From the outside, it seems luxury brands can put any price they like on a product and it’ll sell. This phenomenon runs far deeper. It’s the foundation of some of the best business lessons you can learn from these luxury brands.
Luxury brands get most of their value from the ideology built around their products. They ride on the idea that you’re getting an exclusive item specially designed for a select few.
Here are three business lessons you can take from luxury brands.
Brand Positioning is Everything
Brand positioning is critical, which necessitates the implementation of a great brand strategy. Luxury manufacturers make no compromises in this area. They devise a plan that distinguishes them from their competition.
People will pay high amounts to be associated with that sense of exclusivity.
Scarcity Shapes Value
Luxury businesses have frequently been chastised for mass-burning their excess clothing. Burberry made waves for destroying up to $40 million in apparel in order to preserve the integrity of the luxury brand.
This is done by luxury brands to safeguard their intellectual property and to prevent unlawful counterfeiting. Furthermore, there would be less of a desire to acquire luxury products if everybody and everyone could afford them.
This applies to every aspect of a luxury brand. When we compare the advertising of a luxury brand product to that of a non-luxury item, we can see that the marketing campaign for the luxury goods is clean, straightforward, and brings attention to the beauty of that single object.
In comparison, a non-luxury brand would frequently have a crowded advertisement, providing too much information and causing sensory overload for the buyer.
The same is true for their stores. Luxury brands want to keep things simple. There will be no swarms of coat hangers stuffed with apparel, overflowing bins of buy two get one free, abandoned shopping trolleys, wrong shoe sizes in shoe boxes, or someone knocking into you every time you round a corner.