Will Anyone Ever Buy Hyundai As A Luxury Brand?

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By: Diane Levine

When Hyundai announced the 10-year, 100,0000-mile warranty a few years back, they took a big step towards repositioning a car company that had long been synonymous with junky vehicles. In one bold move, Hyundai became a brand that stood firmly by the quality of it products. More firmly, in fact, than any competitor out there at the time. And because of that, they became a brand whose quality you could trust — or at the very least, take a chance on. After all, the risk was all theirs. The strategy paid off. Today, the public perception of Hyundai is that of a company that "has come a long way." And they're fighting to go even further.

During the upcoming Academy Awards, for which Hyundai is the exclusive auto advertiser, the company will again be touting their Equus sedan, which at $58,000, marks the brand's effort to stake a claim in the luxury market. And I think they're going to find that tougher ground to break.

It's one thing to up your level of quality. But for a luxury audience, quality isn't the only thing that matters. You also need a little bit of cache. And no extended warranty or advertising strategy can buy you that. Here's what can.

1. Street Cred
Marveling at the surprising quality of a Hyundai Equus in a commercial is one thing. Seeing it parked among a row of luxury cars outside a five-star restaurant is another. Luxury buyers want what other luxury buyers want. Items that are universally recognized as being better than everything else. Until Hyundai sedans start to appear alongside other luxury cars in the real world, no amount of commercial time can make them a real player in the game. And as beautifully designed, elegantly appointed and glowingly reviewed as the cars get, buyers will still be left saying, "Yeah, but it's still a Hyundai."

2. Star Power
When's the last time you saw a Hyundai symbol in the flash of a paparazzi camera? Or heard a rapper namecheck the Elantra in a song about how he's finally made it to the top? Like it or not, we take a lot of luxury cues from celebrity lifestyle. We aspire to emulate our favorite movie stars, power players, and high rollers. And those people aren't rolling around in Hyundais. Yet.

3. Time
Soon enough, people who are old enough to buy cars won't be old enough to remember when Hyundai was pretty much just a Yugo by another name (I guess they won't be old enough to remember Yugo either). These buyers will always have known Hyundai as a pretty solid company, one that makes several good cars and an occasional great one. Maybe then, Hyundai will have its shot to capture the hearts and minds of luxury buyers. Of course, by then we could all be flying around in personal jetpacks.

I'm all for a good comeback, and I do think Hyundai deserves it, but I'm kinda pulling for the jetpacks.

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About the Author

Diane Levine develops campaigns and writes killer copy for advertising agency, Think Creative. She also blogs, tweets, and writes about meat. Find her here.

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