Chris Anderson, in a now-famous Wired magazine essay called "The Long Tail," described this aggregation of a series of micro markets into a different kind of mass market (he charted the phenomenon in a way that puts mass market on one end and micro market down at the other, giving the look of a long tail, hence the name). The phenomenon is far from limited to luxury goods. In fact, his primary case in point is Amazon and its sales of niche books and CDs. But his theory does dovetail with key principles of luxury marketing; especially exclusivity and individuality, or simply the idea that future marketing will be more "micro" than "mass."
In the hospitality industry, for example, developer Ira Drukier is applying a set of rather narrow consumer insights to create a different kind of luxury hotel. As reported in The New York Times, Ira's idea is that there's a market in Manhattan for a hotel with small rooms; and even shared bathrooms and bunkbeds; so long as it's equipped with wi-fi, iPod docking stations, and flat-screen TVs.
Drukier figures that if the rooms are clean, neat and wired, he'll attract young travelers whose only option at $125 a night is not nearly as, well, luxurious. "You can find hotels in the city that offer bunks for $89 a night, but the rooms are scary," says Drukier. He also expects to attract Europeans, for whom big rooms and private baths aren't essential. Point is, he's applying the principles of luxury to hone in on his target audience.
In the beauty-care category, Fast Company reports that Lush Cosmetics tightens bonds with its most passionate customers by offering up limited-edition "personal batches" of discontinued products online. As Simon Nicholls, Lush Web site manager, notes, "Only 300 people around the world will have these products." Oh, we happy few!
And in apparel, the cross between "luxury" and the "Long Tail" manifests itself in the advent of limited-edition T-shirts you can't find at say, Target, or even your local vintage-apparel boutique. Some people are willing to pay a premium for these shirts, because, as one boutique owner told The New York Times, "People like the idea that there's only one, that it's their own style."
It's enough to make one wonder about the future of luxury brands like Tiffany's, which recently opened a store at the foot of Main Street in tony, Westport, Connecticut. The new ice castle is just a Hummer skid away from Pottery Barn, Sunglass Hut, and Banana Republic.
So how is Westport Tiffany's doing? Who knows, but it sure looks kind of empty much of the time. Now, it could be that the burly security guards scare people away. Or it might be that in an affluent community like Westport, the sophisticates are buying their baubles somewhere less commonplace... meaning much smaller, more exclusive... more luxurious.
In other words, keep an eye on that Long Tail. When it whips around it could smack your brand right in the family jewels.Got something to say? Join the discussion!
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