I have been asked by several entrepreneurs about Premium vs. Luxury vs. Fashion products and how should they classify them. I thought I share my answer with the BOBs. Luxury goods are needlessly expensive. By needlessly, I mean that the price is not related to performance. The price is related to scarcity, brand and storytelling. Luxury goods are organized waste. They say, I can afford to spend money without regard for intrinsic value. That doesnt mean they are senseless expenditures. Sending a signal is valuable if that signal is important to you. ex. Louis Vuitton, Rolex, Mercedes-Benz and Cartier represent a highest form of craftsmanship and command a loyal consumer following that is not affected by trends. Due to their pedigree, they are well established as status symbols. Premium goods, on the other hand, are expensive variants of commodity goods. Pay more, get more. Figure skates made from kangaroo hide, for example, are premium. The spectators dont know what theyre made out of, but some skaters believe they get better performance. Theyre happy to pay more because they believe they get more. ex. brands like Polo Ralph Lauren, Calvin Klein and Tommy Hilfiger that aspire to be luxury and prestige brands but their marketing is geared more to, as a term, an affluent mass market or mass-luxury brands. Fashion goods, on the other hand are those that address the masses and whose designs can be seasonal. Call them the “hot trends” or “fads” of the immediate moment. Note: Luxury is self expression, an exceptional experience and a feeling of sense of emotion. There is also a difference between a “luxury” and a “premium” product but they can be both.
Posted on: Thu, 15 Jan 2015 18:45:03 +0000
Trending Topics
Recently Viewed Topics
© 2015