Luxury brands are emotional and cultural purchases that defy many traditional laws of marketing, particularly around the use of promotion and distribution. The market is growing and many brands are setting new standards in digital advertising strategies that engage the consumer during the lifetime of the brand relationship. Today, luxury is as much about unique brand 'experiences' as it is about the product itself. Marketers can tap into a brand's heritage to enhance its luxury credentials.


The luxury sector ranges from ‘premium FMCG’ brands, which rely on wide distribution and popular, yet aspirational appeal, through to brands that live or die by extreme exclusivity.

Key insights

1. A new challenge for luxury brands is avoidance of ostentation

Younger high net-worth individuals are putting less value on typical markers of wealth, according to research by US-based brand consultants. Non-branded luxury items are becoming more popular as they appeal to this demographic’s desire for high-level curation and self-expression. Cultural currency is important, so those ‘in the know’ will recognize a luxury fashion handbag with the label hidden. Instagram and word-of-mouth marketing is important for building this cultural currency among younger, wealthy consumers.