Without branding, there is no luxury.
This is a bold statement to make, but I have arguments. Or better than arguments, I have an exercise for you. Would you like to buy the purse in the photo on the left? Or from the right? Now, if I tell you that the photo on the left was taken by an impostor and in fact, both purses are not original. And the purse in the photo on the right is actually very expensive, and only very exclusive people can buy it. Which do you prefer now? Everything is perception. Luxury is not only determined by design, quality, and exclusivity but also by the associations people make with a certain brand.
What is luxury branding?
In simple words, it is a branding strategy to differentiate yourself from the competition through luxury. This sense of exclusivity and luxury will make the brand more attractive; its prices will be more expensive, and it will increase the desire of the people who look for the finer things in life.
Luxury brands are generally associated with:
Good, timeless design
Excellent customer service
High level of craftsmanship
But it is important to understand that luxury branding is more than having these brand characteristics. Luxury branding is not only an experience but also the ability to display status. If people don’t perceive this status, the brand will not be worth its asking price.
The benefits of luxury branding
- Unmatched prestige
- Better prices, meaning almost always better margins
- Access to affluent consumers
- Higher customer loyalty which translates to word-of-mouth marketing
What you must be aware of
- Brands must have a constant balance between accessibility and an air of elitism. People must be able to buy but feel exclusive when doing so.
- Your communication must match luxury. If you want to sell to an exclusive and select group, you must show like one.
- Affluent consumers require not customer service, but personal support. Never underestimate the experience.
- You must create a compelling brand story. Take for example Coco Channel and its French elegant background.
Learn with a story
Sophia was a lucky woman. She had her 9-5 job, where she earned good money. She had a nice lifestyle. Sophia was not an expert in champagne, but she loved to have a glass when brunching with her girlfriends. Meaning, even though some champagne is much better than others, she really didn’t notice a huge difference when drinking exclusive champagne. One day, her husband tells her that he just closed a huge deal. Very happy, she decided to celebrate her husband! She invited his best friends and went to the supermarket to buy some groceries. She decided to buy champagne to celebrate. Sophia really didn’t know which one to choose and ended up buying a Dom Perignon. She felt that it was an important moment to celebrate.
What association does Sophia make? Sophia associates the Dom Perigon with luxury, with an exclusive moment, with prestige, and this, my friend is only achieved through branding.
When to apply luxury branding
Please, just, and only apply luxury branding when:
- When you want to target a specific, niche segment
- When you can create a special experience, paying attention to every detail
- You are not changing your price strategy the first year because you think your prices are “very high”
- When you want to spend on luxury marketing
- We have experience with luxury branding
- We understand the dos and don’ts
- Even if you want luxury branding, we will not charge you luxury prices