The Luxury Language of Marketing

‘Luxury’ has been a hot topic among marketers since the recent current economic crisis. In most cases, it has become ‘a four letter word’. There was a shift in the psychology of luxury buyers. For some, they felt awkward spending conspicuously, while so many others were in pain. For others, it was more about perception – it just wasn’t “cool” to be spending lavishly on luxury.

The Chinese government took this seriously. In March, Fortune reported  that public (outdoor and broadcast) advertisements in Beijing that promote luxury products are now banned (imposing a $4500 fine) from using the term “luxury.” The reasoning: the law is designed to protect social harmony, or the “increasing chasm between the rich and poor.”

We think these new regulations provide a superb environment for upmarketers to do their jobs and evolve with the times — especially for brands that don’t need to bother with the term. Consider the likes of Gucci, Rolex, Louis Vuitton, Burberry. These are not brands that use the term “luxury” in their marketing. They don’t need to. The term “luxury” (or similar) was often overused anyway, evoked by brands that strived to become (or in worse cases, pass themselves off as) true luxury brands.

So, rather than luxury, you’re now selling exceptional quality. It’s now fine or upscale. Rather than pampering, you’re selling high-level stress management and rejuvenation. Rather than glitz, glamour and showiness, we’re now in the business of premium, yet discrete, subtle and noticeable to the right people.

Moral of this marketing story: see, react, reposition.