Luxury marketing doesn’t play by the rules of regular marketing; and that is because the drivers of demand for luxury products are totally different from the drivers of demand of regular good or services. High value, exclusivity of access, scarcity and other features of a true luxury (formerly explained HERE), all mean that the strategies used could go as far as being a polar opposite of marketing a regular product / service.
In this article, we will be sharing with you 12 reversed rules of luxury marketing. These rules are in use at all the big houses of luxury from cars to bags, passing by jewelry and high end lifestyle management:
1- Forget about positioning; luxury is not comparative. The moment you compare the luxury to any other product out in the market, you’re risking involvement in a price war; something a luxury brand should never do.
2- Does your product have enough flaws to give it soul? Luxury is often handmade. Craftsmanship has value when it comes to luxury pieces, this is why every piece needs to be unique and the traces of small hands should be there to witness.
3- Don’t pander to your customers’ wishes. You should be leading the market, not following or catering to it.
4- Keep non-enthusiasts out. You don’t want anyone who’s not really passionate about your brand. That’s also an up-selling technique.
5- Don’t respond to rising demand. And understanding the market curve can add value to your product as well as constant mark-ups.
6- Dominate the client. Do not respond to clients’ demand, instead impose your own vision. Luxury is non-negotiable.
7- Make it difficult for clients to buy. Limit access to your product by using exclusive channels of distribution.
8- Protect clients from non-clients, the big from the small. Make sure your big clients do not have to mix with the general public, and have access to special treatment and exclusivity.
9- The role of advertising is not to sell. It is to create demand, which you won’t be completely satisfying.
10- Communicate to those whom you are targeting. Better yet, make them communicate with you, after having filter the true luxury connoisseurs.
11- The presumed price should always seem higher than the actual price. People need to assume your product or service is really high!
12- Luxury sets the price; price does not set luxury. Price wars, discounts, and value pricing are all out of the question.
At The Luxury Makers we handle our clients’ luxury marketing strategies A to Z, we provide consultancy and also oversee execution. We also handle our clients’ luxury PR and target HNWIs professionally, through subtle pull strategies that are rarely used in the current market. Contact us through email email@example.com or through the contact form linked HERE, to inquire more.
-Stay tuned for part 2 of this article very soon!-