Michael J. Silverstein is a senior vice president and global consumer and retail practice leader at The Boston Consulting Group (BCG) and the coauthor of Breaking Compromises. Neil Fiske is a former vice president of BCG and is currently the president of Bath and Body Works. John Butman is an established business author and journalist.
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Contents Foreword vii
Preface xi
Part One: Trading Up to New Luxury
1 Trading Up to New Luxury: An Overview 3
The Characteristics of New Luxury 6
The Forces Behind New Luxury 9
Seeing the Pattern 13
A Preview of the Chapters 18
Trading Up Brings Benefits to Business and Society 21
2 The Spenders and Their Needs 23
Rising Incomes and Available Wealth 25
Increased Home Values and Equity 27
Reduced Cost of Living and More Discretionary Income 29
Women As New Luxury Earners and Spenders 30
A Changing Family Structure 32
A Longer Dating Period and High Rates of Divorce 35
Education, Sophistication, and Worldliness 36
Greater Emotional Awareness and Permission to Spend 38
The Four Emotional Spaces 43
3 The Creators and Their Goods 48
A Distinct Type of Goods 51
Supply Side Forces That Fuel New Luxury 55
Focus on Speed and the Collapse of the Innovation Cascade 60
New Luxury Is More Than Marketing 64
The Practices of New Luxury Leaders 65
4 Where Goods and Emotions Intersect 72
Taking Care of Me: Time for Myself, Convenience, Renewal, and Reward 75
Connecting: Attracting, Nurturing, and Belonging 82
Questing: Adventure, Learning, and Play 89
Individual Style: Self-Expressing, Self-Branding, and Signaling 93
Goods As a Language of Social Dialogue 96
Part Two: The Leaders
5 The World Is a Sexy Place 99
Born to Sell 100
Origins of the Victoria\'s Secret Brand 102
Patterning European Luxury Lingerie 103
Lingerie for the Most Beautiful Women in the World 105
Managing the Brand 106
The Thirty-Second Ladder 109
Lessons from New Luxury Lingerie 112
6 Eating As an Emotional Experience 115
The Rise of the Fast Casual Restaurant 117
Panera Bread: An Eating Experience Built Around Bread 120
The Cheesecake Factory: Around the World in a Meal 127
Trader Joe\'s: Questing in the Supermarket Aisle 129
The Winning Practices of New Luxury Food Suppliers 133
On the Menu for the Future 135
7 Only the Best for Members of the Family 136
Pets and Their People 145
8 Inside the New American Home 150
Winners and Losers 156
Battle of the Titans: Home Depot and Lowe\'s 157
Arbiters of Style, Taste, and Sophistication 158
Appliance Innovators: Sub-Zero, Viking, and Whirlpool 168
The Winning Practices of New Luxury Home Players 175
9 Awakening the American Palate to Wine 178
The Post-Prohibition Era: \"What\'s the Word? Thunderbird.\" 181
The American Awakening 183
Jess Jackson and the \"Fighting Varietal\" 189
A \"New World\" Order 195
The Master Blender\'s New Luxury Practices 197
The Trading-Up Pattern in Wine 199
10 The Old World in New Luxury Bottles 201
Belvedere: Reinventing Vodka 201
Samuel Adams: Brewing the Best Beer in America 209
11 Demonstrably Superior and Pleasingly Different 217
Ely\'s Vision: To Popularize the Game of the Rich, Famous, and Skilled 219
The Demonstrably Superior and Pleasingly Different (DSPD) Big Bertha 222
A Thirteen-Times Premium for Emotional Engagement 226
The Callaway Scorecard 228
The Callaway Legacy 231
12 A Cautionary Tale of an Old Luxury Brand 233
The Decline and Fall of an American Old Luxury Icon 234
The Best Car in America 235
A New Definition of Premium: Performance 240
Lexus: The Ultimate Reliability Machine 244
A BMW in Every Driveway? 247
Part Three: Excelsior
13 The Opportunity 253
The Opportunity in Services 255
Factors That Will Contribute to the Spread of New Luxury 257
The Demand Society: The Middle Market Takes Control 260
14 A Work Plan 263
The Impetus 263
Vision: Knowing Where and How to Look 265
Translation: Moving from the Abstract to the Tangible 272
Execution: From Rollout to Revisiting the Concept 274
15 A Call to Action 278
Is a Premium Price Strategy Risky in the Current Global Economy? 279
A Challenge to Our Readers 280
What Can Companies Caught in the Middle Do? 281
Why Is There Urgency to Act Now? 281
Part Four: The Back Story
Luxury: A Philosophical and Historical Context 285
About Our Sources 292
Chapter 2. The Spenders and Their Needs 293
Chapter 3. The Creators and Their Goods 294
Chapter 4. Where Goods and Emotions Intersect 295
Chapter 5. The World Is a Sexy Place 296
Chapter 6. Eating As an Emotional Experience 296
Chapter 7. Only the Best for Members of the Family 296
Chapter 8. Inside the New American Home 297
Chapter 9. Awakening the American Palate to Wine 298
Chapter 10. The Old World in New Luxury Bottles 298
Chapter 11. Demonstrably Superior and Pleasingly Different 299
Chapter 12. A Cautionary Tale of an Old Luxury Brand 299
Acknowledgments 300
Index 307
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