSUMPTIONS SPOTLIGHTING IRONIES SPOTLIGHTING IRONIES </li><li>100 MILLION CHINESE LUXURY CONSUMERS. INTRODUCTION </li><li>ALREADY THE SECOND LARGEST LUXURY MARKET IN THE WORLD. INTRODUCTION </li><li>INTRODUCTION THE WORLDS TOP LUXURY MARKET BY 2015. 2015 </li><li>INTRODUCTION THE ONLY COUNTRY WHERE MEN CONSUME MORE LUXURY THAN WOMEN. </li><li>INTRODUCTION THE WORLDS YOUNGEST LUXURY MARKET, WITH PEOPLE IN THEIR 30S. 30 </li><li>INTRODUCTION WHATS NEXT ? </li><li>INTRODUCTION THE NEXT GENERATION </li><li>INTRODUCTION THEY WILL LOOK AND BUY DIFFERENT. </li><li>BUT HOW? INTRODUCTION </li><li>To identify the potential for any brand behind these over-whelming figures, we need to understand what luxury buyers try to achieve and sell them what they need to succeed INTRODUCTION </li><li>Analyze changing life drivers and desires of Chinese luxury consumers to identify upcoming consumer requirements towards luxury brands. Analyze changing life drivers and desires of Chinese luxury consumers to identify upcoming consumer requirements towards luxury brands. -Which social changes shape the life drivers and motivations of chinas consumers? -Which new consumer needs will challenge Chinas rising luxury market? -How to address to these needs with products, marketing and services? </li><li>Agenda Agenda 1. Peoples Republic of Change 2. Luxury in a shift 3. 2010 Faces of Luxury 2010 4. 2011 2011 4 Tapping Chinas luxury goods market 2011 by McKinsey&amp;company April 2011. </li><li>Peoples Republic of Change Peoples Republic of Change The future of luxury is based on a fundamental change of social values from the past to the present. The future of luxury is based on a fundamental change of social values from the past to the present. Within the last 60 years Chinese consumers underwent two major value shifts, which significantly impacted their lives, beliefs and buying habits. </li><li>Three decades of communism were followed by three decades capitalism. Now China slowly transitions into three decades of consumerism. Three decades of communism were followed by three decades capitalism. Now China slowly transitions into three decades of consumerism. Peoples Republic of Change </li><li>The Chinese market is influenced by three generations, who possess contrary ideals. The Chinese market is influenced by three generations, who possess contrary ideals. 1.Baby Boomers 2.Generation X X 3.Generation Y Y Peoples Republic of Chang Peoples Republic of Change Peoples Republic of Change </li><li>Baby Boomers (1950-1964): Dominated by political figures and movements. They respond to politics and believe in heroes. 1950-1964 Peoples Republic of Chang </li><li>This generation lost its creativity with the Cultural Revolution. Following and imitating others was the only way for social development. Money is power and power is everything! The baby boomers are frugal people ,trained not to desire material goods and creaturely comfort. Nowdays some of them are the richest people in china. They splurge to impress. Money is power to them and power is everything. People republic of change </li><li>Generation X(1965-1979):A generation of realists Who wake up after Tiananmen Square protests, Who believe only in themselves . X 1965-1979 Peoples republic of change Peoples republic of change </li><li>Mr. &amp;Mrs. X are opportunists. They were educated by Mao and trained by Bill Gates. They are open to new things and appreciate originality. X Money can change your life Generation X suffers a collective insecurity from living through so much change. They therefor trust in material security and status. 60% of them buy luxury goods to increase their self-confidence! Their heroes are the rich and famous entrepreneurs who made it. X 60% Generation X is the majority of these who keep the 80% of Chinese private business running. 30% X They make money, show off the money, and spend the money. Peoples Republic of change </li><li>Generation Y(1980-1995):Possesses a Chinese mindset but a global life style Shaped by McDonalds, Google and MBAs Y 1980-1995 MBA Peoples Republic of change </li><li>Self made web-clips offer the best insight to Chinas youth detailing their dreams and believes first hand: tudou.com tudou.com I am what I am. You're serving me! Generation Y is the first Chinese generation born into consumerism. They grew up in the information age with internet and mobile phones. Y They are overwhelmed with information and personal choices. Are you Hello kitty or Rebel? Gym or yoga? Stay in china or go abroad? Artist or businessman? They are the first generation with the right to choose their career ,lifestyle and cultural affinity. Peoples Republic of change </li><li>For generation Y there is nothing wrong with hedonism and self rewarding. Y They buy because the product emotionally bond with their self identity, because of peer pressure, because its a fad. They are often educated outside China and will spend more on luxury products, because they wont know what it means to be without money. They are not frugal, nor do they buy status, believing that consumption is a part of self- expression. Generation Y represent the future of China. Today they are the ones dictating what is cool and what is not. This generation will be the first where business and political elites will be surpassed by design and style elites. Y People s Republic of change People s Republic of change </li><li>Chinas culture today is mainly determinate by security, harmony, control and formation than lust, strangeness or sensuality. Peoples republic of change </li><li>The next generation will open the door for value shift towards consumerism, self-expression and hedonism. Peoples republic of change </li><li>China turns into a global society China turns into a global society The fundamental value shift from communism to capitalism to consumerism will unleash a new type of consumer with advanced preferences towards brands, products and services. Peoples Republic of change Peoples Republic of Change Peoples Republic of Change </li><li>Agenda Agenda 1. Peoples Republic of Change 2. Luxury in a shift 3. 2010 Faces of Luxury 2010 4. 2011 2011 4 Tapping Chinas luxury goods market 2011 by McKinsey&amp;company April 2011. </li><li>This new luxury will possess elements of showing ones Status and self-reward. But the way to achieve it will shift The next level. Luxury in a Shift </li><li>There are four types of luxury consumers based on social background ,luxury experience and income level. Luxury in a Shift </li><li>While most of Chinese luxury shoppers are the Nouveau rich, many of them are still looking for their place in the world of lux. Luxury in a Shift </li><li>Nouveau Rich: Showing-off works! 65% of Chinese are convinced that who own luxury brands are successful people! 65 Luxury in a Shift </li><li>Nouveau Rich: Movie star Fan Bingbing is preferred star in advertisements and one icon for the Nouveau Rich in China. I want to stand out! Background: Entrepreneurs, celebrities or young business who are the first in their family, who can afford luxury. They still rank themselves with average people. Motivation: They want to show their success and want to stand out from the mass. They dont care about others, but due to their cultural background formation still rules. Habits: To balance formation and their longing to be special they buy the most popular brands with high mass reputation. (Armani,BMW,Mercedes,Rolex,Gucci) Luxury is in a Shift </li><li>Understaters: Not show but know! About 70% of Chinese believe that owning Luxury brands doesn't necessarily mean one is fashionable. 70 Luxury in a Shift </li><li>Understaters: Successful actor Lu Yi spends his time with his family Instead on superficial glamorous events. I want to fit in! Background: successful creative ,rich people from behind the scenece or experienced luxury consumers. They are international, speak English and understand luxury as life style. Motivation: They want to fit in to a sophisticated group of international and stylish people. They want differentiate themselves from superficial show-off attitudes. Habits: They mix establish brands with niche brands to create their individual style as long as it fits into the peer group. They tend to be a bit artistic and edgy(MINI,Y-3,Issey Miyake,Marc Jacobs,MIU MIU) Luxury is in a Shift </li><li>Connoisseurs: Already today about 60% of Luxury consumers, buy luxury to reward themselves. 60 Luxury is in a Shift </li><li>Connoisseurs : Jiang Wen is a famous movie director and king of the Chinese film. He enjoys his life away from hustle and bustle. I want to enjoy my life! Background: either they are self-made businessmen with a good self perception pr they grew up in a financial hedge. Money is seen as a key not as a treasure. Motivation: They want to enjoy life. Life balance and sensuality are very important. soft luxury is highly appreciated. Habits: They often live a quite life, Enjoy excellent foods, traveling but also doing charity activities. Luxury brands have to offer them a personal relationship, a buying experience and high quality(Bulthaup,patek philippe,ferreti yatchts, cohiba, Hennessy) , Luxury is in a Shift </li><li>Spirituals: They often overseas born Chinese. With a growing number of Chinese returning back home this group is slowly rising. Luxury is in a Shift </li><li>Spirituals: Wang Fei is a talented singer who incarnates Asian musical culture. She lives an international, individual and edgy lifestyle. I wan to find myself! Background: Grow up in a well off environment or with an artistic background. Luxury goods are nothing more than commodities for them. Motivation: They want to find the meaning of their life. They are looking for authenticity and spiritual experiences. Habits: Spirituals are often involved in charity and fundraising. Though they are highly individualistic, striving for spiritual adventures and bored by the superficial world of luxury. Reversion to nature and the primordial dominates their lives(Yo,Linda Loudermilk, Leica). , Luxury is in a Shift </li><li>Luxury is in a Shift Brand preferences of different consumer types </li><li>Luxury is in a Shift Chinas luxury market will be dominated by the Nouveau Rich and Under- Staters,but Connoisseurs will have a significant impact on them. </li><li>Luxury is in a Shift Chinas luxury market will give birth to new attitudes towards luxury to keep pace with developing mindset of Chinese luxury consumers </li><li>These upcoming attitudes are the output of sustainable shift in the mindset of luxury consumers These upcoming attitudes are the output of sustainable shift in the mindset of luxury consumers Sensuality: Authenticity Lust : Enjoyment Strangeness : Experience </li><li>With a rising consumers variety Chinas luxury market will be more diversified. Luxury is in a Shift </li><li>Chinas luxury shoppers of tomorrow are brand savvy. For them the big price tag and an even bigger label name doesnt make a product luxury. Luxury is in a Shift </li><li>Agenda Agenda 1. Peoples Republic of Change 2. Luxury in a shift 3. 2010 Faces of Luxury 2010 4. 2011 2011 4 Tapping Chinas luxury goods market 2011 by McKinsey&amp;company April 2011....</li></ul>