Shopping Tourism: Luxury products and others
Factors such as originality, innovation, creativity, raise the need of determining indicators that allow to measure the success of the application of strategies to promote the tourist destinations and any acquisition of luxury or high range products and handmade or creative objects that have a direct link to the Cultural Identity of the destination and are characterized by having a unique and different character from which an emotional rather than rational need is derived.
The relation between Shopping Tourism and the concept of luxury or high range and premium is undeniable. Therefore, over these years and thanks to the experts that participate in the World Shopping Tourism Network, we can indicate the differences between a luxury and premium product
- In luxury brands excellence, handicraft and the care of the finished product prevail. The design reflects timelessness and creative passion which should create a lasting brand identity.
- A luxury brand is different and possesses a great originality, a particular history and the capacity of providing status to its consumers who form part of an elite. Its goal is not to massif but to orient itself on a selective sale.
- A luxury brand focuses on evolving to surpass itself, being a reason for inspiration for its followers while maintaining its original qualities.
- The branding of a luxury brand stands out by a story or storytelling, a story that sells a dream (an idea of the brand) beyond the products. In luxury emotions definitely stand out, an emotional, not rational, need is generated.
- Luxury brands seek clients and the demand often stays dissatisfied.
- In terms of production, the luxury brand doesn’t skimp on using the best, though it has to use very expensive and scarce materials for its products.
- A premium brand is technically one of the highest price in the traditional market. Nevertheless, said aspects don’t give these products exclusivity as high as that of a luxury product. They’re more expensive, that’s true, but they keep being within the reach of many consumers to sell them in bulk.
Behind premium brands there’s a marketing strategy, products that satisfy needs are created and due to these needs changing, premium brands have a demand for a certain time and need to be constantly innovating.
- Considering a premium brand, the definitions are very much determined by the geographical region in which we are, in Asia, for example, a premium brand is distinguished by the ostentation of the brand while in Europe or the USA it’s a product of greater value compared to the mass product, standing out for its quality, design, comfort, customer service, care or innovation. What’s clear in the definitions is that the premium brand is destined to sell more than luxury brands, for which it needs consumers.
- Premium brands need to listen to the customer with the aim of satisfying needs, creating niches and redefining categories. These brands need to have a continuous dialogue with the consumer and create an experience that leads them to have a competitive value.
- A premium brand usually positions itself within a determined sector and always observes what the competition is doing, using tools such as benchmarking.
- While a premium brand studies the tastes and needs of its clients to adapt to them, luxury brands don’t follow trends but make their clients adapt to their changes.
- In terms of production, a premium brand, although a premium brand usually uses quality finishes, does not opt for the most exclusive or extraordinary.