Claudia Chiari: The Future of Luxury

Claudia Chiari

Claudia Chiari

MILAN, ItalyClaudia Chiari speaks about her book “Everlasting Luxury – The future of inaccessibility”, the result of studies and experiences in the Luxury sector where she tries to take a snapshot of the world-wide new luxury scenario and its players.

How and when did you get started as a writer?

I have always very much enjoyed writing and even more during the last three years. When I moved my professional base to Milan, I got more involved in this field working as an editor for both web and hard-copy publications. I have been part of the editorial office of the Le Fonti publishing house since last year, and I write for their main 3 monthly magazine. I work with university professors, drawing up papers, mainly on marketing and luxury and my first book “Everlasting Luxury” was published in July 2009. I hope to come out with a new edition soon.

What are the future major challenges of the luxury market?

I think the major challenges of the luxury market are linked to the radical changes that are taking place within the sector.

One of these is the segmentation of luxury, to be honest this is a challenge that is already underway. It is a natural consequence of the process of democratisation and consumerism of this century, meaning that traditional luxury is currently running alongside accessible luxury, and the result is an increasingly competitive battle between the sector’s players. Inaccessible luxury therefore has to be able to produce superior quality on both a tangible and intangible level, highlighting the separation of the intermediate and accessible segments, without putting itself at risk of shifting towards them. Vulnerability increases greatly when luxury is more accessible because the development of mass luxury depends on highly competitive advertising, communications and new products constantly coming onto the market to maintain diversification from competition. In the words of writers much more famous and articulate than I am, I would say that inaccessible luxury has to navigate a “blue ocean”, even though in the end it often creates a utopic world of its own which ends up clashing with “the red ocean” of the competition.

The game now plays on emotions and the ability to realise your passions.

The other challenge on the horizon is the importance of experiential factors. Traditional luxury has always focused on attributes like quality, rarity, high cost or a link with the past. Attributes which are still valued, but which no longer suffice. The game now plays on emotions and the ability to realise your passions, the ability to get customer loyalty to your own brand, not just for its symbolic value, but by establishing a relationship step by step, a long “journey” that needs time. The more emotional the purchase the higher the added value, and so the premium price which one is willing to pay. The other extreme embodies a rationale where price is dictated essentially by the quality/price ratio or by its function. A purchase could then be luxury if, for example, we were dealing with high value jewelry, but not inaccessible luxury, as there is no emotional involvement on the part of the customer.

What advice would you give to young entrepreneurs today?

See the human being in every customer; their needs, their hopes and their desires. The rules have changed, you do not impose a product on the market, you produce what the market demands, having observed and listened to it. Success is the fruit of satisfying the customer’s needs, through a product combined with good service, and every business unit inside the structure has to keep in mind the ultimate goal for which they all operate. Implement an impeccable CRM, and therefore the base to establish a lasting relationship with their customers.

Nowadays the consumer is prepared, they are informed, travelled, they compare prices and products, they do not always believe that high prices are necessarily synonymous with luxury. The new luxury consumer often comes from the middle classes and is always in search of a good deal, even in highly elite sectors such as luxury.

I will finish by saying that to create a brand means to keep a promise. When the brand is new to the market then the promise is also the starting point, and the fact that the customer will have experienced whatever is offered must not be forgotten. You therefore have to be able to occupy a very precise position in their minds, one which is as far as possible from competitors.

Claudia Chiari

Claudia Chiari

What do you define as new luxury goods and new needs?

The main attribute new luxury products has is being able to evoke the consumer’s emotions, helping them achieve their hopes for a better life, regardless of the sector. New luxury goods are able to generate a high volume of exchange, despite relatively high prices, a characteristic that is revealingly in contrast with old luxury goods. For example, they could be expensive products for their category however, the middle market can afford them or even the cheaper lines of brands traditionally positioned in the inaccessible band. New luxury products generate the so called phenomenon of trading up, for which you tend to save on other purchases to be able to concentrate on them, a tangible sign of the psychological satisfaction the consumer is looking for.

New needs are of an emotional type, both for the masses and for inaccessible luxury. So, looking after yourself, for example spending a day at a Spa, spending time on yourself, is probably the luxury of a society ruled by a hectic urban rhythm. In the same way the need to connect with others increases, as well as the desire for new experiences, for example travel, and to build your own style from everything which surrounds you. It all says who we are.

Courtesy and Photography by: Claudia Chiari | Website: www.claudiachiari.com
About the author

Founder and CIO of The Fashion Globe, directs the team from behind the scenes. Entrepreneur by nature and a programming expert by training, he has lived in 12 different cities, 5 countries and is passionate about bringing different people and ideas together.

Comments

  1. Really interesting article. I am an entrepreneur and I would like to thank Ms Claudia Chiari for her advices to today’s young entrepreneurs. Congratulations on your deep knowledge of the sector.

  2. A pleasure reading this article.
    Well-formed; filled with emotion and expression. Look forward to reading more…
    Best,Porscia® Yeganeh®

  3. Having read Claudia Chiari’s book , it provided an eye-opening account of the way Luxury retail operates and will operate in the future. We found her book and comments very constructive and very market relevant. Claudia Chiari’s vision and advice should be embraced by every person wishing to pursue an entrepreneurial career.

  4. Dear Claudia your opinions are very interesting and correct. I liked above all when you talked about sea 🙂
    I think that the real luxury is the one of the soul and I hope this concept belongs to all the people of the world.

  5. Irene Silvestri :

    It’s always a pleasure to read Claudia’s articles. Further, her website is in my opinion a real benchmark and a wide open eye on the world of luxury, fashion and, in a wider sense, on what is worth considering as “Beauty”.

  6. Claudia is a remarkable professional in her field. The interview highlights major luxury characteristics including price, quality, aesthetics, rarity, extraordinariness and emotionally-charged symbolical meaning.

    I would highly recommend reading her book ‘Everlasting Luxury the future of Inaccessibility’. The book is informative, educating and empowering to both the new and established players in the luxury industry. Well done!

  7. Everlasting Luxury is a pleasure to read and it is very stimulating. The book has opened my eyes on the real concept of luxury nowadays. I like very much the revealingly focus on the relationship about luxury and experiential factors: emotions, the ability to realize your passions, spending time on yourself, etc. Congratulations to Claudia for both the deep knowledge of the sector and the passion she feels when talking and writing about luxury in all its forms!

  8. Claudia Chiari matches professionalism, international eye on the world and flair for high quality products and services. The world of Luxury is today a reference to understand the growing pattern of emerging countries. Her book gives answer to many questions about luxury’s world mechanisms and leaves open questions for interesting dabates.

  9. Lucia Russo :

    When Claudia says : “Nowadays the consumer is prepared, they are informed, travelled, they compare prices and products, they don’t always believe that high prices are necessarily synonymous with luxury”, It’s truth. I am a new upcoming desiger at National Chamber of Italian Fashion and I live every day this impression. The right focus about the modern age of the fashion system!

  10. I totally agree on Claudia’s vision of luxury and on her interpretation of the modern consumer. I wish the entrepreneurs of today could read her article and take all the inspiring suggestions she is giving us. It is true the consumer is at the center of everything today, it is normal the business have changed according to this evolution but it is also important, as Claudia underlines, the concept of luxury stays preserved and keeps its exclusivity. Luxury is that very intimate and precious thing that belongs to each human being, it is only a matter of how and when to expose it…if and only if it is a real need..?
    I personally think Claudia gives us an important lesson through this article and in along the whole “Everlasting Luxury”, offering the reader to explore himself within the society he belongs to, below the limits and the conventions imposed. It is a real journey into the human emotions and needs, rising memorable questions and inspiring beautiful answers!

  11. First & most important point is that she is a Great Human Being & that’s the foundation of her Great Work.Its been a privilege & pleasure having her as a friend.

    Claudia Chiari matches professionalism, international eye on the world and flair for high quality products and services.

    I’ve read her book , its an eye-opener on the way Luxury retail operates and will operate in the future. The world of Luxury is today a reference to understand the growing pattern of emerging countries. Her book gives answer to many questions about luxury worlds mechanisms and leaves open questions for interesting debates.

    I totally agree on Claudia’s vision of luxury.I wish the entrepreneurs to read her article and take all the inspiring suggestions she is giving us.Luxury is very intimate and precious thing that belongs to each human being, it is only a matter of how and when to expose it…if and only if it is a real need..?

    I think Claudia gives us an important lesson through her article and “Everlasting Luxury”, It is a real journey into the human emotions and needs, rising memorable questions and inspiring beautiful answers!

    Her vision and advice should be embraced by every person wishing to pursue an entrepreneurial career.It is true the consumer is at the center of everything today, it is normal the business have changed according to this evolution but it is also important, as Claudia underlines, the concept of luxury stays preserved and keeps its exclusivity.

    I am privileged & honoured, Wishing you All the Best in all your endeavor.

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