According to the American Heritage Dictionary, the definition of luxury is “something inessential, but conducive to pleasure and comfort”. The antonym of luxury is “necessity”. In essence, while a luxury brand may be highly desirable, it is also “difficult to obtain”, and as a result, perceived as an extravagance, frivolous, and self-indulgent — something a consumer can easily do without. Consumers understand this. They desire luxury brands, but they don’t need them.

The same dictionary defines upmarket as “appealing to or designed for high-income consumers.” While this definition is historically accurate, the massification of class has prompted us to modify our definition of upmarket to better reflect the modern consumer mindset: “appealing to or designed for me”. Starbucks coffee, Red Bull, the iPod shuffle, BMW automobiles and Timberland footwear are all premium priced brands purchased by wealthy consumers. But they are also coveted and purchased by consumers who are far from wealthy. To these consumers, these upmarket brands are an essential part of their being. They will forgo or reduce their spending on other “less essential” things to keep purchasing the brands they need.

Consumers haven’t stopped spending. But they will trade your brand if they think they can get the same for less. The lesson is consumers are willing to pay a premium for perceived value. Protect your brand, exploit your strengths, build brand loyalty. Make a case for uniqueness- offer something that no one else does.