1.
The new dimensions of luxury
Luxury is mass, luxury is price, luxury is no longer what it once has been. What is
luxury? What distinguishes it now and in the future? We have met a specialist and
asked him, what can be done and how luxury is defined.
No later than Dr. Zetsche said the Maybach project will not be pursued, questions
were raised about the failure of the luxury brand. One thought about the product, its
design and, above all, on the strategy of those responsible. How to get the group of
rich, super-rich and mega-riches? Is it not enough to present the product to the hot
spots of the millionaires? What is the role of price, design and the distribution
channel? What motivates the target group, what doesn´t? What tools are
appropriate, which are not. Exclusive Life asked Michael Kratz, a specialist in neuro
integrated marketing communications, and interviewed him on the subjects of
luxury marketing, luxury and its values, and how to succeed as a luxury brand in a
world of increasing numbers of HNWI´s, UHNWI´s, and privileged ones.
Mr. Kratz, the concept of luxury is now apparently associated with different values
than before, or is there a new luxury?
Michael Kratz: "Well, there is a massification of luxury brands versus a luxification of
the the mass-market brands."

2.
That sounds complicated. What does it mean?
MK: "The boundaries between distinctive and affordable luxury have become
flowing. It is at this transition, very difficult to define and, what is luxury and what is
premium, apart from the super-luxury, such as a yacht. The term luxury has turned
meaningless a little, because there is super-luxury, near luxury, affordable-luxury,
ultra-premium, super premium and premium. For luxury brands, therefore, it has not
become easier to position themselves clearly and distinguish them from
competitors. "
What should a luxury brand do to clearly position their products as luxury ?
MK. "Ideally, to be clear about who you are and where you want to go as a pure
luxury brand, and here I am talking about high-end, l ´art pour l´art, pure art, unique
creation within a non-scalable market , or as a premium brand, however, exclusively
paired with high quality and service, and a certain market share. "
Give us an example.
MK: "Take the watch market. Patek Phillipe and Rolex. The boundaries here are
already flowing and a bilateral approach exists here. „Affordable“ Pattek Phillipe
watches, but also manufactured models in the range of 250,000 euros and above,
Grand Complications for example, as a driver for exclusivity or brand uniqueness.
This price region is not covered by Rolex and they will not do it, because they are
super premium affordable luxury, not, let´s say connaisseur luxury, in the sense of
manufactured masterpieces.
Is it therefore crucial for luxury and exclusivity to be related to price?
MK. "That would be against the background of the now occurring groups of
consumers of the Generation Y, short-jumping and not goal-effective,especially in
the wake of asia and other markets. Customers are increasingly looking for brands
that serve as part of a weave pattern for the construction of the self-serving ego,
and this will be used as a form of framework for the development of their own
personal lifestyles. "

3.
Do you mean that customers want to find a kind of brand spirituality?
MK: "Yes, that's quite an important way today. Brands, particularly luxury brands,
are setting more distinctive features, during the construction of a possible self-
image, the set of values, are modules for consumers, to express their personality."
Do luxury brands now rather need brand gurus than brand managers?
M.K. (laughs). "No, to be relevant for the customer as a reliable, consistent source
for the best in lifestyle content. The luxury brand has to deliver content, to succeed
sufficently, according to the four dimensions of „quality of experience“,
„involvement“, „authenticity“, and „sustainability“. "
Tell us more ?
MK: "Increasingly important is the delivery of customer-relevant authentic brand
stories, and the transformation of these into emotional and sensory learnings,
experiences and feelings, that is, creating an emotional home. This does not mean
however that as in traditional brands, only, keeping the smoldering ashes on hold,
but light the fire again and again with new stories, that is a must. Also, as a luxury
brand manager you have to keep an eye, or better two ,on the subject of
sustainability. The drivers, the inherent code for managing a luxury brand in the
future, are still, the evolution of the substance, the ceaseless search for excellence,
and the relentless pursuit of perfection.
"What is the role of Social Media?
MK: "Social media is another channel of communication for brand communication
with high binding and interaction quality, and of course, interested group efficiency.
It certainly also contributes to the quality of the services offered , but in
communication, to yield at least the profits of the brand-loyal customers and
community, it´s not the only weapon to decide the war for your brand. "

4.
Finally. Can all this be summarized in three sentences?
MK: "Let me answer it with a quote from film director Martin Scorsese." Cinema is a
matter of what's in the frame and what's out. "In other words, luxury brands are
increasingly the platform and framework, similar to a stage of life, brand relevance
for your followers, a well garnished source of fiction and spirituality for your
believers, and a weaving pattern for the evolution of their self-egos and personal
lifestyles . "
The interview was conducted by Ralf Bernert
Michael Kratz is a freelance consultant for kitzbrain emotional logics. A brand
agency for integrated neuro-marketing communications.
More about the agency you will find also on
https://www.facebook.com/pages/kitzbrain-emotional-logics/192947284090516
http://pinterest.com/emotionallogics/boards/
http://de.slideshare.net/MichaelKratz/7-seconds-kitzbrain-emotionallogics