Research released recently by iseecars.com seems to indicate a fleeting happiness with luxury cars. New buyers of BMW, Jaguar, Land Rover, Mercedes-Benz, and Porsche sell them more frequently in the first year than owners of other models. Car owners who drive their vehicles into the ground scoff knowingly: Money can’t buy you a happy ride.
But looking at the statistics more closely reveals a more nuanced reality. The vehicles traded in are often baseline models of those prestige brands, favored more by aspirational buyers than the filthy rich. “Despite the popularity of these vehicles, they generally have below-average reliability ratings from Consumer Reports, which could contribute to why owners get rid of them so quickly,” said iSeeCars CEO Phong Ly, in a statement accompanying the report. Owners of ultra-high-end vehicles, in general, hold on to them.
Welcome to the potentially lucrative but often confusing dynamics of the luxury market. Harvard Business School researchers have studied the trends to answer a number of questions. Does a prestige brand like Longchamp dilute its aura by selling an affordable handbag? Does a CEO need to understand aesthetics? Is a high-end car maker better off emphasizing performance over luxury? Are luxury and sustainability mutually exclusive? And just what is the “new aspirational lifestyle?” Here is what they found.
A Good Place to Start
The ‘Luxury Prime’: How Luxury Changes People
What effect does luxury have on human cognition and decision making? Researchers are finding a link between luxury and self interest, an insight that may help curb corporate excesses.
Having No Life is the New Aspirational Lifestyle
It used to be that we equated power and prestige with a leisurely, luxurious lifestyle. Today, lack of leisure time may just be the real status symbol.
How Restaurants in Lima and Copenhagen Became Best in the World
Deconstructing ground grasshoppers, upscale Peruvian cuisine, and other surprising elements that create the perfect culinary experience.
A Luxury Industry Veteran Teaches the Importance of Aesthetics to Budding Business Leaders
Pauline Brown, a former top executive with French luxury goods conglomerate LVMH Moët Hennessy Louis Vuitton, teaches a course called The Business of Aesthetics.
Stella McCartney Combines High Fashion with Environmental Values
Fashion designer Stella McCartney is the subject of a case study showing that luxury and sustainability need not be mutually exclusive.
The Ferrari Way
Secretive sports car maker Ferrari opens up about how it bucked industry trends to achieve success.
How Would You Price One of the World's Great Watches?
For companies with lots of innovation stuffed in their products, getting the price right is a crucial decision.
Research Papers
Reinventing the American Wine Industry: Marketing Strategies and the Construction of Wine Culture
Since the 1960s, the United States has seen spectacular growth in wine consumption. This paper explores how businesses reinveted the image of wine.
An Exploration of Luxury Hotels in Tanzania
Why, despite being so richly endowed in touristic resources, does Tanzania receive relatively few tourists and little revenue from tourism?
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