Follow these tips to cultivate an exclusive brand image and high-end consumer following.
Even though the luxury markets may seem difficult to break into, they present excellent opportunities to earn high profit margins on your products or services. When you're selling luxury products and services, you can make more on each sale.
Just as important is the fact that luxury markets can be lucrative, even during recessions. During the Great Recession, several luxury brands, including Hermes and Louis Vuitton, saw their brand value increase significantly while other stores went out of business.
The marketing strategies that work on regular customers won't necessarily be effective with luxury audiences, though. Here's how your luxury brand can win over high-end customers.
Don't compete on price
Most consumers who purchase luxury products still care about price, but it isn't their primary concern. They're willing to spend more if they feel that the product is worth it. You'll get more customers if you focus on demonstrating the value of your product instead of competing on price.
Another problem with going for lower prices is that this can backfire and leave consumers with the impression that your products are of lower quality. If your luxury product is priced lower than all your competitors' goods, consumers are more likely to wonder what's wrong with yours.
It's common for people to associate higher prices with higher quality, and vice versa, especially if you emphasize quality in your marketing campaigns. By making quality a focal point and setting your prices to match, consumers will associate high quality with your brand. Once that happens, high-end customers won't have a problem paying a premium for your products.
Focus on the exclusivity factor
Although quality is one big reason consumers choose luxury products, they also desire the exclusivity factor. They want something that not just anyone has. The everyday consumer is fine with mass-produced products, but the high-end customer definitely isn't.
The way you focus on your brand's exclusivity factor depends in part on your products. Choosing materials of the highest quality is always a good way to separate your brand from the rest. You may also release small quantities of your product lines or limited-edition products, which ensures that only a small number of interested customers can get those items.
High-end brands begin with their discerning customers in mind. They aren't afraid to alienate consumers who don't fit the bill. Don't be afraid to provide a service that not everyone can afford, because not everyone is your audience anyway.
This may seem counterintuitive to making sales, but, remember, you're playing the long game here. In the short term, you may be giving up potential sales by only releasing smaller numbers of your products. But it will pay off as consumers see your brand as something exclusive and unique. They'll know they need to purchase products they want immediately, because they may not have the opportunity later.
Use the right marketing channels
Not only do you need to market your luxury products correctly, but you also need to know where those high-end customers hang out. You can't blast out a marketing campaign to everyone and expect results, but most people either won't be interested in your products or won't have the disposable income to afford them. And if you advertise everywhere, it takes away that exclusivity factor.
Magazines and websites that focus on luxury topics and finance are excellent choices for reaching high-end customers. You could run pay-per-click (PPC) ads or sponsored posts on these sites.
Influencer marketing is also a common choice among luxury brands. Seventy-three percent of luxury brands use it, compared to 54 percent of non-luxury brands. When people see their favorite influencers using your products, it builds your brand's image.
Building a luxury brand is unique in that it's not all about getting as many sales as possible. It's just as important to develop your brand's image so consumers associate it with quality and exclusivity, and are open to paying more. The way you market your business will play a key role in the image it has and the customers it attracts.
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