Perpetual Prestige How Marketing Strategies Have Made Luxury Brands Timeless

By Mike Parson

Embark on a captivating journey through the evolution of luxury markets with this insightful analysis. Delve into the historical roots of iconic brands and their enduring strategies for maintaining prestige amidst modern challenges. From the impact of social media to the rise of accessible luxury, discover how brands like Rolex and Porsche have adapted, solidifying their positions as pioneers in the ever-changing landscape of luxury. Explore the post-pandemic implications for luxury brands and gain a deeper understanding of the timeless principles that shape consumer perceptions of luxury. This book offers a comprehensive exploration of the forces driving the luxury market, making it essential reading for scholars, practitioners, and enthusiasts alike.

• Language: English
• Publisher: vincenzo nappi
• Release date: Feb 9, 2024
• ISBN: 9798224599486

Book preview

Chapter One

Introduction

THIS BOOK INTRODUCES the reader to a thorough analysis of the luxury market, a field branched into sectors where century-old famous brands compete. Until the 1980s, the strategies of these brands were perennially based on centuries-old inter-company relationships, which helped invigorate the market power of the leading brands without leaving the remote possibility of smaller competitors entering the game. The big companies have built a strong and consistent distribution line, establishing a relationship with the consumer. In fact, the loyal customer has always played a pivot in the luxury market, conditioned by the end product's intangible value. Over the past 20 years, this market, although it may seem obsolete, has undergone an evolution that has made it efficient, dynamic, and resilient. The age of social has spurred accelerated consumerism, giving way to collaborations and testimonials that have increased the clientele radius.

However, multiple factors, such as the fake market and fast fashion, have shaken the waters in this sector, leading to a rethinking of business strategies. For example, some brands have promoted accessible Luxury, a move forced by the external environment that has reduced the sense of Luxury. The negative effects have fallen on brands, victims of an underestimation by the consumer affiliate. However, a niche of luxury companies has stood out in this saturated market, strengthening customer relationships and brand image; thus, how have they managed to excel and revisit themselves despite the competition and the exponential change in the external environment? These brands have revisited the perception of output in the eyes of the consumer: the product takes on lasting value and becomes a true long-term investment term for the customer. Therefore, the store of value manages to justify a markup high on the product's price and further increase the notoriety and perceptual quality of the brand. In addition, the trend of this strategy and its effectiveness in the post-pandemic period. However, an increase in the price of an asset due to overvaluation of the same could result in a speculative bubble that would minimize the store of value to a market momentum. To avoid this, a simplified stock market model will be constructed as a marketplace, which succeeds in not depleting this product property.

The case study will focus on two unrelated brands, Rolex and Porsche. Following a mirror analysis of the history and market in which the respective companies operate, the focus will be on the use of the value reserve in the marketing strategies of the two brands and how it has impacted the consumer's perception of the brand and product. Rolex and Porsche, although they belong to two different industries, have managed to apply the same strategy, strengthening the customer relationship and the prestige of the items to distinguish themselves in the market as vati of the new product concept.

Chapter Two

The luxury market

BEGINNING IN THE LAST decade of the 18th century, the world of Luxury slowly amalgamated into the Western social landscape, creating veritable pillars of timeless cultures. Serving as testimony is the treatise The New Science by Giovan Battista Vico, in which the author, drafting a critique of the lavish lifestyle of Louis XIV, senses a common thread between Luxury and ostentation that turns into obsession:

Men first feel necessary, then attend to the useful, next they feel the convenience, further they delight in pleasure, then they dissolve in luxury, and finally they go mad in scrambling for substances.

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