Marketing for luxury brands requires a different approach. The reason? Luxury brands are an entirely different animal. Customers purchase luxury for different purposes. Some of them do it out of their own interest. While others do it to show off.
Luxury items are social status definers. People like to collect winning medals. Social status encourages us to buy branded items to boast to others. Reportedly, people tend to seek social status to boost their confidence. When they were losing in an auction, they bought more to pay for the loss.
New luxury brands are constantly replacing old ones. The market only gets better and pricier. Starting from $12,000 mother-baby diamond tennis bracelet sets to $600 jeans, $800 haircuts, and $400 bottles of wine. Even though it’s not rare for anyone to duplicate a designer handbag nowadays (or making a replica with a likely original logo), the richest customers of our country have 9000 personal chefs, get plastic surgeries often, can afford to pay $400 for hourly tutions as well.
In the beginning of the 21st century, the social analyst Thorstein Veblen talked about the customer’s unnecessary showy purchases. He mentioned that we purchase things to make “invidious distinction”, which stands for us to make others jealous by showing off our ability. Thorstein named this “conspicuous consumption” to indicate people’s hunger to show off the Affordability to buy expensive items. Veblen’s outlook was motivated by the material excesses of his time. Veblen was the writer in the times of “Robber Barons,” when Figures like J.P. Morgan, Henry Clay Frick, and William Vanderbilt earned tons of money. They competed with each other and showcased their financial power by throwing extravagant parties.
Buyers follow the “conspicuous consumption” to highlight the status bar. It’s time, the luxury brand marketers get the idea that these status standards differ from exclusive limited editions to A-grade replicas. People who have knowledge about these standards will instantly pinpoint the authenticity by a glimpse of a branded watch or bag in others’ hands. While some might need a mic to make their knowledge obvious.
The luxury brands hold various status standards. Wealthier people who don’t need to showcase their standards will most likely be on the quiet side. It’s a hint for the luxury brand market that not all their customers will love popping logos and flashy cues which highlights conspicuous consumption.
Luxury brands are a medium to enlighten people about quality, lineage, status, and taste.
It’s usually a compound of certain symbols like outstanding logos, designs, monograms, patterns, pictures and a popular website that has good website traffic. Take Bottega Veneta for example. Their leather products don’t have any flashy logo. How do you recognize them? Well, their products are instead known for the exceptional intertwined leather patterns.
Luxury brands will manufacture different lines of aspects and products to reach the highest market value. For example: heritage, homeland, craft, scarcity, and reputable clients. These advertisements quench enthusiasm of having a “work of art”, but viva voce is equally important. Online opinion influences about 50% of luxury brand buyers to make purchases, says McKinsey. The finest luxury brands like Burberry, Rolls-Royce, and Johnnie Walker are paying better attention to online marketing along with outlets.
Fascinating approaches by luxury brands are much appreciated. Few formalities need to be done to get there. A good example would be Le Labo perfume. They have a unique purchase method. Each bottle of perfume will be hand-made according to the customer’s taste in front of them. The decant is then labeled with the date and the customer’s name printed on it. Before using it the customer needs to refrigerate the decant for 7 days as the final preparation.
To keep a brand’s exclusivity intact products should be available only for the people who can afford it. Hermés sets a good example. To be able to buy Hermés’s limited-editions or “it” bags, customers must have a previous history of purchases.
Few basic rules of luxury brand marketing are:
- Performance: Better practical and passionate experience.
- Pedigree: A brand’s outstanding previous record.
- Scarcity: Limited edition, expensive material products.
- Sponsorship: doesn’t have to be paid. Just a regular shoutout to the brand.
- Pricing: Have a comparatively higher price maintaining the quality.