Monday, April 28, 2008

Book Review: Deluxe: How Luxury Lost It's Luster


About two posts ago I mentioned the book, Deluxe. It was a great read and a well-written expose on the luxury industry and what is changing in that industry. Basically, the premise is:
1) Here is where luxury came from. Louis Vuitton, Chanel, Pucci, all these designers were artists and craftsmen that made their particular item exceptionally and their clientelle was the super rich.
2) Over time, corporations started to buy these older brands and focus just on making money. In turn, the growth demanded by shareholders served as a motivation to find a way to make more money. The emergence of the handbag is probably the biggest event that changed the luxury market. With huge margins, but cheap enough that the middle class can buy, the big luxury conglomerates had found one new way to sell the dream of luxury to everyone.
3) This "luxury for everyone" concept is watering down the idea of luxury and more crap with a good name is making it's way onto the market.
4) True luxury still exists, but man is it expensive. Hermes bags are a great example. This book has a detailed description of how they are made and it is astonishing.
All is all, the book is very interesting and it certainly points out a new facet of our society. It seems now that "Luxury" is something everyone is selling. Some people come from the bottom up, for example: The big watch made by Invicta - who the hell is Invicta? Some places take a traditional luxury trend (such as large watch faces) and just try to hop on board. You can also to do luxury from the top down - the old way. Make a product with exceptional skill, artistry, and love. If you've got talent, you product and its design will justify you ridiculous prices - example Christian Louboutin.
It is a fascinating book and the need to make ourselves special, or convey that to others, will always be a part of humanity. I guess if you are going to spend the money, do some research and make sure you're actually buying something made in Europe or that has some love behind it. Coach has been making their bags in China for a while - and no one seems to mind. I guess that is the power of the trend, which they kind of just chalk up to marketing. I'd like to have a little more faith in mankind, but alas - the proof is in the pudding.

1 comment:

Lilac - Like The Flower said...

I dunno, Mr. Dil. I have been thinking about this. What's the point of a luxury good? There are only a few:

1) To show off - effectively to associate yourself with brands in order to raise your profile in a community

2) To enjoy the quality of the good - driving the ferrari, as it were. or enjoying the leather of your hermes bag.

Coach and Kate spade are #1 products. People may say they enjoy the better quality of the product over department store brands, but in the end, we know that's mostly tripe. Or at least, it is placebo effect. But, anything with a logo-pattern necessarily falls into #1.

#2 is the true luxury brands - the ones that are barely recognizable to the average consumer (non-Vogue reader), and remain so because they have no low-end loss-leader product lines.

It seems to me that these are entirely different markets. In one, you can get a price premium for gold clasps. In the other, they want a free key ring.

And, I'm willing to bet the confusion between the markets only exists down here in our vantage point. Anna Wintour has it all down pat.