One of the reasons luxury brands stayed away from Social Media in the past is because luxury, as part of its definition, needs to be exclusive. Making one’s brand immediately accessible and opening it up for all to see went against the very thread of its being. But now, luxury brands see no other way to recover. The trick will be how much to engage in a personal, direct conversation with general consumers and how much to still remain mysterious and exclusive. At the National Retail Federation’s recent conference (held at the Javits Center in NYC) a new term emerged that describes this emerging phenomenon: “The New Luxury Paradigm.”
Wealth used to be measured in how much one had and how much they spent. Today, the new definition of wealth embodies a more tenured approach to opening one’s wallet. It seems passÃ© to look like one is wasting money. Instead of purchasing a few big ticket goods, luxury consumers are gobbling up smaller ticket items, but in greater number. Social Media serves as a way to not only connect with these new tastes, but to discover what tastes stick and which don’t go down so well. As wealth becomes less exclusive, it becomes more refined. Where before it used to be about one’s net worth, now it’s about how one lives their life. Value continues to play a key role regardless of what purchases are being made and in the luxury space, “value” often goes beyond price to embody quality and design. These elements are becoming more important than simply the value of a dollar. How do we know this? From extensive, new social marketing.
With research and development costs in the luxury retail factor so high, social media plays a key role in lowering these costs through free product trials and instant consumer feedback. The luxury market itself has always had to be a bit ‘manufactured.’ Sometimes, luxury doesn’t have meaning unless its marketed as such (see cars, handbags, etc). As these luxury brands find themselves within the brave new world of social media, they also find themselves struggling to manufacture exclusive social media storefronts. High end websites. Member only VIP lists and exclusive auction style sites. The emergence of social media has greatly affected general retail; and as we see now, laid its sticky fingers upon the world of luxury brands. But true luxury will never go away; it will always find new ways to reinvent itself. The luxury brand has finally embraced social media and as such, has created a new luxury paradigm.
About Jet Luxury Resorts:
Jet Luxury Resorts is the premiere international 4 and 5 star Resort Management Company that provides truly affordable luxury. Jet Luxury Resorts is able to offer exclusive, luxurious yet affordable inventory to the rental community through honest, lucrative and dedicated service to hotel, estate and fractional owners. Jet Luxury Resorts is at 15 resorts in 10 destinations worldwide including St. Regis NY, Setai 5th Ave and Trump SoHo Hotel in New York, NY, Aspen, CO, The Signature MGM Grand and The Vdara Hotel in Las Vegas, NV, Malibu, CA, Italy, Costa Rica and Honolulu, HI.