The democratization of luxury has been an important marketing phenomenon for decades, hence the term “populuxe,” to describe popular luxuries of 1950s America, such as the Cadillac. But the idea of “marketing luxury to the masses” has received increasing attention in recent years. If luxury in the 1980s was about showing off, and luxury in the 1990s was more of a niche concept, many observers believe that today there exist two divergent ideas of luxury -- the Old Luxury, which is rooted in tradition and craftsmanship, and the New Luxury, which is more style-driven and accessible.

Old Luxury tends to be associated with European elegance, inherited wealth and status, New Luxury with contemporary design and American marketing techniques. Many of the world’s most prestigious luxury brands have a long history. Hermès, for example, was founded in 1837, and Louis Vuitton in 1854. An Hermès handbag is not only a luxury item, it is also a status symbol. The famous H logo -- like the LV monogram of Louis Vuitton, the double C’s of Chanel, and the double F’s of Fendi -- functions like an artist’s signature, attesting to the authenticity of the product, and thus its value.

Counterfeits of famous luxury brands are an unwelcome testimony to their prestige among the general public. Moreover, awareness of a luxury fashion brand among affluent consumers is no guarantee that they will accord it high social status. The perceived value of a brand can drop if it appears to go “down-market,” and as designer labels become more widely available, they can lose the cachet of exclusivity. Logos may be losing their luster as the display of status becomes more complex.

 

previous page                                                                       next page