First of all, what is luxury? A straightforward way to define the term is to think of luxury as the ability to create extreme value for an individual. Hence, no brand ever will be luxury to everyone, but it must have the ability to be of extreme value for some. To create value, which is so high that it becomes non-linear, a luxury brand needs to be fully centered around a specific need of the client. Hence, it’s never about the brand but all about the ability to have a specific role in the life of a client. 

Years of extensive university research and numerous brand and category audits have shown that, fundamentally, brands that manage to achieve such a critical role gain a significant shift in how they are perceived. People who understand the signal of an extreme value-creating brand feel a significant perception shift in several key dimensions related to themselves.

https://jingdaily.com/luxury-brands-disappear-2030-key-risks/