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Commodity Marketing – Eine Einführung Read chapter Read first chapter

2014 | OriginalPaper | Chapter

The Commoditization of Luxury

Authors : Marian Makkar, Sanjaya S. Gaur, Ph. D., Sheau-Fen (Crystal) Yap, Ph. D.

Published in: Commodity Marketing

Publisher: Springer Fachmedien Wiesbaden

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Abstract

Today, the term luxury has become ubiquitous. To attain aspirational attributes, products not traditionally perceived as luxurious are associating themselves with luxury, which confuses its meaning. The term is also lost when luxury brand managers are pressured between choosing to increase sales by reaching a wider range of customers where they lose sight of luxury’s unique values and opting to guard their brands by adhering to its exclusivity and selectivity. This article explores the pitfalls that luxury companies face in today’s competitive luxury market and how counteracting strategies may lead to the commoditisation of luxury brands. These may result in the loss of luxury brands’ positioning and differentiation in the market. Recommendations to luxury goods companies are offered, presenting different tactics to avoid negative consequences of luxury brand commoditisation and methods to manoeuvre well in business environments where industries are inevitably turning brands into commodities.

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previous chapter The Contribution of the London Metal Exchange (LME) as a Base Metal Trading Platform towards Professional Marketing of Base Metals
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Metadata
Title
The Commoditization of Luxury
Authors
Marian Makkar
Sanjaya S. Gaur, Ph. D.
Sheau-Fen (Crystal) Yap, Ph. D.
Copyright Year
2014
Book
Commodity Marketing

Print ISBN: 978-3-658-02924-1

Electronic ISBN: 978-3-658-02925-8

Copyright Year: 2014

DOI
https://doi.org/10.1007/978-3-658-02925-8_25