The Road to Luxury

Chapter 2Evolution of the Global Luxury Market

Luxury is the opposite of vulgarity. Luxury is the opposite of status. It is the ability to make a living by being oneself. It is the freedom to refuse to live by habit. Luxury is liberty. Luxury is elegance. True elegance is refusal.

—Coco Chanel

The term luxury goods was popularized by Wall Street analysts who needed a term to describe companies such as LVMH, Richemont, and Gucci, which had become public companies. Prior to the popularizing of the term luxury goods, these companies were not really known as luxury goods companies but instead were known for their specific areas of expertise and the global reputation they had garnered.

Luxury is about exception and exclusivity, whether it comes to products, or services. A luxury product/service is unique, and not only because of its outstanding quality. It tells more than what it is. Beyond the usefulness or the wellness it brings, it tells a story, it reflects a style and a spirit that contribute to the dream. Luxury is about a product but also a brand, a universe.

—Eric Vallat, ex-Bonpoint

It is an association with a compelling and binding meaning in terms of emotional connectivity, personal harmony, spiritual connection or a connection to the world of the inherently beautiful, the greater the marginal value of the object to the seller.

—James Taylor, Harrison Group LLC

Luxury used to be “ordinary goods for exceptional people” but now can be defined as “exceptional goods for ordinary ...