Luxury firms may stand out, keep their products exclusive, and strike an emotional chord with customers by adhering to these marketing tenets.
Time, legacy, nation of origin, workmanship, artificial, small series, illustrious clientele, etc. are all intangible aspects of uniqueness that the luxury strategy seeks to exploit in order to generate the maximum brand value and price power.
A one-of-a-kind strategy that diverges from the norm is necessary for luxury marketing. Prof Kapferer and Bastien have made some rules by which luxury firms may adhere to these anti-laws of marketing to keep their products distinctive, authentic, and desirable.
1. Forget about positioning; luxury is not comparative.
Instead of focusing on how they compare to rivals, luxury firms should embrace their individuality. More crucial than sticking to a certain market position is standing out and making an impression.
Chanel does not compare its fragrances to those of its rivals; rather, it emphasises the narrative and emotional experience of wearing its scents, such as the classic sophistication of Chanel No. 5.
2. Ensure your product has enough flaws to give it soul.
Luxury goods and services might be more appealing when they have quirks and flaws that set them apart from mass-produced substitutes.
Woven textiles with imperfections: High-end labels like Missoni celebrate the handmade quality of their fabrics by highlighting the natural beauty of the materials and the artistry of the weavers.
3. Dominate the client.
Assuming the role of an undisputed expert in their industry, luxury companies should steer their customers in the right direction, behaving like the final authority.
Personalised consultations and trunk presentations are two ways Louis Vuitton satisfies customer preferences and creates an exclusive atmosphere.
4. Make it difficult for clients to buy.
One way to increase demand for high-end products is to make them seem rare and exclusive. A product or service may be made more desirable by limiting its availability or instituting a waiting list. This can lead to the creation of exclusive collections and customised, one-of-a-kind items, which can amplify the desire and enthusiasm for having that thing.
Hermès handbags are so desirable because of their restricted manufacturing and attendant waitlists, creating a feeling of scarcity.
5. Protect clients from non-clients, the big from the small.
To maintain the air of exclusivity, it’s important to segregate the high-end clients from the regular customers and provide them with personalised service.
To guarantee a unique and exclusive experience for its most valuable customers, Rolex stores, for instance, provide separate entrances for them.
6. The role of advertising is not to sell.
Advertising high-end goods and services shouldn’t be about pushing things as much as it is about developing a narrative around the brand and appealing to consumers’ emotions.
In place of overt sales pitches, Cartier’s marketing emphasises the history of the company, the artistry of the jewellery, and the significance of the wearer’s emotional connection to the piece.
7. Communicate to those whom you are not targeting.
Even if they aren’t the main target market, luxury companies may nevertheless reach out to a wider audience to create interest and demand.
The company’s catwalk displays and haute couture collections, which draw an audience outside of the brand’s direct customers, enhance the impact and reputation of the Dior brand.
8. The presumed price should always seem higher than the actual price.
Customers may believe they are getting a better bargain on high-end goods and services if their perceived worth is greater.
Tiffany & Co. emphasises narrative and high-quality packaging to rationalise the high pricing of their diamond jewellery, which highlights both the material and emotional value of the jewels.
9. Luxury sets the price; price does not set luxury.
Instead of following market trends or the prices of their competitors, luxury companies should price their products according to their distinctive selling points and the values associated with their brands.
Chanel maintains the perceived worth of its handbags by setting prices that go beyond their manufacturing costs, which are based on the brand’s image and exclusivity.
10: Raise your prices as time goes on to increase demand.
A sense of unattainability and exclusivity may be maintained by the use of gradually rising pricing, which can make items seem more desirable.
Chanel jackets and bags, which are considered classics by the fashion company, regularly see price increases. This solidifies their enduring allure and establishes them as investment-worthy wardrobe essentials, ensuring their uniqueness, exclusivity, and high demand.
11. Keep raising the average price of the product range.
To attract consumers who are looking for premium products, it is recommended to consistently raise the average price of the offerings. This will create the impression of exclusivity.
Automobile manufacturers: High-end manufacturers such as BMW and Mercedes-Benz often increase prices on their current models and introduce new, even more costly options on an annual basis.
12. Keep stars out of your advertising.
Instead of depending on celebrity endorsements, luxury firms can highlight their unique selling qualities.
Hermès, like Chanel, avoids using celebrity endorsements that may detract from their central message in favour of creative advertisements that highlight the quality and workmanship of their goods.
13. Cultivate closeness to the arts for the initiate.
Marketing efforts that use artistic aspects provide an air of elegance and refinement.
A company that values cultural discourse and creative history is Louis Vuitton, which works with artists on special collections and holds artistic events.
14. Don’t pander to your customers’ wishes.
Customers’ wants shouldn’t be the only motivator for luxury firms. If you want your brand to remain distinctive, you have to stick to your principles and your vision, even if it means disappointing some customers.
By influencing customer tastes rather than just meeting demand, electric vehicle pioneer Tesla sets the standard for innovation in the industry.
15. Don’t respond to rising demand.
Luxury firms might avoid expanding too rapidly to satisfy rising demand and instead concentrate on strategically restricting their customer base to preserve exclusivity.
Goyard keeps their leather goods manufacturing restricted, even when demand is great. This way, they can keep their workmanship and uniqueness.
16. Do not sell.
Using the correct digital marketing platforms can make a world of difference when it comes to promoting your luxury business. Instead of aggressively selling your services, concentrate on establishing an air of desirability.
Ritz-Carlton hotels, for instance, put less emphasis on aggressive sales methods and more on developing connections with guests to foster loyalty.
17. Do not relocate your factories.
The credibility and backstory of the brand may be strengthened by being loyal to its roots.
Burberry emphasises exceptional workmanship and stays true to its roots by making many of its classic pieces in the UK.
18. Do not hire consultants.
The credibility and uniqueness of the brand may be enhanced by tapping into in-house knowledge and experience.
LVMH thinks outside consultants could overlook the finer points of the premium market, so it emphasises in-house brand knowledge and understanding.
19. Do not test.
Market research should take a back seat to creativity and innovation for luxury firms.
Apple releases products with self-assurance, trusting their vision and knowing that market research can’t fully capture the emotional appeal of high-end goods.
20. Do not look for consensus.
Let people be themselves and think creatively; that way, unique, daring ideas may develop without worrying about getting everyone to agree.
Gucci avoids mindlessly following trends in favour of daring and, at times, controversial advertising campaigns that remain loyal to their own brand identity.
21. Do not look after group synergies.
A more varied and creative strategy for luxury marketing might result from an emphasis on individual talents and competencies.
Richemont is the parent company of Jaeger-LeCoultre, Cartier, and Van Cleef & Arpels. Every label runs its own business, with its own set of boutiques, ads, and products that appeal to a certain demographic.
22. Do not look for cost reductions.
It is possible to lower the standard and level of exclusivity of high-end goods and services by skimping on quality. Instead, high-end companies should prioritise providing customers with outstanding service and upholding strict standards.
Rolls-Royce is a legendary automaker that employs the best materials, emphasises hand-built workmanship, and offers personalised customisation. They value quality above efficiency to provide an exclusive and opulent ownership experience.
23. Do not sell openly on the Internet.
Luxury firms should not offer their goods or services openly on the internet to preserve an aura of exclusivity and carefully cultivate their online image, even if having a digital presence is important.
Hermès is one company whose website highlights history, brand narrative, and craftsmanship but does not facilitate online purchases. This highlights the importance of the in-store experience while safeguarding their distinct image.
24. Keep non-enthusiasts out.
High-end companies should communicate with a niche market that values and appreciates their products or services. Brands may reach their target audience more effectively and keep their message unique by concentrating on this specific market.
Ferrari cultivates a feeling of community and exclusivity around the brand by hosting private events and driving experiences for dedicated automobile aficionados.
Luxury firms may stand out from the crowd, keep their products exclusive, and strike an emotional chord with customers by adhering to these marketing tenets. These unusual concepts may assist high-end companies in distinguishing themselves in a crowded market and retaining their appeal to discriminating customers.