Creating a luxury brand is all about making sure customers receive an item or service of exceptional quality, and marks us (rightly or wrongly) as one deserving of excellence.
A great example is that of the automobile. At the turn of the century, there were very few cars because only the rich could afford them. A car was a luxury. But when car production was revolutionized and they became a commodity, how could one consider the car a luxury? That is where branding came in. You would like to drive a Mercedes or BMW if you would like to show your wealth and status. Or perhaps you would like a Ferrari or a Bugatti if you want to show you are filthy rich.