Group 5

LUXURY
MARKETING
Beyond Rarity & The Paths of Luxury Desire
Presented By:
Naman Gupta - 17030123223

Harleen Valechani - 17030123403

Ishika Gupta - 17030123279

Hrutika Potnis- 17030123602

Chirag Grover- 17030123395
Kanishk Yadav - 17030123151
 Historical Context:
THE EVOLUTION Luxury originated as a privilege of the elite, historically

OF LUXURY associated with royalty and aristocracy. It symbolized power,

wealth, and superiority.
Over time, luxury has become more accessible, with luxury
brands expanding

Changing Definition:
Today, luxury is no longer confined to tangible rarity or
exclusivity but extends to emotional, cultural, and symbolic
appeal.
The consumer’s perception of luxury is now shaped by
experiences, storytelling, and brand identity.

Kapferer’s Perspective:
Luxury brands must evolve to remain aspirational and exclusive,
even as they expand their market reach and product lines.
THE GROWTH-EXCLUSIVITY PARADOX
The Core Paradox:
For luxury brands to grow, they need to expand their consumer
base. However, too much accessibility can erode the exclusivity
that defines luxury.

Maintaining the balance between growth and exclusivity is one of

the biggest challenges for modern luxury brands.

Examples of the Paradox:

Rolex: Despite producing nearly 1 million watches annually, it
creates exclusivity through long waitlists, limited production, and
consistent branding focused on heritage and craftsmanship.

Louis Vuitton: A widely recognized global brand but retains

prestige through high pricing, collaborations, and limited editions.

How can luxury grow while staying exclusive?

THE TWO PATHS TO LUXURY DESIRE
Kapferer’s Model of Desire:
Luxury brands achieve desirability through two complementary paths:
The Selection Path: Focused on exclusivity and control.
The Seduction Path: Focused on emotional connections and aspirational value.

The Selection Path: The Seduction Path:

Exclusivity is maintained through limited Relies on creating aspirational value through
availability, selective distribution, and emotional storytelling, celebrity endorsements,
customer curation. and luxury experiences.
Examples: Examples:
Hermès uses long waitlists and limited Gucci leverages celebrities and influencers to
production for its Birkin bags. align with youth culture.

Ferrari requires a vetted purchase history Chanel’s "No. 5 – The One That I Want"
before approving certain car models. campaign featuring Gisele Bündchen uses
emotional storytelling and cinematic visuals to
reinforce the brand’s timeless allure.
ABUNDANT RARITY
Abundant rarity refers to the strategy where luxury brands maintain the allure of
exclusivity, not through actual scarcity but by creating a perception of rarity.
Use of Artificial Scarcity
Louis Vuitton’s collaborations with Supreme, Gucci x Adidas Capsule Collections and VIP shopping events enhance
perceived rarity. Known for long waiting lists for its cars, Ferrari limits production to maintain exclusivity​.
ABUNDANT RARITY
Creating ‘exclusive experiences’ rather than just products.
Rolls-Royce’s bespoke services reinforce its image of unattainable luxury. Rolex has high perceived value because of
its high profile collections. Bulgari has reached a new level of exclusiveness, thanks to a futuristic vision of the
relationship between customer and brand.
ROLE OF BRAND EXPERIENCE
A brand’s ability to sustain desirability, especially in the luxury sector, depends on
blending its products with a well-curated experiential ecosystem that creates
emotional and symbolic connections. Core elements:

1. Store Design
Exclusive Environments: The physical retail experience is
pivotal in shaping a luxury brand’s desirability. Stores are
more than just points of purchase; they are curated spaces
that reflect the brand’s ethos and exclusivity.

Example: Hermès: Its stores exude tradition and

craftsmanship, emphasizing its heritage through subtle
design elements like handmade decor.
ROLE OF BRAND EXPERIENCE
2. Symbolism
Heritage and High Culture: Luxury brands
cultivate a connection to their history,
tradition, and cultural significance. This adds
depth to the brand, elevating it beyond a
functional product to a symbol of prestige.

Example: Chanel : Its use of iconic designs,

like the quilted bag or No. 5 perfume,
reinforces its heritage as a cornerstone of
luxury fashion​
ROLE OF BRAND EXPERIENCE
3. Social Influence
Celebrity Endorsements and Aspirational Appeal:
Associating with celebrities and influencers helps luxury
brands stay aspirational and in the spotlight. These
endorsements create a "reflected glory" effect, where
owning the product feels like being part of an exclusive
club.

Example: Tiffany & Co.: Audrey Hepburn’s association with

the brand in Breakfast at Tiffany’s turned it into a cultural
icon​
Prada : Featured prominently in The Devil Wears Prada,
creating cultural associations with high fashion and
prestige.
UNDERSTANDING VALUE
CREATION IN LUXURY

What is Value Creation in Luxury? Luxury’s Unique Value

Luxury brands create value beyond Not just performance → A Toyota may be more reliable than a
quality and functionality Ferrari, but Ferrari is more desirable due to heritage &
exclusivity
The price of luxury products is justified
by intangibles like exclusivity, prestige, More than functionality → A quartz watch is more accurate than a
and emotional appeal Patek Philippe, but Patek Philippe holds value through craftsmanship
& legacy.

The Power of Exclusivity → A Hermès Birkin is valuable

because of long waitlists and selective availability, not just
materials.
THE TRI-PARTITE MODEL

Functional Value

Individual Value Social Value

FUTURE OF LUXURY VALUE
CREATION

Balancing Growth & Personalization & Sustainability as the

Exclusivity Experience New Luxury

Selective Expansion – Brands expand reach Bespoke Offerings – Luxury shifts from mass Eco-Friendly Innovation – Luxury

through strategic collaborations & capsule brands integrate sustainable materials

prestige to hyper-personalized experiences,
collections while maintaining exclusivity. to align with evolving consumer
making each product unique. (Example: Rolls-
(Example: Louis Vuitton x Yayoi Kusama & Jeff values. (Example: Gucci Off The Grid
Royce custom-built interiors.)
Koons.) uses recycled materials.)

Digital Luxury Strategy – Some brands VIP Retail Experiences – High-end brands Ethical Craftsmanship – Authenticity
embrace e-commerce (Gucci’s online
provide exclusive clienteling services, from now includes sustainability in
exclusives), while others preserve exclusivity
private styling sessions to invitation-only sourcing, ensuring high-end quality
by restricting online sales (Chanel handbags
launches. with minimal environmental impact.
only in boutiques).
8 LEVERS OF
LUXURY
 HERMÈS

Product Superiority Selective Distribution Class and Status Actual Yet Unique
Luxury brands offer exceptional Luxury brands maintain Brans provide an aura of These brands balance
craftsmanship, noble materials. exclusivity by limiting prestige and social elevation timeless heritage with
distribution and controlling to consumers. contemporary relevance.
Example: Hermès bags are access. Example: Rolex watches Example: Louis Vuitton
handcrafted with meticulous Example: Chanel avoids signify success and affluence, collaborates with players like
attention to detail, ensuring their selling its handbags online to often associated with high Messi & CR while maintaining
prestige preserve their boutique profile personalities​ its classic monogram​
experience​
Not for Everybody Glamour Elitist Appeal Fashionable & Creative
Some brands maintain exclusivity The association with
Through this the brands Continuous innovation and
through limited availability or celebrities and high-profile
emphasize on their rich trendsetting ensure a
high pricing. events enhances luxury
history and elite status. brand’s luxury status.
appeal.
Example: Gucci reinvents
Example: Ferrari limits Example: Tiffany & Co.
Example: Rolls-Royce, with itself each season with bold
production numbers to keep gained significant
its bespoke customization designs under creative
demand high and thus keeps the recognition through Audrey
options, appeals to an elite leadership​
brand prestige intact​ Hepburn’s association in
clientele​
Breakfast at Tiffany’s
 ⁠D I G I T A L L U X U R Y A N D F U T U R E T R E N D S
The Digital Challenge

How can luxury maintain exclusivity in a world of online accessibility?

The risk: overexposure may dilute desirability.
The solution: curated digital strategies that mimic real-world scarcity

Emerging Trends in Luxury

Virtual Luxury & the Metaverse:

Gucci’s NFT collections and digital wearables.
Louis Vuitton’s interactive gaming experiences.
Sustainability & Ethical Luxury:
Prada’s Re-Nylon collection appeals to eco-conscious
buyers.
Stella McCartney’s cruelty-free luxury revolution.
Limited Drops & Online Scarcity:
Digital exclusivity drives demand (e.g., Nike x Dior
sneakers).
Luxury brands embrace hype-driven, time-limited releases.
 KEY TAKEAWAYS &
CONCLUSION
1. Luxury is an evolving concept
It is no longer about pure exclusivity but about creating perceived rarity through
storytelling, experiences, and brand management.

2. The Shift from Product to Experience

Luxury brands must offer immersive, emotional experiences beyond just superior
craftsmanship.

3. Balancing Growth Without Dilution

Expanding market reach without losing brand prestige is the key challenge.
Example: Louis Vuitton’s strategy—high accessibility but maintaining prestige through
pricing, collaborations, and limited editions.

4. Digital & Sustainability as the Future of Luxury

Digital exclusivity (NFTs, online limited drops) helps recreate scarcity.
Sustainability is no longer an option but an expectation (e.g., Prada Re-Nylon, Stella
McCartney).
"Luxury is not about what you own, but what you
experience, feel, and aspire to become."

THANK YOU