Luxury has the power to give to people an idealized image of beauty and satisfaction. Until the mid 20th century few people could afford to have luxurious items and only a privileged class of society had access to luxurious items. However in the past fifty years the tide has turned and luxury has come down to majority of the people in the shape of brands, which are targeted at upper middle class. This change to brands (luxury) started its way slowly in 1980s, where the rise of individualism fueled the power of business and brands sprouted up to be consumed by wealthy consumers. The purpose of the brands was to spread the charm and luxury creating a personality cult, where people would identify themselves with their brands (Koehn,2001).
Branding is the foundation for a business, which is meant to label a product. In marketing brand is considered as an embodiment of all information related to a product. A brand normally includes a name, logo, images, fonts or services, which typically arise in consumer's mind, when a name or logo is mentioned. Thus we can say that brand is a combination of attributes, which are communicated through emotional attachment with a product. The value of brand is in the mind of consumer, which creates this promise of satisfaction. However brand is not mere creating emotional attachment, but it moves beyond emotional forms and give two kinds of experiences; direct and indirect messaging. For example a customer driving a car is gaining direct experience. However it is not possible for marketers to send direct message for all their products, they opt for indirect experiences, such as Nikkei products are associated with fun, excitement and sport as portrayed in TV commercials and magazines (Bush & Victoria, 2004). This kind of branding is repeated again and again to make it effective in consumers mind. Thus we can say that branding main purpose is to convey product message in multiple ways involving consumers in a compelling way to think and buy the product. The value of brand lies as a security for the company earnings. As a result a new company would go to any length to develop its own brand to become unique for the reason that branding creates a separate identity, for which consumers are willing to pay more, resulting in greater earning for the company (Ehrenberg &Neil, 2002).
Normally consumers used to think that cheaper products are better. The producers believed that if they lower down their prices, their product will be a definite hit, but in modern marketing, things have changed. For example, there are two kinds of washing powders, A and B. A is $3 cheaper than B, yet B succeeds and A fails, despite being lower in price. The reason is that B powder has been working brand image through advertisement, which has been created by the company perhaps portraying more cleanliness and sophistication, while A powder manufacturer has been silent and trying to save money, which in the end costs the company to be a follower rather than a leader (Cathy &Walgren, 1995).
The postmodern consumer is wealthier than ever and has extra money to spend on branded items. It is normally becoming equal with friends or colleagues, which creates this brand competition. For example having a car is not a big issue these days, but a professional executive will not like to drive a cheap car,