When it comes to luxury, people like to think of brands that bags made of genuine leather, silk, sports car, and big houses. People can easily recall all these brands, but they are unable to explain or give a definition that befits the word. Luxury for some people can be different from that of others living on the other side of the planet. It is more than just something that people want; it comes with prestige, tells a lot about the people who wear them and possess fantastic price tags. But it’s safe to say that luxury brand is not about being expensive, decorated with gold and diamonds or possessing ridiculous design. The history of selling branded, high-quality products begin from as early as the 17th century and possibly earlier. Back then, luxury has a rather negative connotation that is related to slavery; only those with power possess a luxurious life. Or rather, they proved themselves powerful by showing expensive and exquisite objects. However, as civilization begins to change and human rights established, luxury today has a more positive, self-empowering meaning. Many people are aspired to be able to purchase the classic famous GST from Chanel, considering it as a milestone in life. To be able to show such items to people make them feel confident about themselves, that they have reached a certain level of success. There are also people who want to become trendsetters and to maintain that status, they are willing to spend much and be invested in purchasing luxury goods. There are many types of luxury customers and we have talked about strivers who purchase luxury goods to show success as well as trendsetters.
There are aesthetes who focus on the aesthetics side of the products. Rather than purchasing something to prove themselves right, they now focus more on internal satisfaction. Their motivation to spend is found on their inner preferences, often influenced by what people like family, friends and social media influencers say or do. Luxury is hard to define, but it’s easier to define what it’s not. Luxury is not about simply being expensive, but it contains a more intrinsic value that makes users feel personal and special when they get their hands on the product. Luxury is not about price, but pricing is certainly important if they want to maintain a good image of the product. Prestige pricing is important for these brands to both earn profit and maintain their branding techniques. In executing prestige pricing, companies must also remember to launch products at an entry-level price. Loyal followers of luxury brands are not always buyers nor do they have the purchasing power, yet. However, companies are required to maintain their loyal followers because they might one day be people who are able to purchase those items one day. A strong psychological effect can be seen when the right pricing strategy is executed. That is why companies must remain engaging with their customers at all times and provide more affordable products without lessening the perceived value of the products. Companies who are only beginning to start as a luxury company may face big challenges as the luxury brands that we know as of now come with a long history of providing high-end items.
Marketing luxury brands are not easy because the key to doing it is to truly understand where one stands and the perceived value of customers. With the technological advancement that we have today, it is imperative that luxury brands also quickly tap into the power of the Internet. Luxury brands have long been famous with only the word-of-mouth of their loyal customers. The brands possess centuries of history in delivering luxurious bags, clothing, cars, etc. However, the new generation is now heavily exposed to the Internet and while luxury brands remain famous, more competitors are providing the same services, selling similar items with similar functionality. It takes more from luxury brands than simply relying on their name to sell and educate the new generation of their existence. Luckily, luxury brands are today setting up their own sites and are exposing themselves on social media platforms to engage with customers. Brands are putting more items for display on their online catalog, connecting with customers, sponsoring and endorsing iconic figures. Only a handful of people are willing to spend on luxury brands and within that handful, only a small percentage of them are influencers, loyal customers with a vast network. This makes it important that the brand engages with customers at all times because it’s impossible to know when will one of them turn into a loyal customer. Engaging will also keep them in the forefront line of online marketing. While brands need to engage with the customers, it is very important that luxury brands that sell exclusivity to never sell hard. Luxury brands still want to make a profit; however, they need to act and believe that they do not need to beg or suffer just to do that.