Brand deflation in Asia


Luxury brands are working hard to keep up with a more dynamic environment with more discerning, knowledgeable customers who have different requirements for value. To retain these customers requires a greater understanding of the those requirements and less emphasis on the mass economy tools such as positioning, reach, awareness.

Loyalty is also less of a factor as consumers see their exclusivity watered down as luxury brands go mainstream and sell their product to anyone. Those brands that don’t understand customer requirements for value may lead to brand deflation, according to Michael Bleby in this article for BRW in Australia