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at how luxury has become almost commonplace and has lessons for not just luxury goods marketers but anyone looking to build aspirational qualities into their product or service.' The Global Trend towards the Democratization of Luxury A compilation of trends, issues and thoughts concerning this new market By Budd Margolis Imagine the contradiction of the term affordable luxury. There is a new egalitarianism or democratization of luxury developing over the past decade which is pressuring the top-tier marketers to innovate faster and think quicker in order to stay ahead of the crowd. The growing wealth of the world’s consumers and the communication of vast amounts of information are creating a new and very considerable trend towards mass consumable luxury goods. The question then for the leading brands is, if everyone can afford what was once rare and special how can it remain a luxury? How does one defend against brand erosion when trying to grow revenues by appealing to the mass market? Is the trend towards the democratization of luxury something that will destroy a brands integrity? Is easily accessible luxury good for the luxury companies, for the aspirational consumers or for society in general? The luxury market has experienced tremendous growth over just the past decade and is growing by 10 to 20 percent annually. Last year, luxury purchases accounted for about 20 percent of the $2.35 trillion American retail sales market. The trends for the world mimic what is expected from America where 47 million households desire luxury, projections for the market are expected to expand from $400 billion to $1 trillion by 2010. Globally the trend is also on the steep incline with continued support from Japan and Korean and the emerging and considerable markets of Indian and China. The world’s population continues to grow and so does the amount of wealth now available to the world's consumers. Scores of millionaires are flourishing in emerging, often once former communist countries and there is no end in sight. Their need to distinguish themselves and define their class is a deep seated, even genetic, human trait common to all people everywhere. Since ancient times the human race has sought luxury, no matter what the financial or human cost. It is one constant of human behaviour that is always present. It is also a good concept for people to think of waiting longer in order to save up and afford better although more expensive goods. This thinking leads to greater satisfaction with luxury purchases over a longer period. Better goods are also treated better and quality also lasts longer either from wear or respect unless one is a very serious fashion victim who changes with the winds of trends and taste. Wal-Mart is hard at work convincing us that everything we desire is easily affordable and available at their stores. Many of us are susceptible to the overwhelming amount of marketing that continuously encourages us to obtain more things when in fact we already have too many products that we are hardly use and rarely enjoy. Is it really worthwhile having an ice cream machine if it is used just three times a year? It may take up valuable shelf or counter space and the cost could have been used to purchase luxury brands instead and saved time and effort? Once our closets, garages, lofts and basements fill up with stuff, what then? There are, of course, serious economic, environmental, political or ethical considerations to any purchase choice we make and these considerations will have greater impact in the near future as consumers become more powerful and aware. It has been a rough economic period not just for the luxury goods industry with new fears such as global terrorism and SARS to contend with. However, there may be some light at the end of the tunnel although many still remain sceptical. For luxury goods there can be good periods in the midst of uncertain times as people seek to hold liquid assets whether for real or imagined situations. People tend to buy expensive objects to feel better, reward themselves, display status or to provide a sense of security. Negative pressures often drive consumers towards new purchase patterns or to strengthen those patterns which promote a sense of relief or purpose in their lives. They may also drive the desire to enjoy a moment as with consumed goods or the sense of touch or possession of a certain object. Many people buy objects they do not really need as a way to seek fulfilment, reward, status or provide a deep emotional satisfaction and often their choices provide temporary distraction. Luxury goods provide a new and aspirational reward which covers status and delivers a deep seated need to feel valuable and worthy in a world depicted by the media as perfect and orderly. Just about everyone in the magazines, billboards or on the telly are good looking, healthy and successful. One is included in the club by the simple act of acquiring the particular object of desire. The very concept of luxury has been democratized and its meaning has transformed into a new and less powerful word. It is overused and has decreased in value yet it still remains connected to all that is fine, rare and special. A luxury good must bring the owner pleasure and the longer one owns, it the more one's appreciation grows for it. How then can a hamburger or toilet paper be described as a luxury or luxurious item? Such products either retain their value or increase in value or one's appreciation for it. The only solution would be to establish a language police to clean up this mess and that seems about as reasonable as eliminating crime. 'Old luxury' was what was rare and hard to acquire because of its refined qualities. The good required the highest standards and talent to manufacture and included the best and often most expensive of materials and therefore the object was only available to the very rich. Today’s 'new luxury' is readily available to the middle classes who have increasingly greater amounts of disposable income, time and desire. Expensive brands such as Mercedes offer affordable versions of their brand while it is still true that a majority of Gucci handbags will be purchased by women who make less than?18K annual income. Luxury brands are capable of 20 percent to 200 percent margins because of the high perception of value that is attributed to them. Reputation and brand integrity are as much of the products make-up as the leather or history associated with the product. You may think it’s just a handbag but you have also acquired the marketing spiel that says this is your entree ticket to a tradition of several hundred years of craftsmanship and the relentless pursuit of perfection. You have joined the club! But if everyone has access to this new world where is the differentiation? How is it that the brand survives when it becomes a mass luxury? Is there really that much to distinguish a C class from an E class Mercedes or is this the start of an evolution towards the democratization of luxury where the 'Old luxury' terminology no longer counts? It is far too early in the process to know what the effects actually are but initial success does not indicate the impact such actions may have and sometime soon such companies may decide to retract from the mass luxury strategy and downsize in order to rekindle their exclusive brand distinction. Starbucks is a good case study as it has successfully grown a common product or consumable into a perceived luxury. Starbucks has brought new meaning to hot brown water and ground beans as they offer some 19,000 permutations of a cuppa Java at an enormous and profitable margin. Customers customize their product and buy into the marketing concept. Starbucks has a unique culture which of course has its own language. My brew in the occasional morning is simple: a Grande double shot latte sometimes with foam depending upon my mood. There are others who can concoct complex formulae which only a trained and skilled Barista can decipher. There is better coffee out there but few brand it as well and thus the growth of Starbucks to a $4b USD business with numerous worldwide outlets. To counter the green and labour activists Starbucks has joined the Fairtrade Foundation, which supports the local farmers around the world, and displays brochures at its many outlets which promote programmes to support local coffee farmers. With every bag of African beans Starbucks offers 75p to a charity that is building schools in Southern Ethiopia and last year Starbucks UK contributed?50,000 from this activity alone. The lesson is that one can develop an 'experience' or 'culture' as a method to distinguish an offering and by doing so creates an identity that the consumer can relate and belong to. It is indeed sad to think that instead of offering a better standard of life, our modern society has fragmented the core of family and community and we are being marketed a new order which fills some of the voids left in our lives. There are lifestyle luxuries which provide status and usefulness which would possibly be defined when you purchase a Patek watch, Vuitton bag or a Mercedes automobile. Certain trendy fashion labels also provide instant status and knowing what’s in or out is as vital as having the funds to acquire such goods. These items are meant for public display. We desire emotional gratification and therefore resort to the most temporary of delights with the ultimate indulgences. Little luxuries, disposable or consumable but always memorable such as chocolates and perfumes, flowers or a lunch out can provide a quick distraction or sense of well being. Indulgences are often very personal and often very private. Often there is a need to express oneself as a way to define one's place in the world and therefore the aspirational luxuries of antiques, art, fine jewellery, etc, have little practical value but allow purchasers to express themselves and their passions. These items are often very private and personal although easily accessible in a home or office. There are three converging trends which are driving a new thinking towards upscale marketing but first consider the progress we have made as a consumer society. The global consumer is being marketed from many more angles than ever before and each highly tuned sophisticated tactic is measured through complex metric and analytical tools while outsourced Indian call centres and digital TV pitch to us at every opportunity and at a reduced per inquiry/customer acquisition cost. We can buy into the hype that a product can change people's perception of who we are by accurately displaying our values and status or by providing solutions to problems we never knew we had. They might also provide some form of fulfilment for our deep seated desires or emotions. Some consumers of course will turn their backs and seek alternative lifestyles, possibly without all the communications delivery mechanisms we are surrounded by but emerging global markets will easily fill any imaginable voids or consumer backlash. The future, barring some catastrophe, seems blue sky indeed. We receive not hundreds but thousands of marketing messages