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Value of a Luxury Brand

1. Discuss the emotional and historical factors that contribute to the strong emotional value attached to a luxury brand. How do these factors influence customer loyalty and willingness to spend more on a brand, even during periods of weaker creativity or product quality?

Luxury Retail Selling Strategy

2. Analyze the expectations of luxury clients, particularly the Excursionists, when it comes to the quality and exclusivity of products and services. How can luxury retailers create a multi-sensory shopping experience that meets these expectations and enhances the perceived value of their brand?

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Perhaps there is no more contentious issue in the luxury market today than what makes a brand "real" luxury? The industry establishment frequently claims that this brand or that one simply doesn't measure up to their inbred standard, thus negating it as a competitive threat. But all that is changing, as the very definition of "luxury" is undergoing a paradigm shift in the consumer market.

In a survey conducted with over 600 luxury retailers and marketers by Unity Marketing and Luxury Daily, industry insiders identified that the very definition of luxury changing is the No. 1 threat to disrupting the business of luxury. Increasingly, luxury is becoming irrelevant with the result, as this insider said, "Luxury retailers and brands have lost their way."

Another insider expressed the quandary facing the luxury industry today: "The change in how consumers define luxury and the new path to purchase is dramatically redefining the marketing strategy. Luxury brands must be very agile and innovative in order to gain the favors of the new luxury consumer."

The luxury industry has an identity crisis. "The idea that luxury matters less and less to young people is a concern, as they will define what luxury means versus brands defining it via marketing efforts," said another.

The marketers' challenge is to translate their brand messages into values that are truly meaningful and relevant to today's customers' lifestyles and their increasingly sophisticated and informed mindset. But luxury marketers can't dictate anymore. They must follow the customers' lead, an idea foreign to the powers that be in the industry.

In research for my book, Putting the Luxe Back in Luxury: How new consumer values are redefining the way we market luxury, I found 10 essential values that a luxury brand must reflect to earn the title of "luxury." These values still hold in the face of the changing affluent consumer demographics, purchase behavior and their new thinking about what luxury means. But each value has to be interpreted for today's customers.

Many of the heritage luxury brands we know, like Louis Vuitton, Prada, Gucci and Hermès, meet these criteria. But so too do many new-age brands, like Shinola, the manufacturing and retailing company founded by Tom Kartsotis. There are many in the luxury industry that would argue heartedly that Shinola may be many things, but it isn't a luxury brand. I'd argue just as strongly that it is indeed luxury, and I am confident many consumers would as well.

Here's why I believe that Shinola measures up to the key qualities that define a luxury brand and how Shinola interprets these values to connect with today's evolving luxury consumer.
Ten Values That Define A Luxury Brand
Let's examine each value more closely:

1. Superior Performance - A luxury brand connects with their customers by being at the top of its class, the best in its field. It must deliver in some meaningful, measurable way better performance.

Shinola's US-built Runwell watch is the watch of presidents. President Bill Clinton has worn one for years and is said to have collected dozens of them. And President Obama is a huge fan, so much so that he commissioned the company to create a custom-made watch to gift to British Prime Minister David Cameron. It is as close as we come to the "British Royal Warrant" granted to tradespeople serving the Queen.

President Barack Obama points to his Shinola watch (AP Photo/Paul Sancya)

2. Craftsmanship - Luxury brands connect with customers by presenting the highest quality and craftsmanship. The connection is intimate and personal, like the touch of a hand.

Shinola's Built-in-Detroit roots link to the craftsmanship and engineering embodied by the city as the country's automotive capital. In a watch factory located in a historic Detroit landmark building, once the home of GM's automotive research lab, the company hand-assembles every Shinola watch.

3. Exclusivity - Luxury brands connect with customers by making them feel special and unique through the presentation of a special, unique experience. Exclusivity today is less about excluding people from enjoying the brand or limiting access; rather, it is about making customers and brand loyalists feel a member of an exclusive community linked by shared values and ideals.

Adweek proclaimed Shinola " the coolest brand in the world. " Who wouldn't want to belong to that tribe? And its story of revitalizing American manufacturing resonates deeply with the zeitgeist of today's consumer culture.

4. Innovation - Luxury brands connect with customers by presenting new visions and new ideas, all in keeping with the core values of the brand.

Shinola's entire brand myth is based on the idea of innovation, rebirth and creative ingenuity. It is reflected in its products and processes, as well as in its design of retail locations. With built-in-Detroit its core value, the company has paid tribute to the city's musical roots by creating a line of audiophile equipment of turntables, headphones and speakers.

5. Sense Of Place And Time - Luxury brands connect by being both timely, grounded in the here and now, and timeless, transcending time from the past to the future.

Shinola's 'Built in Detroit' tagline says it all. It hearkens back to the past century's industrial revolution and looks forward to the future with 21st-century engineering and manufacturing prowess. But its sense of place and time extends to its dozen retail outlets, each individually designed to be grounded in its local community, like its Brooklyn flagship store housed on the Dumbo waterfront in a former coffee warehouse.

6. Sophistication And Design Aesthetic - Luxury brands connect with an appreciation of the customers' sophistication celebrated through the brand's unique design aesthetic.

From its watches to its bicycles, leather goods, writing journals and other products, Shinola prides itself on a distinctive and unique design aesthetic that is both classic and contemporary. Its flagship stores also showcase the brand's unique vision, which its creative director Daniel Caudill describes as the "intersection of clean minimalism and 1930s industrialism."

7. Creative Expression - Luxury brands connect through the spark of artistic creativity as interpreted through the eyes of a designer or visionary.

Shinola calls out the creativity of its "makers" in an online journal that features stories about its designers. Shinola's makers celebrate the hard work and creative expression of the everyday journeyman, masters of their trade and craft, much like Messrs. Vuitton, Prada, Gucci and Hermès did in their day.

8. Relevant - Luxury brands connect by being relevant to their customers' lives and lifestyle. Relevancy makes the brand special and bespoke for the individual.

With aims to become a true lifestyle brand, Shinola continues to tap its creative team and manufacturing expertise in creating new and unexpected products across a whole range of lifestyle endeavors. Besides its core watch, bicycle and leather goods offerings, the company has dog leashes and other pet accessories, eyewear, apparel, travel guides, and a line of Shinola jewelry.

9. Heritage - Luxury brands connect with their customer through the story of its lineage and provenance.

Though it was only founded in 2011, Shinola takes its name from a 1907 shoe polish company that became part of the American cultural myth when a disgruntled World War II soldier polished his commander's boots with poop, proclaiming that he "wouldn't know shit from Shinola." Late-night show host Jimmy Kimmel refreshed his older viewer's memories, or introduced it for the first time to others, in a mock game show skit "Can You Tell S#*t from Shinola."

10. Responsibility - Luxury brands connect with their customers on a platform of social responsibility and giving back and doing good.

Shinola's interpretation of corporate responsibility is nothing less that bringing manufacturing jobs and investment dollars back to Detroit. Many of its philanthropic endeavors are focused on rebuilding Detroit, with projects creating a dog park and green alleys near its company headquarters. And in partnership with the FEED Project, it designed a line of canvas and leather FEED bags, with the proceeds donated to Detroit's only food rescue organization, Forgotten Harvest.

The title of "luxury brand" must be earned. A brand can't claim the label for itself. While brands that aspire to the designation of luxury share these 10 core values, each brand must interpret and express its luxury distinctly and in such a way that is authentic unto itself and that resonates in the minds of the customers.

Whether a heritage luxury, like Louis Vuitton, Prada, Gucci and Hermès, or new luxury, like Shinola, the real luxury of the brand isn't only or mostly about its products, its manufacturing processes, its design and style or its service. It's about a commitment to each of these values, from those working on the shop floor to the corner office and into the store where it connects with the customers.

For luxury, ultimately, isn't a product or a price point, but a mindset. The core values expressed by the brand must link the company and its staff's dedication to quality with the customers' values and aspirations. It's these people, not the product, that make a luxury brand. Or as another luxury insider said, "The name of the luxury game needs to change - It's not about the brands, it's about the people and how you make them feel - status over others is so passe!"

Contributed to Branding Strategy Insider by: Pamela Danziger, Owner, Unity Marketing

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Ten Values That Define A Luxury Brand - Branding Strategy Insider

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Perhaps there is no more contentious issue in the luxury market today than what makes a brand "real" luxury? The industry establishment frequently claims

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Discuss the opera singer analogy used in the article. How does this relate to brand consistency in luxury?

Activity idea: Rewrite this analogy using a different art form (e.g., film, fashion show, or Michelin-star kitchen) to deepen understanding.

Why is being friendly and proactive no longer enough in luxury client experiences?

Follow-up: Can you think of a time you received “friendly” service that still felt impersonal or generic?

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Opinion: How can luxury brands create deeper connections with their clients? | Jing Daily

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Luxury is pure emotion and inspiration. When this is forgotten, even the most loyal customers will leave.

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Activity 1: "Luxury Brand Personas & Psychographic Mapping" (BOYS)

Objective:
To understand the modern luxury consumer by analyzing psychographic profiles and connecting them to real-world luxury brands.

Instructions:

Divide the group into smaller teams.

Assign each team a luxury brand (e.g., Gucci, Bottega Veneta, Moncler).

Each team researches their assigned brand’s marketing strategies and product offerings.

Using insights from the article, each team maps out the likely psychographic profile(s) of their brand’s target luxury consumers. Consider:

Are they HENRYs (High Earners, Not Rich Yet)?

Do they value conspicuous or inconspicuous consumption?

Is sustainability or exclusivity important to them?

What psychological needs (uniqueness, belonging, status, self-expression) does the brand appeal to?

Discussion:
Each team present your findings, highlighting how their brand’s approach aligns with the psychological drivers discussed in the article, such as the need for uniqueness, exclusivity, or prosocial signaling through sustainability1.

Activity 2: "Design a Luxury Brand Campaign: Quiet vs. Loud Luxury" (GIRLS)

Objective:
Explore the changing trends in luxury marketing, focusing on the shift from conspicuous (loud) to inconspicuous (quiet) luxury.

Instructions:

Create a campaign for a "loud" luxury brand (e.g., Fendi, Louis Vuitton) and the other half for a "quiet" luxury brand (e.g., Bottega Veneta, Nomasei).

Each team develops a brief campaign concept that:

Identifies the core message and psychological appeal (status, uniqueness, sustainability, etc.).

Suggests marketing channels and tactics (social media, influencer collaborations, member-only events, product badges, etc.).

Considers the psychological effects of exclusivity, scarcity, and self-narrative construction.

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Unraveling the psychology behind luxury consumption.

When you think of 'luxury' what comes to mind? Is it limited-edition champagne? A spa day? A Porsche Cayenne?

Paper clips?

As the term 'luxury' continuously redefines itself, so does the luxury market and, with it, the luxury consumer.

Luxury brands have a pretty fixed idea of what luxury is and how to sell it. But if you work in luxury retail, I'm here to tell you to throw all your preconceived ideas out the window.

In 2021, modern luxury shoppers have disrupted tradition. Tends have changed the face of product-demand. On top of it all, COVID-19 has shifted people's buying behavior.

Against this volatile but dynamic backdrop, we've put together a L uxury Report to help you navigate the psychology of your luxury shoppers.

This article condenses our findings. It will answer the question "who is the luxury consumer?" from the perspective of consumer psychology, so you can have a better idea of who you're targeting in 2021 and beyond.
For more information about the state of the luxury market today, including detailed emerging trends, read our Luxury Report.
Who is the luxury consumer?

Good question. But before we start analyzing the psychology of your customers, we first have to look at their contexts. This will help to answer the question: Who is the luxury consumer?

Luxury consumer demographics: The where and who
Meet Generation HENRY
Compared to the traditional luxury consumers of the 19th century (Westerners, elite, upper-class), luxury shoppers are now defined by youth culture: GenZ and Millennials.

These are high-earning millennials who aren't rich yet. Or, in other words, HENRY's (High Earners, Not Rich Yet).

So where do HENRY's come from?

Asian shoppers drive global luxury growth. By 2025, Chinese luxury consumers will account for 50% of global luxury spending. Luxury spending in the U.S, Italy, Japan, and France is also on the rise.

ForwardPMX also found some interesting demographic results:

Luxury eCommerce shoppers have an almost equal gender split (53.4% female, 46.6% male).

Most visitors to luxury sites have both high education and income.

In the U.S, HENRYs are said to earn between $100K-$250K.

Moreover, HENRYs don't actually 'feel' rich: They have high debt, little savings, and are working full-time. Plus, the COVID-19 pandemic has caused HENRYs to tighten their purses. They account for 35% of the market but are expected to make up 50% by 2025.

So what makes this modern demographic of luxury shoppers tick and click?

Luxury consumer psychographics: The why behind the buy

Where demographics reveal the where and who, psychographics reveal the why. Why do the Chinese buy luxury goods? What's so appealing to GenZ about premium brands? Why do HENRYs like spending big?

Of course, I can't give you all the answers in a single post. However, if you do want a more extensive answer, see the Luxury Report by clicking the CTA at the end of this article.

What I can offer you today is a sneak peek of our research and insights. Here's a summary of the psychographic behavior of the modern luxury shopper:

Luxury purchases are hedonic, they trigger the release of dopamine. Luxury shoppers will buy goods to make themselves or others feel good.

Luxury purchases are often impulsive or for gift-giving (in Deloitte's study, 20.5% of Millenials bought a high-end luxury item for a particular occasion and 18.5% bought one when they wanted "to treat" themselves).

Luxury customers feel power from spending big and satisfaction from obtaining exclusive, rare, and quality products.

Luxury shoppers demand their brands to be 'woke'. They are concerned with the environment, including social and political issues. They demand that luxury brands take a stance on sustainability, race, and gender.

Compared to the spenders of the 'old' luxury elite, HENRY's prefer to be more conspicuous about their purchases. This means they like brands that are more discreet about their luxuriousness.

For instance, they won't throw lavish Gatsby-ian parties or choose products where the brand name is visible (e.g., D&G belts, Louis Vuitton bags). Instead, in an era moving towards social equality, most modern luxury shoppers don't want to show off their expensive purchases.

Of course, many millennials still shop from Fendi. Most prefer discreet brands, but not all. That's the main caveat: Every brand or retailer will have a different target audience.

Yet while there is no one-size-fits-all approach to navigating luxury consumer psychology, there are a few psychological clusters that your customer segments likely fall under.

These are:

The Need for Uniqueness

Costly Signaling and Status

Building the Self and Self-Narrative

Psychographics and psychology go hand in hand. So, without further ado, let's jump into the psychological processes behind spending big.

The psychological processes behind buying luxury goods

The need for uniqueness

Psychologists and researchers agree that one psychological trump-all for buying a luxury product is the need for uniqueness. This is based on the "uniqueness theory" which suggests that individuals tend to want to be dissimilar to others and will try to show how they're different.

The need for uniqueness in luxury consumption works on two levels:

Personal Level

Brand Level

Differentiation

Individuality

Self-expression

Innovation

Tailored/custom experiences

Unique offering

Belonging to the "in-group"

Many individuals will feel drawn to luxury brands to represent how they are different. But to cater to this, you should strike a balance between offering unique products in an exclusive way, without making your customers feel like outsiders.

In other words, you need to balance uniqueness on both a personal and brand level to succeed. There's a fine line between unique and too niche. Like Prada's paper clips: Social experiment or actual purchase?

While it's great to be unique, it's never a good idea to provide products totally isolated from trends, styles, or your audience. That's why having a strong brand legacy and being exclusive go hand in hand with this psychological principle (at the end of the day, it's all about trust).

This psychological process will most likely stick around.

As the luxury landscape tilts towards accessibility, consumers will want to stand out both on a personal and brand level, prompted by the behavior of the in-group (other luxury shoppers).

How do I apply this?

1. Highlight your brand legacy in a relevant way

Even for "new-to-the-scene" brands, you can highlight your legacy by indicating the craftsmanship of your products. Creating stories around your products in your product detail page is one way to highlight the legacy of your offering, like By Walid does for their vintage products.

Telling stories in your PDP is also a good way to show how your products are unique. You could also optimize your Google Ads with legacy messaging as PRADA does.

Porsche also uses Twitter to show how timeless and iconic their products are.

It doesn't matter what products you're selling - pillows, bags, cars - maintaining a brand heritage doesn't mean being so exclusive you can't participate in social media or digital innovation.

Luxury brands that succeed in appealing to the new consumers' need for uniqueness actually break down the barriers between their high-end products and the shopper's real-time buying experience.

2. Leverage Exclusivity Scarcity on your webshop
Matches Fashion
Another way to appeal to the need for uniqueness on both a personal and brand level is leveraging Exclusvitiy Scarcity in your marketing and messaging.

This is the psychological principle that people will respond to things that are exclusive, scarce, limited, or rare.
Net-a-porter
For example, Net-a-porter gives privileges to their members, and Gucci provides member-only access to their latest collections.

Your loyalty programs can leverage uniqueness by offering:

Exclusive first previews

Personalized or curated products

Member-only access to certain products, information, or events

Another fun way to leverage Exclusivity Scarcity is by creating hype around your anticipated product lines. For example, Supreme sneakers become exclusive even before they're 'dropped'.

PRADA also leverages this psychological principle online by using a countdown timer on their homepage. Unlike fast-fashion countdown timers, however, PRADA also shows Authority with their 'ask the designers' campaign.

This is a great way a luxury brand is appealing to the digital-natives HENRYs, whilst still remaining true to their brand legacy by using Authority and Exclusivity.

You could also leverage Exclusivity Scarcity on your webshop PLP by using product badges, which are nudges that point out your most appealing products ( Dynamic Badges like "Premium" or "Exclusive" on your products will drive behavior from the PLP to PDP).

But keep in mind that Dynamic Badges are often conspicuous, so it's about designing your badges to be inconspicuous.

These subtle, implicit nudges will work better for luxury consumers. Want to know more about employing nudge theory on-site? Read this ebook for more about nudge marketing.

Costly Signaling and Status
How Louis Vuitton became the celebrity luggage brand of choice
Many of your customers used to shop for luxury products because it made them stand out. A Louis Vuitton bag is conspicuous - it has the brand name and logo written all over it and is explicitly lavish.

Conspicuous products signal wealth and status. This is called Costly Signaling and Status and is a psychological theory that suggests people will buy luxury goods explicitly to show how they are part of an in-group of wealthy, luxury connoisseurs.

But in 2021, the new luxury consumer rejects conspicuousness.

In fact, in a report by High Snobeity, only 6% stated they purchased a luxury product as a direct expression of their wealth.

Instead, shoppers are buying from brands that are more discreet. Coupled with the emerging trend of "quiet luxury", luxury consumers are finding new ways to signal their wealth and status: Sustainability.

This kind of 'prosocial signaling' is a way luxury consumers can show off their status and belong to an in-group of pro-environmentalist shoppers. The theory suggests they will explicitly buy products with green labels - like electric cars - to signal how they've paid a higher price point for quality products.

"When both the market and offering (amount of luxury items) are increasing," explains Chief Behavioral Officer at Crobox Joris Fonteijn, "you get more diversification (specific products that fit the needs of specific segments). Less conspicuous products just make people work harder for others to see them...The people that matter (the in-group) respect it more because they "get it" whilst the rest may not see it."

How do I apply this?

1. It's easy - go green!

Sustainability is no longer a nice-to-have but a must-have. However, it's not just about pledging to 'go green'. You need to demonstrate the concrete efforts you've made towards these goals, from your supply chain to frontend campaigns.

Moncler, for example, has a separate section on their webshop dedicated to their sustainability plans. They budget for sustainability and are transparent about how they plan to achieve their goals.

If you want to show your sustainability efforts, provide proof of your ethical score like Voz does. For example, Gucci has also recently partnered with The Real Real to tap into the second-hand clothes market.

Which is very disruptive for a luxury brand, especially one that has stayed far away and even spoken against consignment and resale before.

The sustainable luxury brand Fool Dost doesn't just advertise using sustainable materials (although this is one of their USPs). They've partnered with MasterG India to promote a more ethical and eco-friendly system of manufacturing garments. The organization empowers women and the use of ethical, fairtrade materials for fashion.

The takeaways?

Prosocial signaling shows what the in-group are doing. Luxury shoppers who see their peers 'going green' will be more motivated to carry out similar behavior.

Signaling wealth can be done by showing sustainable labels, but these need to reveal concrete efforts towards green goals. Superficial sustainability will be quickly called out by the environmentally-conscious HENRY.

Sustainability is how to signal wealth and belonging to an in-group, but this should be done in a subtle, inconspicuous way.

Green campaigns that address a real issue and the ways your brand can overcome this is a good start. For example, pledging to use "100% green materials in 2025" may not sound realistic, but shifting from mass-produced materials to local materials might.

Transparency is key.

Building the self and self-narrative
Confessions of a Shopaholic
As we've seen throughout this article, luxury purchases help individuals construct a self-narrative of status, wealth, or uniqueness. They are symbolic purchases that bring individuals closer to their ideal perceived self.

But sometimes, if the product doesn't bring the individuals closer to this ideal self, they become disenfranchised with the purchase or brand.

Think of it this way: I buy a Porsche because I think it will make me appear wealthy, classic, and obtain a certain status. This anticipation of the reward triggers dopamine.

But after I actually obtain the Porsche, I'm disappointed that I have embodied none of the things I thought would make me a better person.

This counters the benefits of dopamine. Plus, I now have a ridiculously expensive car that reminds me of this conflict of selves. This has been called " imposter syndrome for luxury consumption" and causes psychological friction in:
a) building up the real self
b) the self-narrative people construct about themselves (perceived self)

Now, this might seem like a lot of psychological fluff to you. But understanding your customer's buying behavior always starts with these kinds of psychological concepts.

Which begs the question: How do I apply this?

How do I apply this?

1. Nurture your luxury customers long-term

In order to counter some of the psychological stress of imposter syndrome, you should nurture the relationship between your customers and brand. This is important to make your customers feel worthy of their purchases so that you're fostering excitement and pleasure beyond that momentary release of dopamine.

According to our Chief Behavioral Officer here at Crobox,

"If luxury retailers can foster and build relationships with their individual customers post-purchase, then they can make their brand a safe space where shoppers will feel worthy of belonging to the in-group, and not imposters. Plus, nurturing customers will more likely increase the possibility of a second purchase." -Joris Fonteijn

A couple of ways you can nurture luxury customers:

Offer tiered memberships to unlock specific rewards based on spending habits, charity donations, or the number of times they visited your webshop.

Offer VIP experiences like access to catwalks, designers, or influencers.

Cater to the interests of your segments. Profile them in terms of why they've bought what they have (psychographic segmentation) to find ways to build loyalty with them as individuals.

2. Highlight the quality of your products

#TFW Gucci's Instagram campaign archive
Luxury consumers pay premium prices for luxury goods. Fact. But the modern luxury consumer needs these prices to be justified. Also a fact.

So what do you do to cohese this mental conflict?

One way of justifying your premium prices is by highlighting the quality of your products. In fact, 39.1% of consumers say the one thing that draws them the most to a luxury brand is quality.

But you also need to stay discreet - i.e., you don't want to shout from the balconies that you're using real leather or real diamonds. Trust me, this won't fly in the twenty-first century.
L'oreal 2020 twitter campaign

YSL and Manolo Blahkin, for example, infer the premium quality of their shoes by putting the country of origin, "Made in Italy", in their product description.

According to the BCG Report, this will cater to the needs of the luxury consumer that is characterized by temperance, slow fashion, and inconspicuousness.

2. Shift your communication to the aspirational self

What we've seen throughout this article is that luxury marketing is moving away from the "unattainable self". Instead, luxury marketing constructs a self that is aspirational: Midway between desirable and realizable. By understanding this behavior, you can begin to communicate a self that is attainable whilst still remaining exclusive as a brand.

For example, Gucci's meme campaign closes the gap between catwalk high-fashion and everyday shoppers. This strategy works twofold:

1. Gucci can construct messaging that resonates with the emerging demographic segment of Gen Z'ers and Millennials.

2. They can appeal to the psychology of building a self-narrative in a way that is more realistic.

Gucci also worked with local artists to get their successful meme campaign rolling. Collabs between luxury brands and designers, artists, or smaller retailers are changing the game. Consider collaborations as a strategy towards becoming more relevant.

This is how Gucci, among others, have managed to stay customer-centric in a market where imposter syndrome often occurs. They construct an aspirational self that catches up with L'oreal's famous tagline "because you're worth it".

In the end, it's about making your customers feel worthy of their purchases.

Conclusion

In 2021 and beyond, you have to change the traditional way of marketing your luxury products. The luxury market is fragmented and volatile. Your shoppers have dynamic spending habits. And on top of it all, your top-spenders are no longer the same as they used to be, demographically or psychographically.

That's why it's so important to understand the psychological processes behind buying luxury goods. To recap, these are the psychological clusters that many of your customers will likely fall under:

1. The Need for Uniqueness

2. Costly Signaling and Status

3. Building the Self and Self-Narrative

If you're flexible, open to change, and customer-centric, you will easily reap the benefits of these 2021 opportunities!

For more on these topics, read our Luxury Report:

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Who is the Luxury Consumer? A Guide to the Psychology of Luxury

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Who is the luxury consumer? As trends and behavior change, navigating the psychology of your luxury shoppers is now more important than ever.

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1. Video Reflection & Group Discussion

Begin by watching key segments of Jerry Inzerillo’s TEDx talk, focusing on his central message: “Service is nobility, service leads to success, and service deserves recognition”1.

In your group, discuss:

What does “service as nobility” mean in the context of hospitality and tourism?

How has Jerry Inzerillo’s leadership and innovation shaped the global perception of service excellence?

Can service truly lead to both personal and organizational success? Why or why not?

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Global Trends In Luxury Hospitality | Jerry Inzerillo | TEDxWilmingtonSalon

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How would you complete a Brand Identity Prism for your assigned luxury hotel The Aman Group, and how would you present and explain each of its six facets to the class using examples and justifications?

Groups fill out the Brand Identity Prism template for their hotel, addressing each facet as shown in the slides.

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Analyze the role of 'Promotion' in luxury brand marketing. How do luxury brands use digital marketing and traditional marketing differently to maintain their brand identity and exclusivity? Provide case studies or examples to support your discussion.

Research Paper: Do write a research paper that explores the promotional strategies of luxury brands. Do include sections on digital marketing, traditional marketing, and how these strategies help maintain brand identity and exclusivity.

Note: APA 7th Edition format references should be included.

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Activity Title:
Design and Evaluate Meliá Hotels’ International Distribution Channel Strategy

Instructions

1. Map the Channels

Work together in your group to draw a visual map of all the distribution channels Meliá Hotels uses. Include direct channels (like their website and app), indirect channels (such as OTAs and travel agents), and alternative channels (like metasearch platforms).

For each channel, write down at least one strength and one weakness, using information from the article.

2. Analyze with SWOT

As a team, discuss and complete a SWOT analysis of Meliá’s distribution strategy.

What are the strengths and weaknesses of their current approach?

What opportunities and threats do you see, especially in the context of international luxury hospitality?

3. Propose Improvements

Choose one distribution channel that you think is the most important or has the most potential for improvement.

Brainstorm and outline a plan to make this channel more effective for international reach and profitability.

What digital or operational innovations could help?

How do your ideas address the weaknesses or build on the strengths you identified?

4. Present Your Work

Prepare a 3-minute presentation that summarizes your channel map, your SWOT findings, and your improvement proposal.

Present your work to the class and be ready to answer questions from your peers.

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Luxury Brand Distribution channel_Melia case (1)