Interview with António Paraíso IN CONVERSATION WITH LUXURY CONSULTANT António Paraíso
"Luxury brands succeed when they combine a subtle blend of perfect tangibility and seductive intangibility," says António Paraíso, luxury consultant to Porsche, Armani and Deloitte. Here, he shares his expert knowledge and advice on luxury and reveals which brands are breaking ground to attract and retain a new category of affluent consumer
There are many definitions of luxury. What does it mean to you? I believe one should try to understand luxury both from the perspective of the consumer as well as that of the brand. If I am a brand manager, I believe
that luxury is the subtle combination of perfect tangibility and seductive intangibility. And I should work to make sure that my brand and respective offering mirrors that blend. If I am a well-educated, wealthy consumer, then luxury to me is a state of mind and a way of life. Brands should understand it and make sure to deliver at that level so that I feel connected to the brand and become a loyal customer.
How has the perception and consumption of luxury shifted in recent years? I see three changes. When I studied Luxury Brand Management 10 years ago, most luxury brands were sceptical about the internet and digital marketing; consumers were much more interested in owning luxury objects rather than living memorable experiences; and luxury was still very much about extravagance and wastefulness. In this past decade, mainly because
of millennials and later gen Z, all high- end brands are using digital marketing. Luxury services and sophisticated experiences in hotels, travel, gastronomy, healthcare, wellness and entertainment have increased sales tremendously. Also, luxury brands are increasingly concerned with the planet and society, acting to promote and place sustainability as well as social responsibility at the core of their strategies.
What does this mean for luxury brands? What should they be doing to appeal to today’s consumer audience? According to “Luxury Goods Worldwide Market Study 2018” by Bain & Co., generations Y (millennials) and Z represented 47% of the global consumers of personal luxury goods last year.
10 December 2019
This study predicts that in 2025 these generations will represent 55% of luxury consumers and nearly all luxury purchases will be influenced by online interactions. Hence, high-end brands will have to
invest more in using digital to ‘seduce’ their target audiences, in communicating purpose and values, in offering enticing, unforgettable experiences and by taking adequate action to protect the planet and people in need.
Traditionally, luxury has been about wastefulness, extravagance and ostentation. Nowadays, brands challenging the status quo are those actively committed to reducing their impact on the planet
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Is there such a thing as ‘true luxury’? Luxury is a sociological phenomenon of consumption, which consists in building brands that represent elegant lifestyles and fully connect with the ego of consumers. Consumers will then buy products and services because they wish to live those lifestyles. According to Danielle Allerès, a French
luxury expert, brands can be organised in a pyramid with three layers: Accessible Luxury, Intermediate Luxury and Inaccessible Luxury. You can buy products and services
from brands in the first two layers as long as you have enough money. But, you also need power and influence, and not money only, in order to access “inaccessible luxury brands”.
For instance, Ferrari and Hermès
do not sell certain iconic products to everybody. Certain chefs and event organisers do not accept to serve customers who are not powerful and influencial. Money is not enough. And that’s when customers feel really exclusive, special and unique. Luxury is not for everyone and eventually true luxury lies up there at the tip of the pyramid.
What advice would you give to luxury brands which are navigating the benefits of new technologies, through personal, human-to-human service? The use of new technologies is growing every day. But luxury is the business of making people feel special and you can only achieve it with personal interactions and exceptional human-to-human service. According to the study I have mentioned above, the global luxury market recorded worldwide sales of nearly €1.2 trillion in 2018, where global online luxury sales totalled €27 billion. So, only 2.25% of worldwide luxury sales were made online.
Which luxury brands do you believe are raising the ceiling & challenging the status quo? Traditionally, luxury has been about wastefulness, extravagance and ostentation. Nowadays, brands challenging the status quo are those actively committed to reducing their impact on the planet and setting an example for other brands. Inspiring examples in fashion are Stella
McCartney, Gabriela Hearst and the Kering Group. L’Oréal Group are doing an incredible job to make the beauty industry more sustainable. And in southeast Asia, luxury resort
groups Song Saa, Soneva, Alila and Bawah Reserve are really raising the ceiling in sustainable action. These brands bring a fresh debate, a new approach and true inspiration to the luxury industry.
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