Luxury is a word that makes most of us picture a gated community, a trophy spouse, and a private yacht. For many, it’s a word that’s synonymous with the class of people who don’t fly in coach and don’t eat in fast food restaurants.
For the luxury industry, it is the perception of value and exclusivity. It can be applied to a broad range of products and services, from high-end cars to online dating sites.
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Why do people buy luxury goods?
Exclusivity! People have always bought luxury goods, but why they do so has changed drastically over the years. In the past, a product was considered luxury if it was scarce. A person of means would show off his wealth by wearing a fur coat in the dead of summer or driving around in a horse-drawn carriage. Luxury brands sold small quantities of goods that were considerably more durable and high in quality than mainstream products. Also See
Reaching the right audience
The question then becomes, “How do we reach the right audience?” The answer: There are no simple answers.
Starting a luxury brand is not about marketing strategy.
Instead, there are four elements that any new luxury brand must have in place before launching:
- Choose a product/service that is unique and provides value to the consumer.
- Give the brand a name that can stand the test of time.
- Make it simple to understand what makes the product special and worth paying for.
- Create a brand personality that is unique and memorable enough to stand out in a crowded field of competitors—this will help your audience remember you but also allow you to build your brand genuinely over time (no overnight miracles).
Creating a memorable experience
Today, the luxury market is flooded with choices for consumers. There are few distinctions between products, and it’s no longer enough to have great quality (because everyone has that now).
The key to luxury success is creating a memorable experience for your customers (even if you are a B2B company). The first step? Get their attention. Take a cue from Uber—the ride-sharing service that can take a passenger from New York to San Francisco in minutes.
How to determine what your customers want
The key to this is to know what your customers want. This is where the luxury marketing strategy comes into play—and must be executed with great care.
Luxury marketers often use focus groups and market research to identify their customers’ needs and desires. These efforts are a vital part of creating a unique offering that stands out and generates excitement among consumers.
Branding
Luxury brands have been around for quite some time. Famous luxury brands include Dior, Hermes, Vacheron Constantin, Cartier, and Tiffany. These brands have set the tone for the rest of the industry. They’ve refined their product with color, presentation, and design that make the luxury lifestyle seem all the more glamorous.
Luxury is a competitive world because many companies are competing to slice the growing market share for consumers who want to experience class in their everyday lives.
Social Media
One innovative new way to market a luxury brand is social media. Everything from Twitter updates to Flickr photographs can inform consumers about the brand and its products. See our social media content services.
For luxury goods, technology plays an important factor in driving sales. People are more likely to purchase a product online than in a brick-and-mortar store because it is convenient. Internet companies like Etsy and Zappos have become big sellers of luxury products over the past few years.
Online Advertisement
Companies in the luxury industry still use direct mail and print advertisements. These are very expensive to use, so more and more companies have shifted to online advertising to reach more customers.
Perhaps the most effective fashion advertising is on Facebook. Facebook has over 600 million users, compared with YouTube’s 55 million users, so the number of potential customers on Facebook is much greater than the number of people who frequent YouTube.
Personal Branding
Luxury brands have an image to uphold. That image is one of exclusivity. People who buy luxury products want to feel like they have something special, and they want others to know that it is special. People may not be able to tell the difference between a $1,000 Dior bag and a $5,000 Dior bag, but everyone can tell the difference between a BMW and a Mercedes-Benz.
Influencer Marketing
Luxury brands were the first to use influencer marketing. This is done in the form of lucrative endorsement deals. An example is Nicki Minaj received $8 million to endorse a line of handbags.
Luxury advertising agencies help luxury brands market the products they carry and research which brands are most successful in converting customers. To direct the research, a “brand voice” must be written that embodies the market segment and business strategy.
Then, luxury advertising agencies can conduct focus groups to determine what traits make a customer loyal or lucrative as an endorsement target.
Final Thoughts
While trends may come and go, luxury is always in. As long as consumers want to make a statement with their purchases, great products will continue to be sold. The key is to stay relevant and anticipate the next consumer desire before everyone else.
In Conclusion – Why Luxury Advertising Agencies Are Vital To The Success Of The Luxury Industry. Luxury advertising agencies are more important than ever before to maintain the relevance of brands in the industry today.
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