I will distinguish two different forms of premium marketing. The first is rich marketing which considers strategies to target individuals with high net worth (HNWIs) or a very high income, who are able to uphold a luxurious lifestyle in all aspects, including an upper class social life (consumer level 3 in figure 2.1). The other term is luxury marketing, defined by Takahashi (2005) as strategies to target customers of luxury companies, whether they might be rich, mass affluent, or simply middle-class consumers who are trading-up (levels 1-3 in figure 2.1). Thus, rich marketing is a part of luxury marketing. Due to the appearance of the new rich, the way luxury marketing has to be performed in Japan has changed. In the following sections 3.1 to 3.4 I will outline six main points that together form the base for my luxury marketing model:

This is an online version of my working paper dealing with luxury marketing in Japan. It is updated on a regular basis. The online version includes interactive elements and comments not included in the print version.

6 Miyamoto et al. 2006: 4, 7 Davis 2006; Nunes et al. 2004: 16, 8 Customer lifetime value means the total estimated profit from a business relationship with a customer over the life of relationship, 9 The approximately 7 million baby boomers will receive 50 trillion yen (ca. 320 billion euros) in retirement allowances. See Usui 2006: 60; Hakuhodo 2004; Hakuhodo 2006a; Higushi et al. 2004,
10 Takahashi 2005: 11.

11 Takahashi 2005, Usui 2005, Tsuchiya 2007, 12 The term was coined by Silverstein and Fiske 2005: "At the high end, consumers are trading up, paying a premium for high-quality, emotionally rich, high-margin products and services. At the low end, consumers are relentlessly trading down, spending as little as possible to buy basic, low-cost goods and services.", 13 Chadha and Husband 2006: 58.

LUXURY AND HNWI MARKETING IN JAPAN