Xploring in Paris

Luxury Brands – Much more valuable than I ever imagined.


Going to Paris to Xplore high net worth individuals – what can possibly be more glam?

The dizzying fusion of city lights, diamond jewelry and Champagne flutes with sparkling Dom Perignon… it's easy to be dazzled  (not to mention the 32 degree sunshine).

Our first tour of the luxury boutiques of Rue Royal and Place Vandome proved to me what I already knew: that the world is full of things I'll never be able to afford in my lifetime.

Christian Dior cellphone – $5,000
Cartier wristwatch – $4,100
Gucci coat – $3,400

I couldn’t help wondering, is it all about the price? Is the high price the only factor behind the purchase? Has the price tag itself become the brand?

Things started to look completely different after I left the shops and the salespeople, and went to meet the people buying these goods, or as we call them our 'target audience' - the truly affluent.

I quickly realized that for wealthy consumers, the price is not an issue. When you have enough money to buy any product or service you want, the thrill from buying something expensive, per se, ceases to exist.

The real need of the affluent is to acquire those things that money can't buy. A magical thrill, even if it lasts for only a moment...

As obvious as it may sound, expensive products are simply means to a higher, emotional benefit. The question is, what kind of an experience are we talking about? We figured pretty quickly that it's not about the joy of spending large amounts of money in an unrestrained matter. Vulgar displays of newfound wealth, dripping in upmarket bling, represent the corrupt side of wealth in the eyes of the old money. It's not their thing at all…

So what are the things that make our high net worth individuals tick?

They are very naïve, innocent, pure, basic thrills – experiences that recall memories of genuine romance, family moments or even revealing childhood moments – that have nothing at all to do with money.

It became very clear to me that the true value underlying those brands is much dearer than any price tag I've come across.

Amit Koren
S&S Israel

Luxury On The Inside

The surface of luxury was never truly satisfying. Labels and price tags and big names can only entice people for a moment. When money is no object, those symbols of excess soon feel empty and pointless.

Over the past few weeks we’ve heard people say they’re looking for something more. Whether it be genuine history, passionate craftsmanship, complete personalization, or simply something that money can’t buy… super affluent consumers expect more from their luxury purchases. Being expensive, famous or rare is not enough any more.

When Florence tried to tell us about her first taste of Dom Perignon, she was lost for words. Finally, we learned that the 1985 bottle had been opened with an old military sabre, and her first sip was so wonderful she has never matched it since. The experience spoke to her senses and her heart, not to her ego or her mind.

For Vincent, luxury is intimate, something only he knows that value of. He learned to appreciate true luxury from his grandparents.

“My grandmother’s collection of jewels was so beautiful, I would play and pretend to be a pirate, and she taught me about the stones. Now I’m crazy for old diamonds, with fewer cuts.” Vincent grew up to become a designer with Boucheron and now sells his own jewelry.

“Luxury should not be loud. Luxury is on the inside, not the outside.”

The media is talking about a return to refinement, but we think this is only part of the answer for luxury brands. “Toning it down” is an obvious response to the new mood of financial prudence. But refinement is often about less, we believe that affluent consumers are in fact seeking more. More meaning, relevance and personalization. More care, thought and creativity.

Opportunity: As luxury items and experiences become more refined on the ‘outside’, they must become more rich and full on the ‘inside’.

Developing a Palette

Today, Coco, Amit and I met Florence, a design consultant specializing in limited edition contemporary furniture. Her clients spend millions of euro on pieces that are very hard to come by - her job is to find them.

While some of her clients are passionate and knowledgeable about furniture, there are many who start collecting without knowing much more than the most famous designer's name. Their first purchases are simply statements of wealth. But Florence insists that even these people soon become true collectors.

"They need someone to show them the way. I always tell them the story of the item and try to find some way for them to connect with it... something they can relate to. As they learn they become more interested and they develop their own personal tastes."

On the other hand, she also believes that French people are losing their "sense of luxury." For Florence, luxury is about excellent quality and craftsmanship, along with thoughtfulness and refinement. "French people have lost their palette. We no longer know how to appreciate good wine."

She's talking about truly appreciating luxury, rather than simply buying it as a statement. And it seems that the ability to appreciate can be won or lost. An eye for design can be gained with a little guidance and experience. A palette for good wine and food can be developed with thoughtfulness and practice. And the more you appreciate a luxury item, the more you can connect with the brand/designer/vineyard...

 

This is a Lovemarks story. Stories reveal the depth and substance of luxury and build Respect. When we discover that there's more to luxury than a fancy shell and a dazzling price tag, our Lust turns to Love. 

Challenge: Encourage people to develop their palette and go beyond the surface of luxury. Transform expensive purchases into treasured items.