With luxury products, the higher price point brings an entirely new audience to everyday goods and services, and brand management needs to consider their customer base very carefully and appeal to their sensibilities. Without the enticement of a low price point to drive business, high-end companies need to focus on an entirely different marketing strategy to strengthen profit margins.
Go beyond the product
A brand should have a very specific goal in mind with their product, whether it’s pushing creative boundaries, exploring the limits of technology or improving performance. Many high-end car makers, like Rolls-Royce and McLaren, invest millions each year into developing concept cars and prototypes to display at shows around the world. These vehicles aren’t sold; rather, they exist to show customers their own vision of the future, the dreams and goals of the brand, and how far they want the next product to go.
Expand your iconography
True luxury brands don’t rely on a single slogan or logo. Burberry, for example, is visualized through a series of images – the trench coat, the badge bearing a knight astride a horse, the capital B, and, of course, the iconic checked camel tartan. Utilizing different images means you can expand your product range over time and easily introduce new visual icons to keep your brand fresh and current.
Stay current
Luxury is always relevant while trends change. High-end brands that maintain their profits year after year aren’t afraid to change their aesthetic as tastes change. Fashion house Gucci has stayed on top by redesigning their ‘it’ girl to stay on-trend, ditching the edgy silhouettes and dramatic make-up for a softer, romantic look to correspond with the current fashion cycle. For top brands to stay afloat in the crowded luxury market, it’s important to maintain a dynamic aesthetic and be willing to keep their designs fresh and at the forefront of the latest fashion trends.
Keep the brand exclusive
Unlike mainstream brands, who try to push their products on as many customers as possible, some luxury brands draw customers in with the idea of belonging to an exclusive circle or club. Take Hermés, for example, which has a six-year waiting list – and a very hefty price tag – for their signature Birkin bag. Limiting the supply of a product makes it far more desirable, particularly for customers with large amounts of spending money who can ‘have it all’. Making a product exclusive and unattainable means customers are far more likely to want it. Even high-street brands such as Topshop and H&M are capitalizing on this marketing technique, releasing one-off collaboration lines with designers available at a select few stores for a limited time.
Go custom
The first luxury goods were uniquely hand-made by experienced artisans and craftsmen to an impeccable standard, and many high-end customers still crave that feeling that they own something unique and handcrafted. Brands today are emulating this by offering customization on their products, such as a chrome finish on a vehicle, special lining in a handbag or an engraving on a designer watch. Creating a product that is specially made for a single customer fosters loyalty to the brand, which ensures repeat business down the line.
