But it’s a new fangled kind of luxury that is succeeding.  Definitions of luxury past and present are in stark contrast. Previously, it was in vogue to believe that once the masses desire and acquire luxury products then their exclusivity and appeal disappear. However, according to Trendwatching.com, massclusivity is the characterization of luxury today; it fills “the modern man’s immense need for respect and privilege.”  The new mantra touts the idea that luxury is in the eye of the beholder.

Brands who know that luxury is becoming a necessity are taking the opportunity to be creative with different price points and creating separate product lines. Gen-yers are willing to pay slightly higher prices to own a slice of luxury especially if it has a time stamp on it.

Examples of affordable luxury in retail:

- H&M’s partnership collection with Chanel designer Karl Lagerfeld and Stella McCartney had customers waiting outside of stores before they even opened. Sonia Rykiel is up next (coming February 20^th).

- Target’s collaborations with Alexander McQueen, Proenza Schouler and recently Rodarte had clothes flying off the racks. Within days of Rodarte’s premiere, the only shred of evidence that the line ever debuted at my local target was the logos and photos atop the empty racks.

- JC Penny’s store-in-store concept partnership with Sephora are able to inject a dose of luxury into places consumers are shopping anyway.

I definitely see growth for the trend outside of retail, but not every brand should or can implement an affordable luxury strategy. Successful brands do so without harming the equity of their parent brand which is after all the most important in the long run.

Today’s gen-y can be seen buying drugstore makeup but demanding Starbucks only coffee and the latest iPhone 3Gs and it is perfectly acceptable.  So, what does luxury mean to you? What are some of your favorite brands embracing the affordable luxury trend?

Photo Credit: casol

Brands on target

“What should we do?”

“I don’t know, let’s just go to Target.”

I cannot tell you how many times that exact conversation has transpired among my friends. The brand Target has so permeated the psyche of our generation that the brand has actually become a destination.

After partaking in this activity for the hundredth time or so this weekend, I started to think. It’s pretty powerful that we are going to Target without even a purchase in mind. Granted, we usually come out with a few “necessities,” there is rarely a product that drives our trip. What is it about Target that make us want to go there instead of say the movies or the mall?

The environment. Target does not solely think about the products they will offer and where they will display them, but they have truly created an in-store experience. Visually the stores are bright (compared to a Walmart), there is upbeat music playing and there is a Starbucks or food service kiosk in the store. More brands need to think beyond their narrow product offering and more about creating in-store experiences that make people want to come back.

Affordable quality. Another reason we choose Target is because the products are not very expensive but still meant to last. As the Target commercials so adeptly point out, we, like many people these days, are frugalistas.

On-demand content. Target has also provided us with the ability to access their content whenever we want, keeping them top of mind. Last holiday season, they built an iphone app that allowed consumers to shake it and find relevant gift ideas for different people depending on their demographic.

Then again, maybe this is all just the result of growing up in the ‘burbs. What do you say – Where the Wild Things Are or Target?

Photo Credit: robholland / CC BY 2.0