A pair of Gucci loafers, a Hermes Kelly bag, or a Tiffany necklace? Not interested, thank you. In the Hyper-Luxury market, these brands and products are not luxury enough!
With that, I welcome you to the era of Hyper-Luxury.
Table of Contents:
- What is Hyper-Luxury?
- Target Market of Luxury Market
- Target Market of Hyper-Luxury Market
- Brands that Hyper-Luxury Shoppers Know and Love
- Jada Dubai (Shoes)
- F.P. Journe (Watches)
- Le Monde Dur Mesure by Perfumery Morreale Paris (Fragrances)
- Graff (Diamonds)
The luxury industry has changed drastically over the years. Today luxury is everywhere. Everybody wants their products to be luxurious. When one thinks of luxury, one often thinks of something that is attractive and fashionable. In 2021, we see luxury columns in magazines and journals, even more, so there are now TV shows based on the business of luxury as well as luxury products and services.
With that being said though, there is a miscommunication today about what really makes a luxury product, a luxury brand, or a luxury company.
Consumers are becoming more demanding in their search for premium products and services. Some buyers are looking for hyper-exclusive products and services while others favor quality in price. Hyper luxury consumers are becoming frustrated when being targeted the same way as common luxury consumers are. Hyper-Luxury shoppers desire products that are expensive enough to match their financial and social statuses.
On the other hand, the more common luxury consumer is also finding it difficult to keep up with their prestigious lifestyle. In this new era of Hyper-Luxury, Millionaires and billionaires are leading the way.
What is Hyper-Luxury?
You are probably wondering how we define this new luxury segment. Hyper luxury represents products that are rare, exclusive, limited, and of extremely high quality. They are often handmade and unapologetically expensive.
The excessively rich luxury consumer has a strong craving for very expensive goods as well as exclusive shopping in which only they can afford. The downfall of this desire is the obligation it requires from designers and retailers who must then increase their prices to meet the needs of this new market.
One example of this is the brand Louis Vuitton who offers a diverse price range for their bags. Consumers can buy a NEVERFULL MM bag handcrafted from good quality leather for $1,690 USD, or they could purchase a CROCODILE LADY BAG PM which is priced at $54,500 USD.
In this new Hyper-Luxury economy, ‘normal luxury consumers’ are finding it hard to tread water with the increasingly inflated prices of luxury goods. According to Legal Jobs, 5% of bankruptcy cases are attributed to reckless spending, and 20% of US bankruptcies were filed by well-educated people, whether these statistics correlate with Hyper-Luxury individuals or not, I cannot say hopefully this gives you some perspective on the effect of this era. When it comes to Hyper-Luxury consumers, the issue arises mainly because they have higher expectations of their standards of living and continuously keep up with it, not realizing that they are spending beyond their means.
Target Market of Luxury Market
- Compared to the traditional luxury consumers of the 19th century (Westerners, elite, upper-class), Millennials and the Gen Z population are now the drivers of the luxury fashion industry as it is an industry defined by youth culture. This can be attributed to their higher focus on experiences, willingness to pay extra for premium products, and openness to experimentation with new things.
- In other words, these are high-earning millennials who aren’t rich yet. Or, in other words, the HENRY’s (High Earners, Not Rich Yet).
- Asian shoppers are also driving the global luxury market. By 2025, Chinese luxury consumers are expected to account for 50% of global luxury spending.
- Luxury spending in the U.S, Italy, Japan, and France is also growing
- The psycho-graphic and demographic indicators of end-consumers have changed drastically over the past few years. This is due to strong smartphone and technology adoption, the rising amount of social media users, and the growth in internet penetration.
- These innovations are allowing consumers to become more educated and informed on their purchases before-hand.
Target Market of Hyper-Luxury Market
Based on my research and information differentiating the luxury and hyper-luxury markets, it is fair to say that the target consumers of the hyper-luxury market are the high earners who are already wealthy. Whether that be millennials who have successfully come into it due to their own endeavors, or a bit of an older generation (25-44) who have worked their way to the top and have spare money to fund their exuberant lifestyles.
Brands that Hyper-Luxury Shoppers Know and Love
Jada Dubai (Shoes)
This top-notch brand creates extraordinary shoes for extraordinary women. Each pair of shoes is handcrafted by a single craftsman from start to finish. They are made in the style of Italian shoemaking heritage while adhering to the trends of the new generations. Jada Dubai uses the most durable and rarest leather to craft the shoes after it is carefully selected for their softness and luxury. The brand prioritizes elegance, refinement, and grace when designing each shoe with an unparalleled aesthetic. Once the shoe is sewn, it is frosted with the finest stones and metals from platinum to diamonds. Jada Dubai’s dream collection consists of four designs from ruby red to gold.
Jada Dubai collaborated with Passion Jewelers on the world’s most expensive shoe. The shoe is called The Passion Diamond shoe and retails for $23 Million USD. The heel is encrusted with 36 diamonds and at the toe, there is a 15 karat D-flawless diamond. The shoe is composed of gold, leather, and silk, so it is certainly an exclusive shoe and a hyper-luxurious brand.
F.P. Journe (Watches)
When looking for handcrafted individual timepieces steeped in history, Hyper-Luxury shoppers look no further than F. P. Journe. The brand makes less than 900 pieces a year as compared to Rolex who makes 2,000 watches a day. The brand was founded in 1999, making it a rather young watch brand but don’t let that fool you, the watches are made to last for centuries. In 2017, a one-off watch called The F.P. Journe Monopusher Split-Seconds Chronograph crashed through the million-dollar barrier and was sold for 1.15 million Swiss Franc price (approximately 1,248,499.80 United States Dollars). In the process, this watch became one of the most expensive wristwatches from an independent watchmaker ever sold at auction.
Le Monde Dur Mesure by Perfumery Morreale Paris (Fragrances)
A $200 price tag on a bottle of upmarket fragrance isn’t going to cut it for hyper-luxury consumers. Instead, A-list shoppers prefer exclusive scents that set a new landscape. Le Monde Dur Mesure crafts their fragrances specifically for each client with the intention of helping them achieve dreams that they have not fulfilled and ones they have not even realized. The brand focuses on creating fragrances that resonate with its consumers and evoke emotions that bring the wearer back to their childhood. The Bespoke perfume is the most exclusive line in the world. It retails for anywhere between 1.5 million and 20 million USD per bottle. Each bottle is engraved with a serial number and is encased in gold armor all the while being inlaid with precious stones that best match the scent and the buyer’s preferences.
A highly exclusive jeweler who sources and processes their own diamonds and turns them into unique creations. The brand has an extensive waiting list because, unlike popular brand Tiffany & Co., Graff only produces 350 jewels per month. The brand works with the world’s most sought-after diamond and even decides to recut the diamonds themselves after getting them into their possession. Lawrence Graff is one the most legendary jewel makers of all time, known for his eye for diamonds. One of Lawrence Graff’s most daring diamond cuts is called the Graff Venus. The stone is a 118.78 karat D-color flawless diamond which he boldly cut into a heart shape.
One thing that has stayed consistent over the changing times is the constant emersion of new fashion trends and everchanging styles. Both luxury and fashion play a key role in our social lives because luxury works to recreate a social stratiﬁcation, and fashion works to recreate the way of the seasons. As luxury fashion brands continue to enter the market, there will continue to be a demand for hyper-exclusive products and goods in fashion trends. These preferences have risen so dramatically that the new phenomenon – hyper luxury has made itself known, with that being said, it is the desire for products that are rare, ultra-exclusive, and unapologetically expensive that is taking over the industry and it’s up to these brands to accommodate these needs. Hyper luxury is based on specialty craftsmanship, exceptional materials, and personalization. Hyper-Luxury is the opposite of everyday fashion because these high-class upmarket customers are willing to wait to get what they want when it comes to fashion trends.