As a marketer, this should be a fairly easy question to answer.
But in today's changing marketplace, it's not.
For hundreds of years, something defined as "luxury" was something that was so well produced, so exclusive, and thus so expensive, that only the few - the elite - had access and the financial means to afford to buy it. Luxury was marketed to the rich as being a part of their social fabric, and to everyone else as being nothing more than an aspirational ideal.
But as Harry Hurt III notes in his "Off The Shelf" column in today's New York
Times, over the years the luxury category has moved from an industry once owned
by an exclusive group of family-owned fashion houses, to now a $157 billion
mass market business owned by large multinational corporations.
Along the way,
the democratization of "luxury" has lead to an erosion of what the word "luxury" truly represents in today's marketplace. As luxury brands diversify, what was perceived as luxury is no longer all that exclusive as it's now accessible to all.
Here's an interesting stat - As of last year, 40% of the Japanese population own at least one product made by Louis Vuitton.
40%!
Because of this, the Japanese account for over 40% of all luxury sales, more than Americans (17%) and Europeans (16%) combined.
Hurt's article has some extremely interesting observations about the change in how we perceive what is defined as luxury, taken from Newsweek writer Dana Thomas' new book, "Deluxe, How Luxury Lost Its Luster"
Hurt sums up the luxury dilemma by ending his article with the following observation:
"After all, what's the real luxury in being a "have" if hordes of logo-loving former have-nots can own the same products?"
Maybe all of this will lead to the creation of a new category of luxury.