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  • The Artification of Luxury: From Artisans to Artists

    Growth is the biggest challenge for a luxury brand in that volume dilutes the brand cachet. In addition, it violates the credo of rarity on which the luxury sector is originally based. This article reveals how the current leading luxury brands use 'artification,' a process of transformation of nonart into art, to circumvent the volume problem. Artification takes time and substantial investment. It cannot be undertaken by the brands alone: It requires the active collaboration of art authorities and renowned artists. The goal is to change the status of the brand, of its founder and products, and in so doing, to reinforce the idea of a better-than-ordinary brand whose price and symbolic power are undisputed. It is also strategic for the globalization of luxury: Art is universal.
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  • Abundant Rarity: The Key to Luxury Growth

    Although Western economies have not yet transitioned out of crisis, the luxury sector is growing again, especially at the high end. In emerging countries, the luxury sector's expansion has reached double digits. However, as luxury products continue to penetrate global markets, the prestige of brands like Louis Vuitton has not declined at all. This seems at odds with the concept of luxury being tied to rarity and exclusivity. Thus, how can we reconcile these facts with theory? In order to capture mounting demands-not only from extraordinary people, but also from ordinary individuals-luxury brands enact virtual rarity tactics, construct themselves as art, and adopt a fashion business model while deemphasizing exceptional quality and country of origin. Rarity of ingredients or craft has been replaced by qualitative rarity. Further, the cult of the designer is a potent tool in building emotional connections with a vast number of clients. Today, brands in the luxury sector are actually selling symbolic and magic power to the masses. There exists a culture gap between Asia and the West; namely Asian consumers feel safer buying prestigious Western brands with which individuals around them are familiar. The insights offered herein provide clues for entrepreneurs attempting to launch luxury brands.
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