2022.12.09
Is "Luxury" Alone Not Enough? Dream-Making Marketing in the Luxury Industry (Pierre-Yves Donzé)
Many people might admire celebrities and influencers who wear high-end watches and haute couture from luxury brands. Surely, you've thought at least once about wanting to own the same items someday.
But pause for a moment. When you compare your watch with a high-end watch, do they tell time differently? The same goes for clothes; if you remove the brand tag, would you still recognize it as a luxury brand?
So, why do we still yearn for luxury brands?
We spoke to Professor Pierre-Yves Donzé from Osaka University about the marketing strategies and allure of the luxury industry.
PROFILE
Pierre-Yves Donzé
Professor at the Graduate School of Economics, Osaka University. Born in Switzerland, he graduated from Neuchâtel University with a PhD in human sciences (history). After serving as an associate professor at the Hakubi Center at Kyoto University, he became an associate professor at Osaka University’s Graduate School of Economics in 2015, and has held his current position since 2016. His specialty is global business history, and he has published numerous papers and books on the watch industry, luxury, and fashion. His latest publication is "ラグジュアリー産業―急成長の秘密―" (2022, Yuhikaku Publishing Co., Ltd.). Website: https://sites.google.com/view/donze/home
The Much-Admired Luxury Industry
First, could you tell us about your past research?
I study business history, analyzing corporate activities over long spans of 50 to 100 years.Specializing in the luxury industry, I focus on understanding the organizations that run these brands, how companies globalize, and their brand portfolios.
My first research was on the Swatch Group. This company offers a wide range of brands, from affordable options to high-end watches like Breguet. I was very curious about the advantages of owning multiple brands.
The results of that research were summarized in "機械式時計」という名のラグジュアリー戦略" (2014, Bunkasha).
Lately, I've also been focusing on accessories and fashion beyond just watches.
How can you define the luxury industry?
When defining an industry, it's common to do so by its goods or products. Take the automobile industry, for instance; both manufacturing and sales revolve around "automobiles."What about the luxury industry? It's hard to imagine specific products because luxury isn't defined by goods or products. Thus, it's understood as a "marketing segment."
Realizing this, you'll notice every industry has a segment that handles top-tier products. For example, Toyota's Lexus and SEIKO's Grand Seiko are distinguished as separate brands within the same company.
Bringing together these high-end products from various industries, we call it the "luxury industry."
Is it okay to consider "luxury" synonymous with "high-end"?
Not necessarily. This is evident from brand strategies.There are said to be three types of marketing to enhance a brand's value: "fashion," "premium," and "luxury."
"Fashion" sees rapid cycles of design and models, which is one of its attractions. It stimulates the desire to always have the latest items.
"Premium" often includes expensive items, but there's a clear reason for it. They use special materials, excellent engineering, or come with plenty of options.
On the other hand, "luxury" is essentially "dream-making." There's no significant change in the product design, and the reason for the high cost can't be rationally explained. Yet, it inspires thoughts like "I want this product" or "I want to buy it someday."
Therefore, it's not just high-end, but a product that makes you dream about owning it. That is a luxury product.
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