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    The Life of Luxury and How to Sell It
    Sharpening Your Skills
    The Life of Luxury and How to Sell It
    08 Apr 2019Sharpening Your Skills

    The Life of Luxury and How to Sell It

    by Sean Silverthorne
    08 Apr 2019| by Sean Silverthorne
    Luxury is its own market, but who shops there? Who sells there? What's the best strategy? Researchers at Harvard Business School examine consumerism at the top of the curve.
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    Research released recently by iseecars.com seems to indicate a fleeting happiness with luxury cars. New buyers of BMW, Jaguar, Land Rover, Mercedes-Benz, and Porsche sell them more frequently in the first year than owners of other models. Car owners who drive their vehicles into the ground scoff knowingly: Money can’t buy you a happy ride.

    But looking at the statistics more closely reveals a more nuanced reality. The vehicles traded in are often baseline models of those prestige brands, favored more by aspirational buyers than the filthy rich. “Despite the popularity of these vehicles, they generally have below-average reliability ratings from Consumer Reports, which could contribute to why owners get rid of them so quickly,” said iSeeCars CEO Phong Ly, in a statement accompanying the report. Owners of ultra-high-end vehicles, in general, hold on to them.

    Welcome to the potentially lucrative but often confusing dynamics of the luxury market. Harvard Business School researchers have studied the trends to answer a number of questions. Does a prestige brand like Longchamp dilute its aura by selling an affordable handbag? Does a CEO need to understand aesthetics? Is a high-end car maker better off emphasizing performance over luxury? Are luxury and sustainability mutually exclusive? And just what is the “new aspirational lifestyle?” Here is what they found.


    A Good Place to Start

    The ‘Luxury Prime’: How Luxury Changes People
    What effect does luxury have on human cognition and decision making? Researchers are finding a link between luxury and self interest, an insight that may help curb corporate excesses.


    Honda Created a Civic for Very Light Jets. How High Will It Fly?
    How Honda Aircraft Corporation moved from cheap cars and lawnmovers to multimillion-dollar aircraft.

    Having No Life is the New Aspirational Lifestyle
    It used to be that we equated power and prestige with a leisurely, luxurious lifestyle. Today, lack of leisure time may just be the real status symbol.

    Does Le Pliage Help or Hurt the Longchamp Luxury Brand?
    Longchamp's iconic but affordable Le Pliage bag is a conundrum for the company. Does an affordable luxury product work against the top-tier brand?

    How Restaurants in Lima and Copenhagen Became Best in the World
    Deconstructing ground grasshoppers, upscale Peruvian cuisine, and other surprising elements that create the perfect culinary experience.

    How Helena Rubinstein Used Tall Tales to Turn Cosmetics into a Luxury Brand
    Using guile, brilliant branding, and more than a few falsehoods, Helena Rubinstein lifted cosmetics from an accessory item for prostitutes to a great luxury product.

    A Luxury Industry Veteran Teaches the Importance of Aesthetics to Budding Business Leaders
    Pauline Brown, a former top executive with French luxury goods conglomerate LVMH Moët Hennessy Louis Vuitton, teaches a course called The Business of Aesthetics.

    Stella McCartney Combines High Fashion with Environmental Values
    Fashion designer Stella McCartney is the subject of a case study showing that luxury and sustainability need not be mutually exclusive.

    The Ferrari Way
    Secretive sports car maker Ferrari opens up about how it bucked industry trends to achieve success.

    How Would You Price One of the World's Great Watches?
    For companies with lots of innovation stuffed in their products, getting the price right is a crucial decision.

    Research Papers

    Reinventing the American Wine Industry: Marketing Strategies and the Construction of Wine Culture
    Since the 1960s, the United States has seen spectacular growth in wine consumption. This paper explores how businesses reinveted the image of wine.

    An Exploration of Luxury Hotels in Tanzania
    Why, despite being so richly endowed in touristic resources, does Tanzania receive relatively few tourists and little revenue from tourism?

    Image: iPhoto

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