The luxury industry represents a unique segment of the market that is radically different from other industries, both in its essence and in its approach. The key difference lies in the philosophy and strategy by which luxury brands are guided. For them, the battle is not in sales volume, but in maintaining exclusivity, value and prestige. This is the art of creating and maintaining an identity that is truly unique. Luxury brands do not enter the market to engage in direct confrontation with the competition; their purpose is beyond that kind of comparison. They are an expression of “This is who I am,” reflecting deep-seated identity and values. This approach means staying true to yourself, your history, heritage and vision, rather than succumbing to current market trends or broad consumer desires. Luxury brands are, therefore, like works of art – they do not adapt, but develop independently, guided by the vision of their creator.
The approach to production, pricing strategy, communication and attitude towards consumers in the luxury segment also differ significantly. Luxury products do not aim for mass sales or wide availability; they are created to be unattainable, thus creating a sense of exclusivity and prestige. This inaccessibility is crucial in maintaining the value and desirability of the brand. The communication of luxury brands is aimed at creating and maintaining a strong emotional connection with their customers. They don’t just sell a product; they sell a dream, an idea, a lifestyle. Luxury brands create worlds that their customers want to immerse themselves in, worlds that reflect a certain status, style and values.
All in all, luxury brands are more than product manufacturers; they are curators of unique experiences and identities, shaping the way luxury is experienced and appreciated. Their strength lies in the ability to remain consistent with their unique vision, creating products and experiences that transcend ordinary material values and enter the realm of the emotional and symbolic. Like the immutable DNA of personality that determines the uniqueness of each individual, the key characteristic of a luxury brand is its strong individual identity, i.e. . DNA of the brand. This trait determines and directs all aspects of the brand, from product design to marketing strategy, making it unique and irreplaceable in the luxury market.
The luxury industry has achieved significant growth over the last decade, becoming one of the fastest growing industries, whose value today exceeds 300 billion euros. This industry is extremely resilient to macroeconomic trends, recording steady growth over the past twenty years.
This concept, which is becoming more and more present in the world of high fashion and luxury, raises the question: why do renowned brands expand beyond the boundaries of their traditional activities?
A brand today is not just a logo or a product – it’s a comprehensive experience that weaves through every interaction with a consumer. These interactions are crucial not only for consumers, but also for shaping cultural trends. In the era of the “brand multiverse”, where brands not only intertwine with each other but also actively collaborate, just owning a product is no longer the pinnacle of the consumer experience. Today’s consumers want more – they crave total immersion in the worlds of luxury created by their favorite brands.
Luxury brands like Aston Martin and Dolce & Gabbana bring this idea to life by creating lavish, personalized experiences that transcend traditional shopping. These initiatives allow fans to not only observe, but also live in the carefully crafted universes of these brands. This strategy not only attracts new audiences, but also cements the loyalty of existing customers through unique and tangible experiences. In this day and age, superior service and hospitality are becoming the new norm in the world of luxury retail. The trend of branded hotels and cafes, which are appearing in the world’s capitals – from the Prada Caffe in the heart of London to the opulent Palazzo Versace hotel in Dubai – is just the beginning. This is the era when luxury brands become more than products – they become destinations, worlds where consumers can get lost and found, experiencing the pinnacle of luxury at every turn.
The Veuve Clicquot brand has long understood the importance of creating a lifestyle brand and is known for its interesting packaging innovations. At Veuve’s Sunny Side Up Cafe in Piccadilly, you can eat small burgers paired with gold goblets of the prestigious cuvee La Grande Dame, while in Oz, fans of the brand can catch a few waves on Veuve-branded boards at the Clickuot Hotel in Noosa. Meanwhile, The Blue Box Cafe at The Landmark, Tiffany & Co. gives a new lease of life to Breakfast at Tiffany’s, interpreting its heritage through dishes created by renowned Michelin-starred chef, Daniel Boulud.
In March 2023, Prada opened its first Prada Caffe in Harrods, London, in celebration of the brand’s 100-year anniversary. The cafe is not only a place to drink coffee in branded Prada porcelain cups, but also an interesting exhibition that communicates the brand’s history and Italian cultural heritage. The cafe offers an extremely engaging experience to customers and reconceptualizes the Prada universe in its interior design, menu, wine list, decor, crockery and atmosphere. Luxury jewelery icon Bulgari entered the hotel business in 2004 with the aim of offering “unique hotels in unique locations”. Founded in 1884 in Rome, Bulgari quickly established a strong reputation for quintessential Italian craftsmanship and unrivaled style. Today, the leader in the field of jewelry owns 8 hotels located in the great cosmopolitan cities of the world – Milan, London, Dubai, Bali, Beijing, Shanghai, Paris and Tokyo, with hotels in Miami, Rome… The hotels uniformly convey the intangible magic of the Roman brand, its timeless class and Italian heritage. Each property features Bulgari’s iconic iconography, snake symbols and the eight-pointed star in interior and exterior design details. Respecting the local culture, each hotel is designed in Italian contemporary architectural style.
Giorgio Armani, an icon of the fashion world, masterfully illustrates how a brand can be extended and transformed into a true lifestyle. His vision crossed the boundaries of the catwalk, stepping into the realm of home decor in 2000, offering clients to enrich their homes with the aesthetics and quality synonymous with Giorgio Armani. Armani Casa, with its simple lines, proportions that exude perfection and exquisite textiles, has led to a redefinition of the concept of luxury living in bedrooms, bathrooms and kitchens. Two years after that, Armani made another unexpected but successful leap – into the world of chocolate and pastries. Armani Dolci, with its philosophy of “finely blending ingredients with the style of Giorgio Armani”, is not just a sweet shop; it is an expression of the brand’s culinary sophistication and elegance. This carefully designed line of chocolates preserves Armani’s DNA in every detail – from product design and packaging to communication and service.
This horizontal brand expansion shows how one can successfully create new markets and attract new customers while retaining the loyalty of existing ones. It’s not just about product diversification; it is about redefining the brand persona, conveying its identity in new, innovative forms. Armani is proof that it is possible to preserve the essence of a brand while simultaneously evolving and adapting to the changing tastes and needs of consumers. It is a game of fine balance between tradition and innovation, creating products that not only satisfy current needs but also anticipate future desires, while maintaining the unquestionable quality and exclusivity that are the core of the brand.
