Luxury is No Longer Reserved for the Rich classes

Historically, luxury brands were reserved for the privileged few, the rich and the elite. Nowadays, This luxurious lifestyle is living by each and other people. Luxury is no longer reserved for the rich classes therefore, segmentation approaches based on criteria such as wealth and income are insufficient.

Even if younger and less affluent consumers are more likely to afford only one or two selected items from their favorite luxury brand, they are willing to save money for this purchase and proudly present it to their reference group of this luxurious brand and luxurious lifestyle. While in the past, status-oriented thinking was considered to be the most dominant reason for luxury consumption, a much wider differentiated range of buying motives is currently the focus of research and business practice. Apart from the sheer desire for buying to impress others consumers evaluate luxury brands based on a multifaceted spectrum of values that can be distinguished along financial, functional, individual and social dimensions of luxury value perception of a luxururious lifestyle. While for the luxurious lifestyle as in the Financial Value dimension addresses monetary aspects and prestige pricing as a signal for exclusivity and uniqueness, the Functional Value dimension refers to the product’s core benefits such as superior quality and excellent performance.

In the luxurious lifestyle to  the Individual Value of luxury brands represents a customer’s personal orientation toward luxury consumption with aspects of self-identity as well as materialistic and hedonistic buying motives. Finally, the Social Value dimension of luxury value perception focuses status consumption. Considering that the motives for the purchase of luxury goods have become highly differentiated, there is no typical luxury buyer, but various consumer groups for the Luxurious lifestyle.

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