NEW YORK — The value of luxury goods, whether a Viking stove, a Hermès Birkin bag or a Montblanc pen, is tied more to what they mean to the consumer rather than how they help people cook, look or write.
“Objects are no longer about what we can afford,” said Jim Taylor, vice chairman of brand consulting firm The Harrison Group. “They’re about who we are.”
Taylor spoke about the growing significance of luxury at a luncheon on Friday at the Waldorf-Astoria at which Fashion Group International was the host. Among those who attended were Jeffrey Netzer, vice president of Neiman Marcus; Ulrich Wohn, vice president of marketing for Tag Heuer North America; Barbara Cirvka Schumacher, executive vice president of Chanel Inc., and Jay G. Spenchian, executive director of Cadillac worldwide marketing.
Related Articles
The value of luxury goods is their self-reflexive connections to a person’s self-esteem, sense of competence and personal value, Taylor said.
You May Also Like
Schumacher agreed. “The whole luxury experience is as much a part of the process as the product itself,” she said. “You’re selling a piece of the club….You are part of the Chanel club when you buy sunglasses or a lipstick. Not everybody has to enter the brand with a handbag or suit. It’s being able to make these individuals feel like they’re getting the same experience as the person buying the suit or watch, that there’s a consistency in experience.”
Protecting that experience is becoming more crucial in a retail environment where luxury is being interpreted by Isaac Mizrahi for Target and Karl Lagerfeld for H&M.
“If everyone subscribes to the notion of luxury for the masses, how do you make [your product or store] that much more luxurious so the customer appreciates it?’’ Netzer said. “That’s the challenge.”
Another is appealing to younger consumers — firms are hoping teens and young adults are entering the brand with small purchases now, and move to bigger ticket items.
“Staying relevant with this group [of young customers] over decades [is the challenge], but at the same time changing enough to keep up with their appetite,’’ Wohn said.
For Chanel, Lagerfeld’s collection for H&M has seemed to work toward that latter goal.
“[Karl’s H&M collection] is a big plus for Chanel,” Schumacher said, “because Karl is so closely associated with the brand.” The affordable H&M line doesn’t hurt Lagerfeld or Chanel’s high-style image, nor does it compete, she added. “It’s just another great entry point into Chanel.”