If, like me, you enjoy and admire luxury brands, you’ve probably considered how hard it might be to build your own luxury brand. I’ve often considered what exactly it is that creates the ‘luxury’ association, and here, I’d like to discuss my thoughts.
The road to creating a luxury brand is tough. If you create a new product with luxury elements, you’ll need to create a strong marketing buzz around it. Building the sort of customer loyalty that major couture houses enjoy, for example, can take decades, if not hundreds of years. For context, Hermes implements strict rules regarding who can acquire one of its iconic bags. Waiting lists can last six years – and even getting on the waiting list is a struggle. Hermes ranks customers in relation to previous purchases and their reputation with the company.
Those seeking luxury search for quality, reputation and scarcity. Many people make luxury purchases as an investment, too – such as a Rolex watch or a limited-edition sports car.
There are several appealing qualities I’ve found luxury brands exude, and I’ll share a few here.
High-quality craftsmanship: Luxury brands are renowned for giving their products meticulous attention to detail and delivering superior quality. They often use the finest materials and employ skilled artisans to create products of exceptional quality.
If you want to launch a luxury brand, think about the materials you might use, the craftsmanship and time involved, and how you plan to communicate these factors to your audiences.
When we buy a luxury product, we expect it to last – and often, purchases like watches or handbags are made as investments – there’s an assumption that they will increase in value.
Exclusivity and scarcity: We’ve all seen queues outside designer stores when a new product launches. Luxury brands – cleverly – often produce limited product quantities, creating that sense of exclusivity and rarity – and contributing to the brand’s desirability and prestige.
Scarcity taps into consumers’ desire for uniqueness, exclusivity and the pursuit of luxury. It generates a sense of urgency and competition, leading customers to place a higher value on the products.
We often see limited edition items only available from certain exclusive retail partners. By carefully managing scarcity, luxury brands can create a perception of desirability, maintain price premiums, and foster greater customer loyalty.
Brand heritage and tradition: Many luxury brands use their rich history, heritage and even famous product owners to highlight their expertise, reputation and legacy. However, some new brands create an immediate sense of luxury and desire by creating a product that is cool, trendy and the ‘thing to have.’
Global tech giant Apple, for example, has mastered the art of creating scarcity and desire. The limited availability, controlled releases, unique features, branding, and customer experience all contribute to the perception that Apple products are highly coveted, fostering a loyal customer base and driving strong demand for its offerings.
Strong brand identity and image: As a luxury brand in an ever-increasingly competitive market, you must invest heavily in cultivating a distinct brand identity and image. Sophistication, elegance and prestige can all be communicated through marketing campaigns, packaging and overall presentation.
Chanel, for example, has established a highly manicured image that strongly resonates with consumers seeking refined luxury. The brand’s attention to detail, classic aesthetic, exclusivity and carefully curated marketing contribute to its meticulously crafted image of sophistication and elegance.
High price points: Luxury brands, of course, are associated with premium pricing. Elevated price tags reflect superior quality, exclusivity and craftsmanship. Higher prices also serve to maintain the perception of luxury and exclusivity.
Superior customer service: In the luxury sector, brands put great importance on exceptional customer service. Often service is the key differentiator – I’m thinking of the difference between a mid-range and high-end hotel within the same chain – the difference is down to service, product quality and décor. Top brands aim to create more personalised, memorable experiences for their customers, often offering one-to-one consultations, after-sales support and other VIP services.
Finally, Innovation and creativity: Luxury brands often push boundaries and innovate in their designs and products. You’ll often find collaborations between leading brands and renowned designers and artists to create unique, avant-garde collections that hold appeal to discerning customers.
Having discovered all these elements that go towards creating a luxury brand, you begin to understand why they manage to command a high price.
