Our Open Forum Panelists were:

James Dutton - Dutton Sporting Cars
James Buntin - Whisky Ambassador, Chivas Regal
Ben Albrecht - Managing Director. Kozminsky Jewellers

Moderator

Michel Hogan of Brandology

What is a luxury product?

There is no set definition of luxury as it can anything that exceeds your needs, for instance putting on some soft woolly socks after standing up all day “ahh luxury”.  In general terms though there is three types of luxury:
Everyday Luxury – Small treats that we regularly give ourselves such as fluffy socks or a celebratory meal at a restaurant.
Aspirational Luxury – Products that everyday consumers purchase after long periods of desire, such as the watch that Brad Pitt wears, the bag that Elle Mcpherson uses.
Elite Luxury  - Products & Services that are consumed by high net worth individuals and are not available to the masses.

Words used round the attributes of luxury goods can include:

• Desirable, aspirational, anticipated.
• Old world, history, provenance, romance.
• Quality, premium.
• Scarce, rare, exclusive, not offered to the masses.
• Bespoke, unique, creative.
• Beautiful, classic style.
• Expensive.  Remember, price doesn't define luxury, luxury defines price.

But the three S's of luxury products are Service, Service, Service.

Comments on the Luxury Business Model

Luxury brands do charge premium prices however there is not necessarily premium profits as the costs of service both before and after sales are vastly higher.
With most luxury brands Christmas presents account for around