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forth luxury. Currently, luxury leans more towards the innovative than the traditional. 3. There are more "out of class" purchases now, both upwards and downwards. The wealthy feel no obligation to always buy expansive (actually, affluents typically look for the best deal on whatever they want to buy, no matter how extravagant). The no so wealthy have also developed an appetite for luxury when and where they can afford it. 4. There's a trend towards spending more on luxury experiences rather than goods, at least amongst wealthy Americans. This trend is stronger among seasoned affluents who already know that the attraction of objects wears out while cherished experiences just get better with time as they are remembered, told and re-told. 5. There are more luxury hits now and fewer classics. Luxury used to be defined in the tradition-driven past by classics. The novelty-driven present, that is evident in the non-luxury sectors as well, turns the success of luxury brands of the day into sweet but short-lived. The unchanging nature of luxury Despite all these significant developments, the nature of luxury has remained unchanged in essence. People buy luxury brands in order to: 1. Feel special and apart from the crowd. 2. Feel superior and privileged. 3. Feel of value and importance. 4. Exercise ability and freedom ("I can afford it", "I can do that"). 5. Reward themselves for efforts and achievements. 6. Console one and recuperate from a setback or misfortune. 7. Signal status and command acknowledgement and respect. 8. Demonstrate refinement, connoisseurship and /or perfectionism. 9. Delight the senses, experience pleasant sensations and feelings or create an infrastructure for future favorable experiences. 10. Participate in a certain group and lifestyle. 11. Signal affiliation and belonging. 12. Remind oneself of one's "real" (or aspired) identity. 13. Enflame hope and mobilize motivation and energy. 14. Indulge and pamper oneself, take care of oneself. 15. Feel loved, taken care of and even spoiled. 16. Show feelings of gratitude, admiration or great affection. Luxury brands are specifically designated to serve as means for consumers to fulfill one ore more of these tasks. Here are the ten eternal principles for developing and managing a luxury brand: 1. A luxury brand is first and foremost a product and/or service of superior quality (a quality gap from competitors is recommended but not mandatory). 2. The products and services are not designed and planned

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