Like it or not, but we do value luxury services or products: we are captivated by their messages and dreams they are selling to us. Premium products always carry a higher price tag and that’s what partially draws us. By dressing designer brands or buying into the most expensive gadgets available online, we prove our worth that way. It’s perhaps marketing to blame for such society’s obsession with luxury products. So how do marketers make us believe their stories? What are the essential components that each luxury service or product is build on? How to identify that your service can be classified as a luxury one? In the following article, I will give you some insights to above questions to help you understand the luxury sector in a much more comprehensive way.
#1 A Hefty Price Tag Is A Must
Luxury has its own price and everyone knows it. It would seem rather unconvincing if you offered your customers a product that’s branded as one-of-a-kind, but is priced so as everyone could afford it. Hefty price tag means exclusivity and it’s a part of a branding strategy. It makes customers feel that they are special and that they belong to a small fraction of people who can afford such products. May it be a marketing promise, but it works and luxury products remain one of the most desirable industries to tap in. Therefore, keep in mind that pricing strategy is one of the core components, by which luxury sector can be classified. Think of the price tag and take this seriously. Don’t set the barriers too high or too low – just find that point where price would reflect both the costs of making the product as well as the luxury side of it.
#2 There Must Be A Dream Behind Product Or Service
Customers don’t just buy into functional qualities: they are paying for their dreams. All luxury services are about stories, dreams and fairytales that give customers satisfaction. Whether it’s feeling exceptional or belonging to a specific group of people with particular beliefs – it has to be meaningful and engaging. This is particularly valid in the fashion industry where luxury fashion houses build their value upon heritage, brand ambassadors and associations. As Louis Vuittonidentifies itself with ‘journey’ perception (life is an ongoing journey and it’s much smoother with iconic French luxury house) or Chanel bases its story on mademoiselle Coco Chanel(stylish and strong woman who built her fashion empire and empowered other women with a sense of French elegance), you also have to craft a story for your product.
#3 Your Brand Has To Be Coherent
Coherence is very important when marketing any product, but it is even more crucial when it comes to luxury sector. Everything has to be very consistent: marketing needs to reflect brand values and brand values need to signify the dream the brand is selling. When marketing your brand, make sure that you are consistent and that across all channels your message is the same. Even though you need to be coherent, you can’t be repetitive. Therefore, finding distinctive ways how to express the core of the brand is very important, as consumers will need to be continuously fed with information.
#4 You Have To Conquer Your Market Share
Even if you are creating a niche brand, you must conquer a very definite market share. Whatever your brand does – may it be luxury candles or exclusive sleepwear – you need to be known as one of the top players in that market. In order to increase your market share, you need to invest in brand awareness. The more people will be aware of your service or product, the more potential customers you will have. Once you get hold of that, you need to ensure that such traffic converts into customers. However, that’s not enough and you will have to work very hard on increasing engagement with your customers and turning them into loyal customers. Tracking what your competitors do, ensuring unique value proposition or building referral system – it will all contribute to your increased market share.