In 2020, the global luxury goods market generated nearly $220 billion. Indeed, luxury doesn’t come cheap. Look at Johnny Walker, Bentley, and Louis Vuitton — all these successful and renowned luxury brands were once unknown. But they now have a rich history and are recognized globally.
Can you build a successful luxury brand by putting a million-dollar price tag on a product? Hardly. You first need to master the art of creating the desire (or passionate imagining) for something extraordinary.
The greatest challenge of building a successful luxury brand is remaining exclusive while offering high-quality products all the time. Here’s how to build a strong luxury brand from the ground up.
Be Specific about Who Your Target Market Is
There’s a specific group of consumers out there (your target audience) that cares about your luxury brand. Figure out who these people are and focus on one buyer persona when starting out.
Almost 82% of companies that use buyer personas greatly improve their value proposition (The value a company promises to deliver to customers should they buy its product). Once you’ve established a strong luxury brand, you can start defining your ideal customer.
Frustrate the Status Quo
Be different. Set your business apart from other emerging brands. Sometimes frustrating the status quo and doing things differently is the key to building a successful luxury brand.
Take a brand like LUSH Cosmetics, for example. It’s created handmade makeup to set itself apart from big retailers like Sephora. By offering something different, the LUSH brand has risen to the top.
Do the same for your business. For example, if you’re a luxury car dealer who offers auto financing, you can offer loans with better terms to car buyers who prequalify for auto loan. Doing so helps you build your dealership and attract more car buyers.
Become a Status Symbol
If possible, hire influences in your niche market to promote your products on social networks. Then observe how they use your products. Creating the impression that only a select few ( popular and influential people) buy from your brand will make your target audience want to buy as well.
Offer Special Perks to Existing Customers
Want to build a successful luxury brand? Create exclusivity by offering special perks to all your existing customers. Or you can put a high price tag on your products and then employ scarcity tactics to increase your sales.
When Aston Martin introduced the Aston Martin One-77 model into the market, it employed this strategy by marketing the car as scarce and setting a high price tag. It sold 77 cars and made a whopping $138.6 million from the sales.
Up your Game
To consistently deliver value to your customers, up your game. After all, luxury brands set the bar too high. So, with every customer interaction, remember to keep your brand’s promise—whether it’s making them happy or enhancing their lifestyle. Building a successful luxury brand calls for consistency from day one. If you stick to the above tips, you can build a strong luxury brand from scratch.