Managing luxury brands

Abstract

Although luxury goods form a distinct economic sector in many countries, a certain vagueness still remains over the concepts of luxury and the luxury brand. How does the luxury brand differ from the 'up-market' brand or the ordinary brand? Are the differences simply those of degree or inherent in the luxury brand's nature? In reality the vagueness in the current definitions of luxury highlights the disappearance of certain differences, that nevertheless remain significant in the management of luxury brands and the management of, say, a quality brand. At a time when many luxury brands are losing their independence to large industrial conglomerates, that have long practised mass marketing, it is essential to recall the essential distinctiveness of luxury brand management.