“Luxury is a necessity that begins when necessity ends” —- Coco Chanel
The Evolution of Luxury Branding
With the advent of social progress, diversified thought processes and introduction of new perspectives, the ways of the world have opened doors to not only enrichment but also myriad alternatives. In the world where data reveals competency, and choices reveal character it has become difficult to make the right decision. A consumer faced with this variety often finds themselves in a dilemma, fueling fluctuations in market cycles.
Businesses closely monitor market trends and adapt their products to fit the cycle’s momentum, but often fall short and face scrutiny, a frequent challenge in the luxury industry where quality is reflected through subjectivity. The sector of luxury has flourished aptly despite being transcended through decades of hardships and misconceptions. Different geographies follow different understandings of luxury and subsequently show individual buying behaviors. For instance, leather goods, once valued as artistry, face ethical scrutiny, while items like Persian blue salt and Indian black pepper have shifted from luxuries to commodities. Addressing these issues requires understanding consumers’ varied perspectives and knowledge levels.
The Composition of the term ‘Luxury Brand’
Evaluating luxury branding requires examining its elements—luxury goods, labels, and retailers—which by the late 1980s, influenced by Parisian strategies, formed the hybrid term “luxury brand,” further dividing luxury into Haute and Industrialized categories.
The eminent distinction in the Haute Luxury and Industrialized Luxury guised the entirety of the concept under the microscope.
The Artist and his admirers
Haute luxury immortalises the role of the ‘artist’ or the ‘craftsmanship’ in the production of a luxury item, in this element, consumer’s need is not adjusted into the design, rather the artist and his assistants produce their masterpieces, only to be handpicked by enthusiasts of fine taste and extensive know-how. Haute Luxury encourages pure artistry rather than use of mechanical assistance, implying no automation. It celebrates the experience of buying luxury more than questioning the utility of the product, thus popularising itself for offline buying exposure. India’s Haute luxury market is niche but growing, with consumers valuing finely crafted jewelry and artisanal textiles over mass production.
The Brand of Elegance, Regality, and Mass
Industrialized luxury partakes in making creations that sell, in a robotically mechanical way where the term ‘Brand’ is highlighted to acquire consumers and revenue. In these goods, craftsmanship fades, leaving only a brand fit for online and offline markets, fueling the crisis.
An amalgamation of fine art and industrial knowledge can sustain a luxury brand when artists collaboratively design and finish creations, avoiding production lines to preserve the essence. For example, Hermès’ Kelly and Birkin bags and German watchmaker FP Journe emphasize exclusivity and artisanal quality over mass production. Similarly, India’s homegrown luxury brands like Sabyasachi manage to balance traditional craftsmanship with modern branding, making it accessible yet exclusive.
The Making of a Success Story
Building a successful luxury brand requires aligning the maker’s methods with the user’s values, creating a deep connection between them. The talent to recognise what is unexploited and explore the unknown, it takes a shrewd eye and uniqueness to understand what passes or can be passed as luxury.
When it comes to building a luxury brand from the ground up, the initial stage of acquiring an essential network proves difficult but once that stage is surpassed the rest becomes easy.
The biggest name in the history of luxury brand start up is Laurence Graff, a 15-year-old apprentice in London’s Hatten Cross jewellery district who understood the importance of exploring the Australian conflict-free pink diamonds, and created a stunning brooch for the Queen, which he later sold to the Sultan of Brunei in a brief meeting in a hotel room, establishing himself as the one of the greatest for decades to come.
Indian entrepreneurs, too, are learning to balance traditional craftsmanship with modern luxury standards. Nikhil Kamath, co-founder of Zerodha, has often remarked that India’s concept of luxury is evolving. For Kamath, luxury means meaningful experiences, sustainability, and value-driven consumption—an increasingly relevant view in the Indian market.
The Innate Desire for Luxury
To further explain, it is imperative to evaluate a key element that expands the life expectancy of the product, that is the desire for luxury. Luxury is a beauty that plays hard to get, setting it apart from commodities. It’s the allure of something just out of reach, driven by a desire for change and tangible rewards, like a sleek handbag or beautifully designed dress. This desire keeps luxury labels as well as retailers in business, the flame of high end, rarity of products.
In India, the desire for luxury is shifting from material wealth to experiential and sustainable options, with a growing interest in eco-friendly products and cultural craftsmanship.
Changing Times: The Impact on Luxury Branding
The global luxury market was hit hard by the COVID-19 pandemic, and the industry had to rapidly adapt to survive. Despite these challenges, the luxury sector has found resilience through sustainability and innovation. This shift is particularly evident in India, where the perception of luxury is also changing. With a growing middle class and rising disposable incomes, Indian consumers are becoming more conscious about products that offer both quality and sustainability. Nikhil Kamath emphasises that the new wave of luxury in India isn’t just about lavish spending but about discerning choices that reflect personal values and ethics.
The Future of Luxury in India
India presents a unique opportunity for luxury brands, both domestic and international. With its rich cultural heritage and growing economic clout, the Indian market for luxury goods is expanding. However, luxury brands must adapt to Indian sensibilities, which now lean toward sustainability, craftsmanship, and meaningful luxury. Indian consumers, particularly the younger generation, are more mindful about environmental impact and ethical practices, and they expect the brands they support to align with these values.
Conclusion: Crafting a Lasting Legacy
Luxury branding is an art form that requires a deep understanding of consumer desires, cultural trends, and timeless craftsmanship. The true essence of luxury lies in its ability to evoke desire while maintaining exclusivity. Whether through handcrafted goods or sustainable practices, brands that tap into these values will thrive in both the global and Indian markets. In India, as Nikhil Kamath observes, luxury is shifting from material wealth to a reflection of identity and values. To stay relevant, brands must innovate, honor tradition, and understand consumers’ nuanced desires to build a lasting legacy.
Know more about Pluralis Marketing Solutions | Connect with us on LinkedIn