Transformation of Luxury Language

Using the word “luxury” has been a hot topic among marketers. On its own “luxury” has joined other debased words like “gourmet” and “spa” to the extent that some see fit to add a distinguishing modifier such as Haute, Ultra, or even HNW (high net worth) Luxury. 

In other circles, its become ‘a four letter word’ as we saw the psychology of luxury buyers shift – the affluent felt awkward spending conspicuously, while so many others were in pain. For others, it was more about a change of perception – it simply wasn’t cool to be spending lavishly on luxury.

Even in emerging markets, care needs to be taken with the use of the word. The Chinese government took the word ‘luxury’ very seriously. 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.”

So, rather than luxury, we’re now selling exceptional quality. Rather than pampering, we’re selling wellness, stress management and rejuvenation. We’re now in the business of exclusivity, discretion, bespoke, privacy and one-of-a-kind experiences. Consumers are also willing to pay more for provenance, making a brand story the core of a product, instead of a word, message, celebrity or fancy logo.

The quintessential traits/ attributes of luxury will always be authenticity, heritage, quality, craftsmanship and service. These all embody true value. But now we have other “must haves” such as 21st century desires for new design and simplicity (the Future Laboratory calls it Heritage Modern), and 21st century values of sustainability and social conscience.

And we’ll continue to add to luxury’s vocabulary: time saving for the time starved; functionality and technology for greater productivity are becoming parts of luxury lifestyles. iPhones and iPads are prime examples, and it comes as no surprise that there are projections that Apple’s meteoric rise could soon see it overtake oil giant Exxon-Mobil and become the world’s largest company by market value.