What is your definition of luxury?

By David Russell, Director, International Marketing & Public Relations

When I joined the luxury brand that is the Sotheby’s International Realty® network one of the first things I did was to try to define what I thought luxury to be. I had never spent any time on this topic before but I felt it now appropriate as it seemed to me that “luxury” had become a throwaway buzz word that usually meant the opposite.… I needed to find solace.

I thought I’d found it in the first definition I came up with….. “luxury is a state of mind. It is about how you carry yourself and fulfill yours as well as others’ desires.”
My idea focused on the issue of luxury from the perspective of self and others. One does not consume luxury for just oneself but it is very much a socially-oriented consumption. For example, why did I wear my best suit for my first interview?  Why did I make sure that I did not use a cheap perfume when going on my first date with my wife? The aspect of self-indulgence is intertwined with socially-directed motives when it comes to luxury.

However….. the question remained in my head, I didn’t think I’d cracked it yet……. so…..how do we define luxury?

I went back to the beginning. The concept of luxury has been present in various forms since the beginning of civilization. Its role was just as important in ancient western and eastern empires as it is in modern societies. With the clear differences between social classes in earlier civilizations, the consumption of luxury was limited to the elite classes. It also meant the definition of luxury was fairly clear back then…. “Whatever the poor cannot have and the elite can is luxury”….simple!

But…..with increasing “democratization,” several new product categories were created within the luxury market which were aptly called accessible luxury OR prestige luxury. This kind of luxury specifically targeted the middle class (or what is sometimes termed as aspiring class). As luxury penetrated into the masses, defining luxury has become ever so difficult.

In contemporary marketing, Bernard Dubois, professor of marketing at HEC School of Management in Jouy-en-Josas, France,  defines luxury as ”a specific (i.e. higher-priced) tier of offer in almost any product or service category”  (side note ….you would think a marketeer, a professor no less, would come up with a catchier definition!!) However, despite the substantial body of knowledge accumulated during the past decades, neither academics nor the Oxford English Dictionary (“luxury is a state of great comfort or elegance, especially when involving great expense”) have helped me arrive on a common definition.

While the word “luxury” is used in daily lives to refer to a certain lifestyle, I think that the underlying definition is consumer and situation specific. For example, if you earn less than £1 a day, an ice-cream would be a really big luxury item for you. On the other hand, if you are driving to the wedding party of Will and Kate then a £100,000 car may not be a luxury but a necessity. The word luxury actually originates from the Latin term “luxus” signifying, “soft or extravagant living, indulgence, sumptuousness or opulence.” However, luxury is a quite slippery term to define because of the strong involvement of human element and value recognition from others.

Many other attempts have been made to define luxury using the price-quality dimension stating higher-priced products in any category is luxury. Similarly, people have used the unique aspects of luxury too. However, with increasing quality orientation from lower-end brands and the mass market nature of luxury, it is hard to use either of the above dimensions to define luxury.

Prof. Jean-Noel Kapferer, professor of marketing at HEC School of Management, the European authority on brand management and author of eleven books on communication and brands, takes an experiential approach and defines luxury as “items which provide extra pleasure by flattering all senses at once.”  Other academics focus on the exclusivity dimension and ultimately argue that “luxury evokes a sense of belonging to a certain elite group.” However, holding an LVMH handbag on your Friday night out in the hippest bars of London, or any big city across the world, may not make you feel that way. Nowadays many luxury consumers say LVMH, Gucci, Prada and Tiffany are losing their luster …does that then mean that luxury is about NOT being in the group???

Perhaps the answer I was looking for was underneath my nose all long. As part of my role within the Sotheby’s International Realty network I am fortunate to know, work with and often visit many of our Affiliates based outside of the USA. Although each office is branded the same, it is also beautifully different. Each country has its own style and personality yet the common thread is always a “luxury” experience.  Luxury may be extremely subjective and multidimensional in nature, but across our network, in all locations I have seen, we offer an authentic, discerning and appropriate service that is always discreet, savvy and refined. So that’s it… that’s my new definition, “Luxury is always discreet, savvy and refined”….now where did I hear that before?

What is your definition of luxury?  Share your thoughts below.