The Art of Inconspicuousness: Cultivating Luxury Brand Authenticity Through Selective Demarketing Practices

Abstract

The concept of luxury has evolved over time. Historically rooted in exclusivity and prestige, it was reserved only for the highest members of society. Over the years, luxury has become increasingly accessible, partially due to the democratization and accessorization of luxury. By opening their brands to a broader audience, luxury brands risk diluting their brand values and challenging the exclusivity that defines the luxury market. This paper explores the strategic implementation of demarketing in the luxury industry, focusing on its role in creating and upholding brand authenticity, a relatively unexplored area in academic research. Utilizing qualitative methods through semi-structured interviews with industry insiders, this study reveals how demarketing not only helps to maintain an exclusive brand image, but also strengthens brand authenticity when strategically aligned with the brand’s core identity and consumer expectations. The paper introduces a novel framework that maps the relationship between the intensity of demarketing strategies and the accessibility of luxury products. It also suggests a positive correlation between the intensity of demarketing strategies and enhanced brand authenticity, providing strategic insights for luxury brands to maintain their exclusive appeal while ensuring authenticity in a competitive marketplace. These findings make a significant theoretical and practical contribution to the field of luxury brand management, providing actionable strategies for effectively navigating through the complexities of modern luxury markets.