The luxury market is on its way from a 'traditional conspicuous consumption model' to a new concept of luxury understanding. The way affluent clientele interprets luxury is changing throughout the world. In an international context, it is of outmost importance to understand the motivation of luxury consumption, the understanding and the interpretation of luxury and how this perception of value perception finally affects the purchasing behavior of wealthy consumers around the globe. Foreign business may be missing important information about how to market luxury goods and services successfully in Japan. Specifically, foreign firms need to understand better what product strategies work in Japan. The evidence suggests that companies, which understand Japan's social-cultural underpinnings, are more successful at selling their products. These insights can be used to more effectively enhance communication between luxury brands and potential consumers. In a further step, such learnings could be adopted to other markets.
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About the Author
Alessio Giacomel works for a Swiss luxury sports watch brand in Tokyo. He holds a PhD in Business Administration, specializing in the marketing of luxury goods in Asia. He started his career in Japan with a scholarship from the Swiss-Japanese Chamber of Commerce.
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