It is important to differentiate among luxury, fashion and premium brands, so let’s quote Kapferer, “A) The luxury strategy aims at creating the highest brand value and pricing power by leveraging all intangible elements of singularity- i.e. time, heritage, country of origin, craftsmanship, man-made, small series, prestigious clients, etc.
B) The fashion strategy has a completely different business model since heritage and time, are not important; fashion sells by being fashionable, which is to say, a very perishable value.
C) The premium strategy can be summarized as “pay more, get more.” Here the goal is to prove -through comparisons and benchmarking- that this is the best value within its category. Quality/price ratio is the motto. This strategy is, by essence, comparative.’’