Introducing the 10 Ps of Luxury Brands.

An easy guide to remember the key characteristics of luxury brands. This is Mansi's summary of the 10 features that define a luxury brand.

Whether you are a brand that's trying to appeal to a luxury consumer, a luxury consumer yourself or simply someone who follows the luxury world with interest, here's a quick mnemonic to remember the10 Ps that encapsulate what makes a luxury brand, a luxury brand.

1 Priceless

In case of luxury brands, price is not determined by the product's functional value. It isn't cost price + profit margin = Price. Neither is it about being competitive in price against the competition set. It's something larger than that.

It's not how much a customer is willing to pay, rather how much the product is worth as an art form. Art can't be priced by a formula, neither can a luxury good or service. In fact, as we learnt through the Veblen effect, demand goes up as price goes up and price goes up as time goes by.

HERMÈS DIAMOND BIRKIN 35 BRAISE SHINY POROSUS CROCODILE

18K WHITE GOLD AND DIAMOND HARDWARE, 2007

Let's understand this better with an example: Celebrated for their artistry, Himalaya Birkins are a rare find for collectors and are in high demand.

Himalaya Birkins generally sell at higher prices in the secondary market than other crocodile Birkin bags depending on the condition and age of the bag.

In 2021, the Himalaya Birkin 25 was the most sought after size and sold for over $300,000 at Sotheby's.

2 Pure

When it comes to luxury goods and services, purity in creation is key. Creating a product that is pure in its thought and design is important. It's the designer's muse, an embodiment of an idea brought to life in its purest form. It's seldom to address a need-gap, but crafted for its philosophy without any compromises.

A SERIES 5 OPEN DIAL - THE FIRST HINDU-ARABIC CREATION FROM RW SMITH

Take RW Smith for instance: A relatively new entrant - RW Smith watches only started their journey in 2001 as an official brand

Inspired by George Daniels - considered to be the greatest horologist in 250 years, RW Smith started his journey at 27 apprenticing under him. Constructing watches just for the purity of horology, RW Smith only produces about 10 watches a year, each handmade with intricate detail - paying homage to Daniel’s method.

Avg Retail Price: upwards of $150,000

Highest auction price received: $1.2Mn

“A watch should seem to have appeared out of thin air, without any sign of the maker, other than the realisation of their aesthetic.”

- Dr. George Daniels

3 Poetic:

When it comes to luxury, brand is everything. It is as important as the product, if not more. Brands in luxury are not built by focusing on the rational benefits of a product or service, rather it's a lesson in Poetry. The narrative, the story, the legacy, the dream like world of luxury comes alive through a surreal poetic story telling. In fact, it's often less about the product, but this mythical world that you become a part of, when you consume such luxury. An invite only society.

Also in this day and age of short format storytelling, luxury world takes the time to tell their stories, how else will the allure be created?

CARTIER'S SYMBOL, A POETRY IN DESIGN AND STORYTELLING

In this example of Cartier, their 2012 film is a homage to the panther, and the original panther of Cartier (Jeanne Toussaint, the Creative director of the company and the muse of Louis-Francois Cartier) - the person responsible for the iconic panther) - her creative inspirations of bold designs, exotic animals carved into jewellery that become the Cartier we know today. The film takes you on a journey across geographical muses for the designer with very little focus on the product, but a homage to how it came to be.

L’Odyssée de Cartier. THIS DIGITAL PIECE OF ART - DIRECTED BY BRUNO AVEILLAN

- A MASTERPIECE THAT TOOK 2 YEARS TO COMPLETE.

The most powerful part of a luxury brand, is it’s poetic story.

4 & 5 Popular and Prestigious

Luxury brands are so popular that they have a cult following, to an extent that they are seen as symbols of belonging to a certain elite club, as we learnt about in types of luxury consumers. There's a reason that they are recognisable from a distance and increase heartbeats, as you catch glimpses of them. And it is exactly because of this reason, that for the ones who can afford it, it makes it that much more special for them - therefore, Prestigious.

THE PORSCHE 911 - THE MOST POPULAR SPORTS CAR EVER!

THE FAMOUS SCENE FROM TOP GUN MAVERICK!

AN ODE TO THE ICONIC PORSCHE, A RECREATION OF AN ICONIC SCENE.

Taking the example of the Porsche, it is easily the most loved sports car ever, with legions of fans around the world. You'd see a Porsche poster on the walls of every kid growing up, from the poorest to the richest. With enough fandom around it, it is part of iconic pop culture from literature, to movies, to songs, you name it. It's the accessory that defines a certain stature to the characters that own in.

Similarly, it is amongst the most coveted vehicle by the rich and famous enthusiasts of motor sport. From Tom Cruise, to Sylvester Stallone, to James Dean, to Ellen DeGeneres, to Jerry Seinfeld, to many many more. Hence, a symbol of prestige.

6 Perfect:

While luxury is art, it is also the most perfect version of itself. Whatever perfection is defined as for that brand. Its unrelenting in the pursuit of perfection. From the finest craftsmanship, to the minutest detail in every little thing that goes in creation. It is perfect. To the extent, that anything that is not perfect and doesn't meet the quality standards, is disposed and destroyed. It is this search for perfection that makes one luxury brand incomparable to another.

THE ROLLS ROYCE PHANTOM EXTENDED

Every Rolls Royce ever created is perfect with the highest attention to detail. From the highest grade of leather, to handcrafted wood veneers to single panel glass housing handcrafted art, to lambswool floor mats, to the coolboxes containing handblown crystal glasses, to the highest level of technology and engineering in engine power, to quieter cabins.

Each Rolls Royce is quality, artistry and rarity personified.

So is the Bentley. And the two cannot be compared.

7 Peculiar:

Peculiarity is another thing that defines a luxury brand. The way it's designed, the unique prints, symbols, logos, rituals and aesthetics surround all luxury brands.

They are a way of expression, which are reimagined through time, taking different shapes, sizes and artistic expression but never altered from their signature style. The more peculiar it is, the more recognisable it is.

THE LOUIS VUITTON NEVERFULL WAS FIRST CREATED ONLY IN 2007, BUT IS ONE OF THE MOST FAMOUS LV BAGS

The Louis Vuitton monogram is more than a 150 years old, and has been imagined and reimagined in a variety of materials, formats, and styles.

Ranging from a wide variety of super luxe trunks to absolute pop-culture - even a Jenga set. The uniqueness of this monogram is LV’s signature - it’s own peculiar identity.

Think Burberry Checks, The Bottega Weave or the Chanel quilt - it’s the same principle.

8 Personal:

Luxury is deeply personal. This goes back to the very reason for the existence of luxury. It started from craftsmen and their patrons.

Luxury brands create exquisite products/services/experiences which is priced far beyond their functional value, yet people wait, stand in line and spend far more than it seems logical to acquire these luxuries. There is an emotion behind it - and it is personal. Luxury is about how it makes them feel, how it appeals to their personal sensibility. That's the reason why luxury brands focus so much on personalisation for their clients, from service, to communication, to customisation, these are all efforts to make it about you and you alone - for when you walk into the store, you are the only one that matters.

A SIGNATURE TIFFANY & CO. ENGAGEMENT RING

The Tiffany & Co. engagement ring was conceived 130 years ago. Today, the ultimate symbol for proclaiming ever lasting love, A Tiffany proposal is the most iconic moment, yet the most personal feeling a girl can ever feel. But, it's not just about the iconic designs alone, it's what it means to the bride being proposed to with a Tiffany ring. It is about what it means to have that ring on her finger, that the price point is irrelevant.

Hence if it’s not personal, it’s not luxury.

9 Perennial:

True luxury is prennenial, it doesn't become obsolete, in fact it gains more value over time. It is timeless and contemporary at the same time. It is passed down for generations. That's the beauty of a true luxury product - its perennial value creation for the owner.

THE OYSTER PERPETUAL DATEJUST - THE EPITOME OF THE CLASSIC ROLEX.

Created in 1945, The Datejust was the first self-winding waterproof chronometer wristwatch to display the date in the window at 3 o clock on the dial. Therefore, its name.

With its timeless aesthetics, functions and rich history, the Datejust is a watchmaking icon and one of the brand’s most recognisable watches.

10 Purpose-driven:

In this day and age, luxury brands have to remain relevant to the age of information. Gone are the days, where luxury could stay within closed circles. While affordability will still remain the privilege of few, the popularity of luxury brands means that their each step is followed by millions. In addition to that, with the growth being fuelled by a younger generation that believes in a fair world and is conscious about the choices they make - it is important for luxury brands today, more than ever, to stand for something that serves a larger purpose.

GUCCI EQUILIBRIUM IS THE BRAND’S PURPOSE TO GENERATE POSITIVE CHANGE FOR PEOPLE AND THE PLANET

From hosting dialogues on gender equality to inviting CEOs around the world to start taking action on a Carbon neutral future.

Gucci’s equilibrium is a step in the right direction to keep the younger generation of luxury consumers engaged - who do care about the exquisiteness of a luxury brand but will not stand for it if there’s no deeper meaning to the brand’s purpose.

An example of where it can go really wrong is the recent Louis Vuitton controversy where artisans who carefully create the famous LV bags unionised against the brand for not getting fair wages.

We hope you enjoyed learning about the 10 Ps. Can you think of other brand examples that fit the Ps? Drop in comments and let us know.