“Luxe” seems to be a state of mind or inclination that allows consumers to be extravagant despite the cost. For those who can afford it, and many who can not, “luxe” is a constant craving for distinctive upscale living, good health, and peace of mind.
 
One friend exercises her very “luxe” inclination for food by ordering the best fish, the best salt, the best tea, online, every day. For  dinner, she has fish straight from the Tsukiji fish market and sweets from Kyoto’s most prestigious bakery. For three days, she ignored a deliveryman who was trying to replenish her supply of expensive bagels. She needed more time to eat her existing supply and make space in her “bagel room” (a special area allotted to bagels in her freezer).

Not everyone is so particular about where their food comes from. But even for the not-so-glamorous instant ramen noodle (the Japanese comfort food) there is a status hierarchy. Some noodles are classier than other noodles. 

Nissin Cup Noodle has been the best-selling noodle brand since it was introduced in 1971.  Its recognizable logo and simple packaging are features of everyday life throughout Japan. But this year, to compete with lesser-known, lower-priced noodle brands, Nissin came out with a new product, Soup Noodle, that is smaller, lighter (more water, less noodle), and sells for 30 cents less than its big brother.

By producing a cheaper but similar product that is primarily sold in 99-yen stores (equivalent to dollar stores in the US), Nissin can sell lower-end noodles without weakening the Cup Noodle brand. At the same time, Soup Noodle benefits from Cup Noodle’s well-established image.

Lawson, one of Japan’s biggest chains of 24-hour convenience stores, is applying a similar strategy with a new group of higher-end Natural Lawson stores in select locations. While Natural Lawson sells some of the same items as the original Lawson, the sandwiches and rice balls are all organic, the wooden chopsticks that you receive with lunch are made of natural domestic cedar, and the stores are furnished with environmentally friendly materials. Instead of sneaking those organic products onto the shelves in a traditional Lawson store, the company is using Natural Lawson to revive the overall brand and move it toward a more sophisticated image.
 
On some streets in the middle of Tokyo, you can choose from 20 stores offering cheesecake made by famous pastry chefs or try to figure out which of the 10 discount drugstores in a single block is worth trying. In this sea of an almost ridiculous proliferation of products and services, marketing products based on strict demographics doesn’t seem to be enough.

For a Japanese branding and marketing team, “What age is this person?” is less useful than “What kind of social class, lifestyle, attitudes does this person represent?” By looking at the buying patterns and inclinations of consumers, Japanese marketers can understand not just what they want, but what makes them want it.

While consumer attitudes and needs shift with the economy and other social changes, “luxe” marketing is successful, at least for now, because marketers are shifting their focus from demographics to psychographics.