Book excerpt | The Mythic Value of Luxury

Dazzle is all about perception. So, there is no universal Luxe Quotient or Luxe Factor. It all depends on the sample that you choose to determine the ‘Luxe Quotient’ or ‘Luxe Factor’ of a luxury brand. Luxe Quotient or LQ is a unique measure for capturing the longing and desire for a luxury brand. It has the ability to capture the relative dazzle factor between two or more comparable brands from the perspective of a customer. So if we choose in a sample two brands of watches say Rolex and Omega, Luxe Quotient will tell you which one is more dazzling (for the same customer) in the chosen sample. That will determine a higher Luxe Quotient for that brand for you. This classification can be made even for one customer segment, say for Experientialists or Connoisseurs or Flaunters or Aesthetes. So basically a segment is chosen and brands are compared. The higher desirability for that segment of customer for one brand means Luxe Quotient is higher say for Rolex versus Omega for the segment of Flaunters. You can also take a weighted average among all four categories of customers to understand the Luxe Quotient of one brand compared with another. Dear Reader, you might recall my apple to apple comparison earlier, my dazzle with a Cartier ring or a Louis Vuitton sling just seem very lacklustre when we look at the Maharaja of Patiala’s Cartier crown with 234.69 carat De Beers diamond or Maharaja of Jammu and Kashmir’s customized 30 Louis Vuitton trunks. This difference in dazzle is captured by Luxe Factor.

This is from the perspective of the brand towards the customer. So it will be the same brand and different customers and their dazzle factors. For Louis Vuitton, which is looking at two customers, say yours truly and Maharaja of Jammu and Kashmir, I have a higher Luxe Factor for LV compared with the Maharaja. For me, the dazzle factor for the same brand is much higher. Similarly, for Cartier, my Luxe Factor for it is higher than that of the Maharaja of Patiala. The degree of dazzle is a crucial enabler that every luxury brand needs to understand very clearly. As discussed earlier, when you want to own a piece of luxury you are well aware of the premium that you will have to pay. If you are price sensitive then this will be a very difficult proposition, justifying the premium. So the best way to justify the premium charged is through the value for money route. So let us first look at the routes through which a luxury product can be a great value for money. The premium is charged because by purchasing that product you will be a part of an elite and exclusive club, you will be part of the legacy of that brand. So you are also paying to be a part of the history of the legendary brand story. Then comes the experience. When you are paying a heavy premium for a luxury purchase you are paying for the experience. However, above all these are the factors that actually draw you to make the purchase: the Luxe Quotient and the Luxe Factor. These measures the extent to which the product mesmerises you, draws you. The Luxe Quotient and Luxe Factor are simply the Razzle-Dazzle factors. The story that is weaved around the brand, the legacy that is associated with the brand and the experiential gratification that is attached to the brand all contribute towards creating this luxe and increasing this desirability.

This desirability determines the extent to which you will be able to exert yourself to indulge in the luxury brand. The craving, the eagerness, the longing, the desire, all are captured here. How much you will be dazzled is very personal and so there isn’t any universal degree of Luxe Quotient or Luxe Factor for any particular brand. It depends on the sample chosen, and so while comparing the sample is kept the same and the Luxe Quotient determines which brand is more dazzling, more desired and Luxe Factor shows it from the brand’s perspective that which customer has more desirability for that particular brand. Luxe Quotient and Luxe Factor are great tools that brands across the globe must use to study the dazzle of their brand and customer’s desirability and then they can rework their brand story accordingly to reach their desired Luxe Quotient or Luxe Factor. The Quantum of Luxury matters.

The degree of the mythic value of luxury holds the key for sustainability of the myth of the luxury brands. Therefore, every luxury brand needs to look deeper into its raison d’etre and identify the attributes that are inherent to it.

So how to create and communicate mythic value in luxury brands?

1. First step is to identify the brand attributes as well as brand associations.

2. Second, identify the opposites of these attributes. So if one attribute is youthful, the opposite will be vintage.

3. Now it is the time to plot the opposites and identify the new window of opportunity. For example, if the other two opposites are economical and expensive. Then if the norm or quadrant where the brand is operational is youthful and economical, the brand now needs to find a new window of opportunity that cannot be a conventional quadrant, for example, vintage and expensive. It always has to be an unconventional quadrant, youthful and expensive or vintage and economical. Something that looks impossible.

4. It is only once you have identified the window of opportunity for example, vintage and economical, the brand and communication planning begins.

5. So the new positioning and the communication thereof will be with the new attributes in the new window of opportunity.

So once you have been able to capture the contradictions in your brand the key is to work towards creating a new niche. After that, it is all about communication.

Always remember:

1. Whenever you communicate, make sure both the contradictions are showcased.

2. It needs to be suitably tailored to showcase a greater part of one contradiction than another. However, never forget to showcase both as the mythic value is created only with co-existence of contradictions.

It’s time to create your own myth!