Contents
Introduction
Why Luxury Now?
Everyone Everywhere Wants more Luxury
Metaphysics of Luxury: Luxury Is Ultimately the Unattainable
Branding Connects Corporate Strategy with Consumer Psychology
Finding a New Direction to Luxury: From Mass to Class and Class to Mass
Previewing What's to Come
Chapter 1: Luxury-Today's Luxury Market-Where it Came from and Where it is Going
1984 Marks the Official Birth Year of 'New' Luxury
* American Express' Sylvia Bass-Luxury is a Higher Level of Service for those with Discriminating Tastes
90's Were Go-Go Years for Luxury Marketers
Baby Boomers Are the New Luxury Generation
* House & Garden's Dominique Browning-Luxury is Creative Expression
Demographics is Destiny in 1984 and 2004
Future Vision - Consumer Market Will Increasingly Polarize with Growth at Luxury and Budget Extremes
Chapter 2: New Luxury-Old Luxury is about the 'thing,' New Luxury is defined by the Experience
Definition of Luxury Depends upon Who You Ask
New Luxury Describes the Experience
Four dimensions of luxury put new and old luxury into perspective
Luxury Is a Verb
* KitchenAid's Brian Maynard-Luxury is Personal Transformation
Luxury Must Transcend the Ordinary to Become Extraordinary
Chapter 3: Luxury Consumers-Who is a Member of the Luxury "Class"
The Missing "P" of Marketing-People
Luxury Consumer Demographics: Consumers' Greatest Satisfaction Comes from Experiences
Why Do Experiences Provide Greatest Luxury Satisfaction?
Who Qualifies for the Luxury Market?
Demographically the Affluents Are a lot Alike
Future Vision of Luxury-Rising Tide of Affluence: Boomers Key to Growth through 2010
Affluents Make More, Spend More and Save More
Luxury Consumers Feel Far Better Financially Now Than Last Year, But Their Spending Lags Their Confidence
Chapter 4: Luxury Consumers-The Luxuries They Buy and How Much They Spend
Shifts & Turns in Luxury Consumer Purchase Behavior
Lifestyle Changes Trigger Luxury Spending
Product-Perspective of Luxury
Luxury Electronics & Experiential Luxuries Show Biggest Growth in Purchase
Less Emphasis on Luxury Home Décor in 2003
Future Vision of Luxury - Connecting Replacing Cocooning as Prime Consumer Trend
* Real Simple Magazine's Robin Domeniconi-Luxury is Simplicity: the New Mantra for Luxury Living
Luxury Consumers Still Improving their Dining and Cooking Experiences
* Martin's Herend Imports' Lisa Behe-Luxury is Hand-Crafted Perfection
Jewelry and Watches Are Strong Personal Luxury Performers in 2003
Experiential Luxuries Get a Boost in 2003
* Starwood's Douglas McKenzie-Luxury is Delivering an Experience that Transcends Ordinary Luxury Hotel Services
Purchase Incidence Increases with Income
Luxury Spending Increased in 2003
Super-Affluents Spend More Than 4.5 times What Near-affluents Spend on Luxury
Why People Buy Luxury: The Emotional Underpinnings of Luxury Consumer
Chapter 5: Inner-Life of the Luxury Consumers-Field Guide to the New Luxury Consumers
The Drives and Motivations Propelling the Luxury Consumer in the Marketplace
Field Guide to Luxury Consumer Segments
Butterflies Have Emerged from their Luxurious Cocoons
Butterflies Spend Freely on Luxury
Luxury Cocooners are Still Enveloped in their Luxury Cocoons
Cocooners Spend More on Home and Home-Focused Experiential Luxuries
Luxury Aspirers Have Not yet Reached the Level of Luxury to Which They Aspire
X-Fluents Live the Lifestyle of the 'Rich and Famous'
X-Fluents Spend More On Luxury
X-Fluents Most Active Luxury Purchasers, Followed Closely by Butterflies
Future Vision of Luxury-Luxury Consumers Are Seeking Equilibrium to Reduce Stress
Chapter 6: Luxury Home Products-The Products that Deliver to the Peoples' Passion
Overview
Products Must Deliver Luxury Performance
* Sub-Zero's Paul Leuthe-Delivering Luxury Kitchen Performance
Home Luxuries-Not All Home Spending is Created Equal; Some Is an Investment, the Rest Is Expense
* Best Buy's Barry Judge-Luxury is a Sanctuary within Chaos
Linens and Bedding are Second Most Widely Purchased Home Luxury
* SFERRA Fine Linens' Paul Hooker-Luxury is the European Tradition of Fine Linen
Luxury Kitchenware and Housewares Is Third Most Purchased Home Luxury
Luxury Consumers Spent Slightly Less on Home in 2003
Super-Affluents Spend Nearly 4 Times More than Near-Affluents on Home
Luxury Home Market Potential is $126 Billion
Home Luxuries Are Bought on Sale
Department Stores Are First Choice for Luxury Home Shoppers
Brand's Role in Home Luxury Purchase Is Most Important in Electronics
Future Vision of Luxury-Home Luxury Prospects are Mixed
* Hunter-Douglas' Kim Kiner-Luxury Combines Style and Function
Chapter 7: Personal Luxury Products-Personal Luxury Performance Parameters
Personal Luxuries Are Things You Wear or Drive
* Cargo's Ariel Foxman-Luxury is Knowledge that Money is Well-Spent
Indulgence in Personal Luxuries Apparently Declined Somewhat in 2003
* Aeorsoles' Kimberley Grayson - The Ultimate Luxury in Shoes Is Comfort
Total Personal Luxury Spending Reached $2,500
Super-Affluents Are Most Extravagant Spenders on Personal Luxuries
Personal Luxuries Market Potential
With Exception of Fragrances and Beauty Products, Personal Luxuries Are Bought on Sale
* Guthy-Renker's Michelle Taylor-Luxury is Skin Science Combined with Beauty Know-How
Top Choices for Personal Luxury Shoppers: Department Stores, Specialty Luxury Retailers and Internet/Mail Order/TV Shopping
Brand's Role in Purchase Most Important in Automobiles and Beauty Products
Future Vision of Luxury-Personal Luxuries Will Become More Important
Chapter 8: Luxury Services & Experiences-It All Comes Down to the Experiences
Luxury Consumers Yearn for Experiences
* Matterhorn Nursery's Matt Horn-Luxury is an Escape into Nature
Self-Actualization Is the Ultimate Goal for Luxury Consumers
When Things Are Not Enough; Luxury Consumers Express Desire for Experiences
Future Vision of Luxury-Next Luxury Boom Will Be in Experiential Luxuries
Purchase Incidence of Experiential Luxuries Boom
* Cosmetic Surgeon Dr. Paul Glat-Luxury is Looking Good
Luxury Consumers Spent More than $9,000 on Experiential Luxuries
Super-Affluents Spend About Twice the Average on Experiential Luxuries
Experiential Luxury Market Potential
Except for Travel, Most Experiential Luxuries are Full Price
Fine Dining Is More About the Experience than the Food
Travel is Priority for Luxury Consumers
* Crystal Cruises' Gregg Michel-Luxury is Spaciousness Combined with Choices
Travelers Want to Create Memorable Experiences
Chapter 9: Pricing Luxuries-It Has Very Little to Do With Money
The Frugal Affluent Shoppers
* Volkswagen's Karen Marderosian-Luxury is Adapting the People's Brand for Today's Affluent Marketplace
Getting a Bargain Is How Luxury Consumers Measure their Winnings in the Shopping Game
The Luxury Pricing Equation: How Much Does a Feeling Cost?
Luxury Consumers Have a Good Idea What the RIGHT Price Is
Luxury Pricing Challenge-Triple the Value, but only Double the Price
* Riedel Crystal's Maximillian Riedel-Luxury is Delivering a True Wine-Tasting Experience for Different Wines
Money Is Symbollic
Chapter 10: Promoting Luxuries-The Myths and Mysteries of Luxury Branding
Influencers in Luxury Buying
Luxury Marketing Myth #1: Advertising Is Key to Promoting and Selling Luxuries
Reality: The Luxury Branding Triple Play Generates Sales: The Product Brand, Dealer's Brand, Price/Value Interact to Make Sales
* Polo Ralph Lauren's Jeffrey Morgan-Luxury is Telling a Story Through Different Retail Worlds
Luxury Marketing Catch-22: How Do You Build A Luxury Brand if Advertising Doesn't Work Anymore?
* M & C Saatchi's Kate Bristow and Adam Leavitt-Luxury Is Advertising that Spins a Feeling of Specialness Through a Story
Luxury Marketing Myth # 2: Luxury Consumers Buy Because of the Brand
Reality: Brands Justify Purchase; They Are Not Reason Why People Buy
Luxury Marketing Myth #3 Exclusivity Is Critical to Maintaining the Allure of Luxury Brands
Reality: Individuality and Uniqueness Are Luxurious: Exclusivity - It Is Better Because Only I Can Have It and You Can't - Is Definitely Not the Appeal
Luxury Marketing Myth # 4: Luxury brands are something you own and have
Reality: Brands Must Perform - Luxury Brands Must Satisfy Luxury Consumers' Performance Expectations
Luxury Marketing Myth # 5: Luxury Brand Awareness Means Marketing Success
Reality: Brand Loyalty, not Awareness, Measures Meaningful Consumer Connection with the Brand
* Brand Keys" Robert Passikoff-Luxury Brands Are Like Other Brands, Only More So
Luxury Marketing Myth # 6: Luxury Brand Is about the Product
Reality: Luxury Brands Connect Corporate Strategy with Consumer Psychology
Ten Thousand Villages Doug Dirks-Luxury is Doing Good
New Luxury Branding Paradigm
Chapter 11: Retailing and Selling Luxuries-Everything About Shopping Has Changed and It's Never Going Back to the Way It Was
Retail Sales Are Shifting
* Taubman Company"s William Taubman-Luxury is Thinking Globally but Acting Locally
In Retailing: As Below at Mass, so Above with Class
* Saks Fifth Avenue's Kimberly Grabel-Luxury Loses Its Meaning When Everything is Luxury
Shopping Is No Longer About the Thing, But the Shopping Experience
* JGA's Ken Nisch-Luxury is Turning More Implicit, Less Explicit; More Intelligent, Less Obvious
Where the Affluents Shop for Their Luxuries
Future Vision of Luxury-Luxury Must Extend Through the Entire Buying Cycle
Internet Is Right at the Top of Places Where Luxury Consumers Shop
* Cooking.com's Tracy Randall-Luxury Delivers Enhanced Cooking Experience
Television Shopping Is Breaking the Mass-to-Class Barriers
* QVC's Doug Rose-Luxury is Pleasure Shopping
Chapter 12: Lessons For Marketing Luxury to the Masses and the Classes, and Everyone in Between-It all Starts and Ends with the Consumers' Experience
Key Research Findings
Lesson # 1-Luxury Marketers Need to Add a New Marketing "P"-Performance-to Gauge the Success of their Marketing Efforts
Lesson # 2-Luxury Is an Experience Everyone Wants and Believes They Deserve, so Give It to Them
Lesson # 3-The Affluent Market Is Sweet, but the Mass Market Is Sweeter, so Look beyond your Traditional Market Segments
Lesson # 4-Give your Luxury Consumers an Exit Ramp off the 'Mass Track'
Lesson # 5-No Matter Where You Market along the 'Masses' to 'Classes' Scale, You Can always Add More Luxury Value
Lesson # 6-Luxury Marketers Need to Strategize for 'Luxflation' to Counteract the Downward Gravitational Pull of Luxury from the Classes to the Masses
* Godiva's Michael Simon and Chocolate Marketing's Joan Steur - Luxury Is in Perpetual Motion from Class to Mass, then Back to Class Again
Lesson # 7- Luxury Marketers Must Embrace a Luxury Branding Paradigm that Combines Product Features and Benefits with Consumer-Centric Luxury Values
Lesson # 8- Nurture Brand Evangelists to Spread the Word about the Luxury Values Your Brand Delivers
Lesson # 9- The Price Communicates on Many Different Levels; Know and Understand the Experiential Dimensions of Luxury Pricing
Lesson # 10- Brand Awareness Is Not Enough Anymore; We Need to Connect More Personally with Consumers
Lesson # 11- Luxury Is All About the Fantasy; Help Your Consumers Create and Live their Personal Fantasy

Acknowledgments
Appendix: Research Objectives and Methodology
Bibliography
Index