Luxury is not like anything else because luxury is not a necessity. Luxury represents status that connects the consumer to the brand through loyalty. An extravagant lifestyle experience of comfort and emotional value. An luxurious offering presents a deep perception for the purpose and mission of affluent living. The experience brings pleasure and joy to those who believe in the purpose of an luxury experience.
Today over 41% of referrals to luxury brand websites still come from search engines mainly “Google” being the biggest driving force. Still search engines account for over half of visitors to high-end brand websites.
Individuals who earn over $150,000 identified as the affluent online and mobile shopper are influenced by mobile marketing. Over 80% percent of affluent shoppers earning above $150,000 use smart phones and 56% percent of this sector own tablets.
In the past only aristocrats, Chinese emperors, and European kings could afford luxury goods. Until the 1980s, every luxury brand was family owned. A game changer was when LVMH and Richemont luxury brand names became financial assets for other companies to purchase from the 1980s and up to the beginning of 1990s. This was the origin for luxury brand recognition and how brand value loyalty was created.
For only a penny Bernard Arnault decided to purchase Boussac a French textile group that went bankrupt. When Arnault made this move he elected to sell all parts of the group except for Dior, an strategic move to take over Louis Vuitton. Creating the world’s most highly adored luxury brand recognition as a financial asset in the holding for the LVMH group. This would change the history of how luxury brands emerge today and how financial assets for luxury brands are controlled.
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