Women have been flocking to see the latest Sex and the City film. While the reviews haven’t been that positive, this article by Cynthia Sliwa on the JCK Blog makes the jewelry look quite appealing. While I think that Sliwa’s statement that ‘there’s no more romantic gift than jewelry’ works for many people, it must be noted that people interpret things in different ways, and what one person thinks is the most romantic thing in the world another person might find off-putting.

The whole Sex and the City series is quite interesting to look at in terms of Theta and Lambda. As the women portrayed in the series are stylish urbanites who are the best of friends, many women want to emulate them and match their styles. In this way, Sex and the City fans fit into the Theta worldview, where they seek affiliation and unity, looking to contextualize themselves within a larger group of women with the tastes and styles of the four Sex and the City protagonists.

Yet a Lambda worldview prevails in this new film: Carrie, the main character, received a unique diamond-studded black diamond from her husband Big, who says that he gave her such a unique ring because there’s no one else like her. Lambda personalities seek originality and challenge, and love products that make them stand out and feel unique.

It’s nice that both worldviews are included in the film, but could the popularity of the series make these black diamond rings become popular so that having one no longer makes the possessor unique? With a series so popular, it’s certainly a possibility.

At this year’s 2010 Baselworld trade show, some 2000 renowned brands came together to unveil their latest,luxury products. Among these was a new line of watches by American watch maker Hamilton. Prominent in the US, Hamilton’s unique, signature style consists of a classic yet retro design. Matt Baily, an authorized dealer in luxury watches and jewellery talks about the different variety of looks and styles on his blog, from the classic RailRoad series to the futuristic Hamilton Lab models.

The design which garnered the most attention was the Pulsomatic. A reinvention of the classic digital watch Pulsar, it also has the history of being the first ever digital watch. In addition to this, it has a sapphire crystal, differs in size slightly (width of 49mm and height of 39mm) and allows the owner to view the automatic winding inside via a sapphire exhibition back. It is this unusual combination of mechanical and digital craftsmanship which makes this a truly unique piece. Lambda personalities will be attracted to this watch for its innovative and atypical design but will find themselves loving it because of its rich back story. It is also a back story of achievement and success, something which Lambda personalities will immediately feel an affinity with.

Another watch to look out for is the RailRoad series. Immediately, its name suggests an historical connotation of some kind; this is correct because it links back to another prestigious piece of Hamilton history, of the time when Hamilton watches was an important provider to the railroad industry. Subtle hints of such a history can be seen in the pocket-watch like aspect of the Chronograph model. This model might appeal to either a Theta and Lambda personality because it incorporates elements which will appeal to both sides. The historical back story will again appeal to Lambdas’ much desired sense of heritage and achievement, whilst money-conscious Thetas will love it because it is an inconspicuous but luxurious piece.  This ultimately gives them that essential, comforting piece of mind. I have discussed the importance of this in my previous blog.

Those with edgy and adventurous tastes might prefer the Hamilton Lab series. It features several unique and distinct concept models:

The Hamilton Time Player is a square titanium watch with an uncanny resemblance to sliding puzzles that many of us loved as kids.

A white version of the Ventura XXL was amongst the off-beat Hamilton watches of Baselworld 2010. The asymmetrical stainless steel case is adorned with a white rubber strap and dial and is very well suited as an oversize piece for women as well as for male fashionistas.

What’s more, these models are only available on the new Hamilton Lab website, thereby increasing the exclusivity of it.

Whether you are a Theta or a Lambda, Hamilton’s latest range of watches appears to have something to offer. Perhaps this is in effort to combat the economic recession. Whatever it is, it is a smart move because diversifying their collection can only mean one thing: more interested buyers.

New reports suggest that India’s luxury market is growing and maturing quickly. Earlier this week Forbes reported that the luxury boutique hospitality association, Relais & Chateaux, recently launched in India.

Relais & Chateaux president Jaume Tapies said:

We currently have 40 members in Asia and I’m confident that we can reach 100 in the next three years. We started looking at India in 2007 and enrolled our first member two years ago. We plan to add five more members in the next 18 months. My big surprise in coming to India was when I saw the deep understanding there is for what we stand for.

Mr Tapies’ findings about India are not surprising. I’ve written previously about luxury real estate in India taking off, and luxury automakers fighting for dominance in the Indian market.

What Mr Tapies’ findings do mean is that more major brands in the luxury industry are taking notice. What started as a small drip of interest at the end of 2009 has turned into more of a torrent.

Mr Tapies’ quote “I saw the deep understanding there is for what we stand for” is very interesting, too. Relais & Chateaux is for the discerning luxury customer. Considering the price point for their rooms, it’s clear their primary target market are Theta personalities. Much of India’s newly-wealthy class could be considered Thetas.

Thetas are concerned with truthfulness and denounce fakes. The screening process to become a member of Relais & Chateau is a long-term assessment to determine whether the hotel is “real” or “fake”:

We have a team of nine inspectors who visit the property incognito and submit a technical report to the board which makes the final call. Typically, the process takes a year. We have to be scrupulous as 1.5 million people trust Relais & Chataeux every year. Collectively, our properties do 750,000 room nights annually at an average room rate of 345 euros.

Relais & Chateaux is catering to those in India who, now with greater incomes, are becoming hyper-aware of how they are perceived by others, especially those they believe to be part of the social class that they wish to belong.

The people who stay at these hotels know the rigorous inspection process that member hotels undergo. Because this is such public information, it adds to the allure for an Indian Theta.

When they book a reservation to stay at a Relais & Chateaux hotel, they are likely to tell their friends and colleagues. They need people to know that they are able to afford to stay at such an exclusive hotel in their home country.

As more major luxury brands take notice of India’s heightened luxury profile, it could inspire neighbouring Asian countries to take notice and make some changes.

For $700,000 you could own historically significant chimney piece heads. They’re not just any chimney piece heads. According to Luxist, it’s:

An extremely rare, important and well-preserved neo-Gothic terracotta chimney piece commissioned for Franz Joseph I, Emperor of Austria, King of Bohemia and King of Hungary, in the late 19th century

For potential buyers, the most important aspect of this is not the craftsmanship, or even how the chimney piece heads look. The most important aspect is its age and royal associations.

A Theta personality will be attracted to this because of the piece’s backstory. This piece serves no purpose other than to be put on display. Thetas gravitate toward luxury items that can be added to their existing personal picture and sense of unity. Thetas would see this item as fulfilling that need.

Thetas look for benefits that improve their social standing. Thetas look for recognition. As I mentioned above, this item would be bought and immediately put on display. A Theta personality would take great pride in showing off this historically significant item off to their friends and others who he perceives as also being part of his desired social circle.

The two guards on the chimney are engraved with a staying that Theta personalities would find great significance in:

Two knights standing on Corinthian columns flank the mantelpiece, which also bears the Emperor’s motto Viribus Unitis, “With united forces.”

Thetas seek unity within themselves, so it is likely that a Theta will attach some personal significance to this phrasing, which would make the item more attractive. Also, because the item is so old, it will likely become some kind of personal adage for the Theta personality.

Ultimately it will be the item’s rarity that will be the most items most attractive feature. Thetas will link their status to the rarity of the product. According to their worldview, if the product is rare, it would imply to anyone viewing it, that the owner, too, is unique.

World famous sports and entertainment arena Madison Square Garden in New York City, is developing a “supersuite” for the highly affluent segment of its clientele. The 5,000-square-foot suite will fit up to 300 people and is said to feature granite-topped kitchen islands, formal dining tables, full bars and a fireplace.

The cost of enjoying the supersuite remains to be confirmed as pricing decisions have not yet been made, but the Vice Chairman of MSG, Hank Ratner, has said the company is trying to learn from other sports venues who are cutting their prices in an uncertain economy. The Yankees, for example, have cut the price of over 100 front-row seats from $2,500 to $1,250 after seeing empty rows of the top-priced spots game after game.

But prices are still likely to be only in range for a select few. MSG is determined to pursue the development despite difficult financial times, and hopefully there are still enough people able to afford spending their money on this type of experience. As MSG itself is already a very strong brand on a global scale, it definitely has good prerequisites.

The supersuite is also likely to appeal to most people, whether they have Theta or Lambda worldviews on luxury. The self-focused Lambda would be attracted to the opportunity to show off his wealth in this one-of-a-kind environment. The Lambda would also be drawn to the freedom of movement and sense of independence that the suite would offer, as compared to even the most attractive seats. The socially-focused Theta would instead find it appealing as a means of gathering all of his friends and associates together in one place.

I found this recent article about how luxury retailers are weathering the financial crisis to be very interesting. In three different places, it describes how luxury is shifting in a Theta direction. Let me elaborate:

The author describes a shift to craftsmanship from ‘bling’–appreciating craftsmanship is something that Thetas do. On the other hand, Lambdas believe that nature creates luxury, not craftsmen.

Francois-Henri Pinault, the chairman of French group PPR was quoted as saying, “People want a return to genuine values like timelessness.” Thetas think luxury is timeless, while lambdas think that luxury requires a lot of time.

Suzy Menkes, fashion editor of the International Herald Tribune, said that luxury consumers are looking for designer goods “that can be passed on to the next generation.” This characteristic of luxury holding its value over time is another Theta mark, whereas Lambdas think that luxury holds its meaning over time.

Is the global economic crisis shifting the luxury market towards Theta? I’m not sure–I think there will always be space in the market for Thetas and Lambdas. It just takes different marketing strategies to reach them.

Photo by *spud* via Flickr

Janusian Thinking is derived from the concept of paradox.

Janus, the Greek god of doors and gates and beginnings and endings, was most often depicted with as man with two heads, each facing in opposite directions.

The obvious benefit of such a dual perspective – and the underlying power of Janusian thinking – is that it provides the ability to consider multiple perspectives simultaneously. Failure to do this results in decision-making paralysis, depression or in wasted effort, pursuing false goals.

Variants of Janusian thinking are applied in contemporary contexts to military planning, corporate strategy, and academic analysis.

Janusian thinking can be a valuable tool in everyday life. Our modern existence requires us to weigh complex, competing phenomena concurrently and make decisions we can stick by, despite having incomplete information.

In this blog I often apply the concepts of Janusian thinking to luxury marketing and to the behaviour of the diamond industry, but it offers us many more valuable insights into human behaviour. Mastering Janusian thinking holds the key  to moving beyond personal and institutional blockages and becoming a committed, purposeful leader.

In my PhD I offered descriptions of two predominant ‘worldviews’, which I termed Theta and Lambda.

People tend to prefer one of these two Theta or Lambda worldviews in their pursuit of life purpose, and thus also in the pattern of their purchasing decisions.

The Theta-Lambda worldview is particularly applicable to one’s consumption of luxury products as this category of goods and services aims to tap into our desire to reflect externally what we see as our internally derived identity.

While we can only see the world from one perspective, we can strive to respect and understand that there may be a different perspective, thus also respecting the person who has adopted that viewpoint.

Handling this apparent paradox – of holding one view to be true while allowing for another valid perspective to exist – is the key to achieving a rich and full interpretation of the world.

The Wall Street Journal’s Wealth Blog recently posted about how true luxury — “goods that are rare, expertly made and sold to a select few” — is on the rise in spite of the recession. The wealthy seem to appreciate the exclusivity of luxury, and the economic climate has widened the gap between those who can afford to spend on true luxury and those who can’t. In a recent survey of private jet owners, 94% defined luxury as ‘for one’s self’ rather than for the masses. This is in line with my my thinking, that luxury depends on how the individual interprets it.

While I didn’t have the chance to research this for my PhD, my feeling is that Lambda personalities are the early birds and will be the early majority to start spending on luxury again. I hope to have the opportunity to research in the future whether the purchasing cycle from early birds to late comers follows from Lambda to Theta. My colleague Randy has observed that Lambdas tend to spend more than Thetas on similar offers. Theta buyers buy smaller diamonds, for example.

We are now seeing Lambda consumers interested in bespoke (and more expensive) purchases while Thetas will potentially follow later. This could be explained by the yearning of the Lambda for novelty while Theta look for social affiliation so the society has to be created first so they can join it.

It seems that the economic crisis has put many luxury shoppers into a state of shock. We can’t forget that luxury is what makes us human: it allows us to choose. People learned quickly how to overcome this shock.
Lambdas have already started but Theta will follow. Thus all the claims that the cheaper stuff is out is premature. People will go back to Burberry but it will take some time since the more expensive things will be sold first. However, if we talk about an economic recovery in 2010, luxury recovery will start earlier, maybe in 2009.

Unbranded shopping bags, secret shopping parties at homes, purchases made to look like gifts–these are the lengths to which people are going to hide their spending from their husbands, wives and the public this holiday season.

The New York Times and the Daily Beast have both recently run articles about how people who don’t want to be seen as insensitive to the financial crisis are finding more discrete ways to spend money. Who are these people (mostly women judging from the reports), and what do their new habits say about luxury?

I believe that many of these women are classic Thetas–they seek affiliation and control, and want to contextualize themselves in a group of like-minded women (a group that often gets together and has these secret shopping parties.). They are not acting like Lambdas, who seek achievement and uniqueness and want to stand out.

Said an editor at Allure, a likely Theta:

Shopping is almost embarrassing, and a little vulgar right now.

Despite this sentiment, people are still going out of their way to consume luxury secretly; there’s still demand for it. Thetas are seeking it out on their own–perhaps more attention should be placed on reaching Lambdas during the recession to unlock their desire for things they need.

As the economic crisis turns into a recession, luxury companies are showing signs that they’re being affected negatively. According to this New York Times article, Marc Jacobs has cancelled his lavish annual holiday party, Mastercard SpendPulse estimates that luxury spending dropped 20.1% in October, magazines are reporting cutbacks, and luxury companies (including Graff Diamonds and Brioni) are purchasing fewer advertising page.

Surely these budget cuts and delays in marketing plans are a worry for luxury companies. But a greater worry is that the credit crunch will change peoples habits and make them less willing to spend on the very best. Wealthy people may no longer think it’s appropriate to wear $280,000 earrings to events while so many others are losing their jobs. Will the recession force conspicous consumption to end and make people stop buying luxury products all together?

I’m hopeful that the answer is no: if people stay true to themselves and they way that they interpret luxury, they’ll continue to buy what gives them the most pleasure. Thetas will find perfect things for affiliation, and Lambdas will find things that make them feel truly exceptional. Economic conditions may make the luxury buyer’s budget smaller, but if he or she is buying something (like a diamond) that represents love in a relationship, such affection won’t be suppressed by difficult economic times.