[butterfield]

A Very REAL Threat...

The democratization of luxury - which finds luxury automakers pushing down into more mainstream segments with product entries that have enough design cues and engineering features to qualify as the “real thing” – at least to consumers who wouldn’t have considered the brands before - is now consuming everything in sight in this business.

Some manufacturers (BMW and Mercedes-Benz, to name just two) insist that the democratization of luxury is merely the cost of doing business at this point, that it’s a required operational strategy in order to increase volume and profitability, attract younger buyers and buyers new to the brand, and to ensure these companies’ ultimate long-term success.

But the ever-present danger is that in the process of embarking on this strategy, the luxury brands are upending the market’s stability and demeaning and degrading their brand integrity, bringing their “specialness” into question.

The democratization of*stupidity. - Rants - Autoextremist.com ~ the bare-knuckled, unvarnished, high octane truth...

 

[cics]

Sucks that brands have to degrade themselves but it's what it has to come down to if they want to stick around and for a long time

 

[Sweet Tooth]

I think its partly because less people are able to afford luxury vehicles now. The solution? Change the definition of luxury. All the sudden now more people can afford luxury again.

 

[butterfield]

I think its partly because less people are able to afford luxury vehicles now. The solution? Change the definition of luxury. All the sudden now more people can afford luxury again.

thats not true one bit, its that income inequality made everyone all uppity, when income inequality meant consumption inequality.

IT was unfair that only people of means were able to purchase a Mercedes so now in the name of equal rights and staying true to anti discrimination laws, MERCEDES for EVERYONE!!!

This is a problem with perceptions not with cashflow.

 

[AMGz]

I think its partly because less people are able to afford luxury vehicles now. The solution? Change the definition of luxury. All the sudden now more people can afford luxury again.

This is what should be done, too bad it's not what is in fact is being done. Sucks that just about anyone with a decent job can get 'luxury'

 

[Sweet Tooth]

thats not true one bit, its that income inequality made everyone all uppity, when income inequality meant consumption inequality.

IT was unfair that only people of means were able to purchase a Mercedes so now in the name of equal rights and staying true to anti discrimination laws, MERCEDES for EVERYONE!!!

This is a problem with perceptions not with cashflow.

I don't really see how what i wrote is "not true one bit." Increasing income inequality means that there are more super rich people and more poor people but less middle class people. Middle class people buy luxury cars most, so having that demo shrink is not a good thing for automakers.

making cheaper vehicles allows people with less money to buy them and also lets them participate in the luxury market.

I think that we both agree here. I don't see how what I said is at odds with what you are saying.

 

[alcatraz]

It's weird because I feel that a Mercedes-Benz does come with a certain perception of luxury and status, but its not like all Mercedes-Benz vehicles are created equal. It's not like a CLA has the same curb appeal as a CLS or a S-Class. Most people aren't educated on every Benz model though, so I think a lower end luxury vehicle will do the job in convincing those people.