The traditional view of luxury has been affected by the recent changes in the luxury market. Despite this, the true luxury and prestige brands remain, unwavering and uncompromising of their core values and continuously influence their consumers' thinking. These brands have also benefited from long histories, as heritage and tradition have always played a vital role in the luxury goods sector. New brands that have devised strategies that enable them act as old brands also fall within this group.
Luxury brands that desire to succeed in the marketplace must develop strategies that address the difficult paradox of the combination of exclusivity and availability and an appeal to many while appearing to be right for only a special few. They must remain relevant to the consumer population even as the market continues to change.
While I am not going to provide you with the easy solution of listing the true luxury brands, I can suggest a simple test that can be applied to ascertain whether a brand is a true luxury and prestige brand or not:
If you move the Louis Vuitton boutique 30km away from its flagship store on Avenue des Champs Elysees, will the consumer be ready to follow the brand to the new location? If you also move the H&M boutique on rue de Rivoli 30km away, will the consumer go an extra 30km for a pair of H&M trousers or will they find an alternative?
The answers you give to these two questions will help you define luxury and non-luxury brands.
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