The
Ten Levers
of Luxury
Luxury: A Multifaceted Concept
Luxury is a complex, layered concept; it transcends necessity and functionality, encompassing products, services, and experiences that are deemed exceptional. It is not defined by a single attribute, but by a seamless blend of authenticity, creativity, exclusivity, and superiority. It exists in the convergence of aesthetics, materials, craftsmanship, communication, and distribution—luxury is about uniqueness and storytelling at its finest.
The modern interpretation of luxury finds its origins in the mid-17th century, derived from the Old French term luxurie and the Latin luxus, which signifies indulgence, opulence, and extravagant living. This essence of luxury continues to shape our understanding of what it means to possess true distinction.
It has long been regarded as a subjective concept, with various interpretations seeking to define its essence. While a singular, precise definition remains elusive, its meaning is shaped by context and cultural nuances. What is universally agreed upon, however, is that luxury represents the highest standards of quality, creativity, and craftsmanship, all of which contribute to a truly exceptional and immersive consumption experience.
The TEN LEVERS of Luxury
At A New Level Luxury, we have developed the TEN LEVERS of Luxury Framework, supported by our innovative AI-powered strategy tool. This model is based on ten key attributes that define the distinct characteristics of luxury goods and services, translating into strategic "levers" that shape and strengthen competitive advantage. It serves as the foundation for an objective assessment and scoring system – a comprehensive 'health check' designed to identify strengths, weaknesses, and areas for improvement.
Our framework offers a thorough analysis of key competitive variables paired with specialised metrics for measurement and evaluation. Each lever represents a potential source of competitive advantage or differentiation. Businesses must strategically assess each component, while considering the interactions with other levers, to achieve their specific strategic objectives. The aggregate score across all ten levers reflects the effectiveness and strength of their competitive advantage.
The TEN LEVERS
1 > AUTHENTICITY
Authenticity is the cornerstone of perceived value in both luxury goods and services, embodying the very essence of luxury. The concept encompasses key elements such as heritage, character, originality, credibility, and integrity. Despite its significance, authenticity is often misunderstood and oversimplified, frequently reduced to notions of genuineness or venerableness alone.
2 > QUALITY
An expectation of uncompromising excellence is at the heart of luxury. The most successful luxury goods undergo rigorous processes throughout the entire supply chain to ensure the highest standards are maintained, safeguarding against premature deterioration. While the concept of luxury is nuanced, quality is unmistakeable – it extends beyond aesthetics, encompassing the promise of superior raw materials and other inputs..
3 > CRAFTSMANSHIP
Craftsmanship embodies the outstanding exceptional skill and expertise, applied in creating the finest products. Central to luxury goods production – whether bespoke furniture or haute couture fashion – superior craftsmanship enhances both the value and experience of a product. It elevates the perception of the item, fostering appreciation that extends beyond its functionality.
4 > EXCLUSIVITY
Exclusivity goes beyond scarce materials—it’s about creating products and experiences that feel unique and subjectively rare. In an increasingly saturated market, it’s crucial to innovate and cater to a new generation of consumers who crave individuality, value uniqueness, and expect fresh ideas. By offering personalized and distinctive products, brands can foster a sense of rarity and appeal to those seeking something special.
5 > PRESTIGE
Luxury has always been about exceptional value, with importance placed on brands that go beyond mere aesthetics and promises. The prestige ascribed to a brand is directly linked to this deeper connection. Ascending the prestige hierarchy requires brands to deliver both tangible and intangible value, evoking admiration and elevating the consumer’s experience beyond the present into a timeless continuum of past, present, and future..
6 > BRANDING
Luxury branding goes beyond visual elements like logos, symbols, and colour schemes; it embodies the full spectrum of brand elements to communicate a distinct voice and personality. It promises superiority while positioning the brand as unique and exclusive. Successful branding tells a compelling luxury story, forging an emotional connection with consumers and creating an aura of desirability and timeless allure.
7 > PERSONALISATION
Customer centricity has become paramount for luxury companies. Consumers engage with brands on a deeper, more meaningful level, seeking what they represent in terms of personal desires, beliefs, values, and subconscious perceptions of the world. The more a brand anticipates and responds to individual needs, empowering self-expression and identity, the greater the value it creates for its customers.
8 > PRICE-PREMIUM
The ability to command a high price premium relies on consumers perceiving sufficient value in the product, often achieved by enhancing other components such as quality, craftsmanship, or exclusivity. This position is highly advantageous for a business, as studies show consumers often use price as a heuristic for quality, assuming that higher-priced products are of superior quality.
9 > TECHNOLOGY
As luxury companies strive to balance tradition with innovation, disruptive technologies such as blockchain and NFTs are reshaping the luxury landscape. Companies will need to adapt to these changes to stay relevant. Online sales are expected to surpass all other luxury sales channels, with the share of online sales for personal luxury goods projected to reach 33% by 2030.
10 > SUSTAINABILITY
While not traditionally a luxury dimension, sustainability and environmental responsibility are increasingly gaining prominence as the new standard of luxury. A paradigm shift is occurring, with affluent consumers actively pursuing positive changes in their lives. Luxury companies now face important questions about the impact their businesses have on the world.
Get in touch to learn how the TEN LEVERS of Luxury Framework can transform your business.
An Evolving Concept
Today, the concept of luxury is evolving, driven by digitalisation and a new wave of conscious social change, embracing elevated, sustainability-focused living. Modern luxury is moving away from traditional ideas of excess, extravagance, and antiquity, and instead, is striving for a timeless and meaningful identity supported by the power of digital technology.
Wealthy and affluent consumers are increasingly seeking positive, progressive changes in their lives, and are expecting luxury brands to do better. In response, to remain relevant, brands are promoting meaningful, mindful, and less disposable luxuries, a trend that is particularly resonating with millennials and Gen Z.
The Business of Luxury
While the term “luxury” continues to lack a universal definition, the luxury industry is increasingly being redefined by a new set of principles that are more complex than ever before. Scientific and expert studies broadly agree on the key components that distinguish luxury goods and services, with consensus on the elements present in the most prestigious luxury companies. However, a growing number of smaller and newer companies are undeniably succeeding in crafting a commendable luxury status by strategically balancing these components. Luxury, therefore, is more an art than a science..
On the global platform, the luxury market continues to thrive, valued at approximately €1.5 trillion in 2023, with an annual growth rate of 8-10%. In the UK, the luxury sector contributes about £81 billion to the economy and supports over 450,000 jobs. The luxury market spans various industries, from fashion to automobiles and hospitality, and industry players must be enthusiastic about adapting to evolving to consumer and market expectations while preserving authenticity, excellence, and creativity.
Contact us to learn more about how the TEN LEVERS Framework can help to uniquely position your business for lasting success.