'New' Luxury Paradigm Shifts to Experience, Says Pam Danziger of Unity Marketing; Old Luxury is about the 'Thing;' New Luxury is the 'Experience'.Lifestyle Editors/Business Editors STEVENS, Pa.--(BUSINESS WIRE)--May 7, 2004 The phrase 'new luxury' is tossed around a lot of late, often synonymous with synonymous with adjective equivalent to, the same as, identical to, similar to, identified with, equal to, tantamount to, interchangeable with, one and the same as 'masstige,' i.e. mass prestige, as it applies to affordable, new generation luxury brands like Starbucks, Victoria's Secret For the Sonata Arctica single, see Victoria's Secret (song) Victoria's Secret is an American retailer of high quality lingerie and beauty products.[2] and Panera. However, the concept of mass-marketed luxury doesn't go far enough to explain the paradigm shift A dramatic change in methodology or practice. It often refers to a major change in thinking and planning, which ultimately changes the way projects are implemented. For example, accessing applications and data from the Web instead of from local servers is a paradigm shift. See paradigm. that is taking place in the luxury market today. "The real shift in the luxury market is a change in the way consumers define luxury. 'Old luxury' is defined by the attributes, qualities and features of the product, and usually refers to heritage brands that charge a premium, such as Mercedes, Christian Dior Noun 1. Christian Dior - French couturier whose first collection in 1947 created a style that became known as the New Look (1905-1957) Dior , and Cartier. 'New luxury' defines the category from the point-of-view of the consumer," explains Pam Danziger, president of Unity Marketing and author of Why People Buy Things They Don't Need. "Based on new research conducted by Unity Marketing, luxury consumers focus on the experience of luxury embodied in the goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. they buy, not in ownership or possession itself. So 'new luxury' is about the experience of luxury from the consumers' perspective, while 'old luxury' remains focused on the traditional, product-based definition of luxury." Two ways to define luxury: intrinsically and consumer-centrically In the old luxury world view, luxury is defined as the special qualities, features and attributes intrinsic to a product. In most categories, whether fashion, automobiles, furniture, linens, jewelry jewelry, personal adornments worn for ornament or utility, to show rank or wealth, or to follow superstitious custom or fashion. The most universal forms of jewelry are the necklace, bracelet, ring, pin, and earring. , or tabletop, specific product features constitute luxury. For cars it's handling and ride, leather seats and wood detailing; in jewelry, platinum and real gemstones; in linens, 500 thread- count sheets, Egyptian cotton, etc. Here the product expresses or incorporates features that confer the 'best of the best' status. Many old luxury companies stop here, focusing their resources only on creating the ultimate product. New luxury companies recognize that the intrinsic definition of luxury does not reflect the changes taking place in the luxury market today. "New luxury companies recognize the need to incorporate consumer experience and perception into the luxury branding equation. They begin by offering the 'best of the best' quality, but go that extra step to deliver not just a great thing, but a wonderful experience to the customer," Danziger says. Luxury companies like Tiffany Tiffany, Tiffanie (UK) a semi-longhaired version of the Burmese cat. It has a fine, silky coat in many colors. , Godiva Chocolatier choc·o·la·tier n. 1. One who makes or sells chocolate. 2. A place where chocolate is made or sold. [French, from chocolat, chocolate, from Spanish chocolate , Saks Fifth Avenue Saks Fifth Avenue is a chain of upscale American department stores that is owned and operated by Saks Fifth Avenue Enterprises (SFAE), a subsidiary of Saks Incorporated. It competes in the elite luxury department store market with Neiman Marcus, Bergdorf Goodman and Barneys New , KitchenAid, Sub-Zero are attuned at·tune tr.v. at·tuned, at·tun·ing, at·tunes 1. To bring into a harmonious or responsive relationship: an industry that is not attuned to market demands. 2. to this new experiential ex·pe·ri·en·tial adj. Relating to or derived from experience. ex·pe  ri·en luxury paradigm.
In recent focus groups new luxury was described as: -- Quality is in eyes of beholder. We often associate quality with expensive, but it doesn't necessarily have to go hand in hand. Sensual experience, massage, wonderful dinner, travel, a treat, something very special you do for yourself. -- A state of mind, being able to do something that I couldn't do before. -- Luxury means I can live my life in a way that I don't have to worry about money. Luxury doesn't mean labels. It means comfort. If I want to go somewhere and I am able to do it, that is luxury. -- Luxury to me is not a necessity, but a privilege. It means to be able to do things in regard to services, time, material things. -- The most luxury ever is to have enough time to do whatever you want and be able to afford it. -- I buy what I like and what I want. It is nice to have that feeling that you can do what you want when you want it. "When we talk about luxury from the consumers' experiential perspective, the brand becomes irrelevant. What matters is how the brand delivers the luxury experience it promises," Danziger says. "In other words Adv. 1. in other words - otherwise stated; "in other words, we are broke" put differently , 'old luxury' is about the thing (i.e. a noun noun [Lat.,=name], in English, part of speech of vast semantic range. It can be used to name a person, place, thing, idea, or time. It generally functions as subject, object, or indirect object of the verb in the sentence, and may be distinguished by a number of ), while 'new luxury' is about the consumer experience (i.e. a verb)." Luxury brands and the role they play in luxury purchasing is the subject of investigation in Unity Marketing's 1Q2004 Luxury Tracking Study, based on a survey of 650 households with incomes over $75,000 (one-third over $150,000). Panelists reported purchasing luxury goods and services over the most recent two months, attitudinal and expectation data about their households and the economy. Unity Marketing publishes its Luxury Tracking Study quarterly. For more information, visit http://www.unitymarketingonline.com/reports2/luxury/luxury1Q2004.html or call Pam Danziger at 717-336-1600. To arrange an interview, or other media inquiries, contact Len Stein, Visibility, 914-712-2610; lens@visibilitypr.com. About Unity Marketing Founded in 1992, Unity Marketing (www.unitymarketingonline.com) is a marketing consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a that specializes in consumer insights for luxury marketers. Pam Danziger is the company's founder and author of Why People Buy Things They Don't Need revised edition (Ithaca, NY: Paramount Market Publishing, 2004) which uncovers the motivations, desires and emotional needs that drive consumers to buy. Unity also publishes market research studies on the luxury market, jewelry, garden, pet accessories, home furnishings, gifts and collectibles, greeting card and stationery, tabletop, art and wall decor markets, as well as the Luxury Business newsletter. Pam is currently working on her second book, Let Them Eat Cake: Marketing Luxury to the Masses -- as well as the Classes, to be published in 2005. |
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