Unreal city
Friday, September 10th, 2010YOU walk through the airport and buy a pair of Dior sunglasses that you can afford and you feel like you have a bit of the magic.
You buy a bottle of Hermes perfume for your wife and you feel like you’ve a bit of the magic.
How does it happen?
Logos brand people: You declare you’re a member of a tribe that subscribes to that brand’s message by toting logos…essentially the dreams conjured up for you by the marketing department. Luxury-brand logos convey wealth, status, and chic.
You’ve been played by some of the savviest businessmen on the planet.
The man behind LVMH, Bernard Arnault, for instance, makes for an interesting read: he’s 100 per cent capitalist in a country that has snubbed capitalism: “For a European, I have a U.S. approach. That is, I face reality as it is and not as I would like it to be. I build for the long term.”
The luxury goods industry, says Arnault, “is the only area in which it is possible to make luxury margins”. This is the new luxury model he helped develop: enhance timelessness, jazz up the design, and advertise like crazy.
To refurbish an ailing LV, the management launched Vuitton ad campaigns that romanticised luxury travel, organised and sponsored antique car rallies such as the Vintage Equator Run in 1993 across Southeast Asia, and invited journalists on tours of the Asnieres workshop to write stories about how a Vuitton trunk was made.
It chose scruffy and Bohemian Marc Jacobs to help its ready-to-wear collections, which were critically lauded during fashion week and seen as a style bellwether for the industry. The clothes are produced in small quantities, sell for extremely high prices, and the line’s main function, it seems, is to garner headlines and dress up ads to sell leather goods.
*
Analysts estimate that 20 per cent of all luxury goods are sold in Japan and another 30 per cent to Japanese travelling abroad. Today, approximately 40 per cent of all Japanese own a Vuitton product. They claim in market studies they buy luxury goods for a logical reason: durability.
In the 1960s and 1970s, the Japanese economy flourished, giving birth to a newly flush middle class that wanted to live a more ostentatious life. Grand homes or vast real estate holdings — generally the most blatant way to enjoy as well as exhibit one’s riches — was a near impossibility in the densely populated island-nation. Instead, the Japanese chose to show their wealth by dressing richly.
How Hawaii’s Kalakaua Avenue has turned into luxury brand temples.
And how this template has moved to places like Hong Kong. And Singapore.
*
In Gucci, for instance, the “interlocking G” canvas material is very inexpensive to produce and has very low price points.
*
Luxury began in China and has now returned there, for consumption as well as production. And it is marching onward to India and Russia. The potential customer base is phenomenal. In 2006, China officially had three hundred thousand millionaires, Russia eight-eight thousand, India seventy thousand. This is the century of emerging markets. It’s the beginning of the reawakening of cultures that have historically worshipped luxury and haven’t had it for so long.
* From Dana Thomas’ Deluxe.
