In a volatile retail market we deep dive into why some luxury brands have had successful sales despite the pandemic of the past few years.
Despite the last few years being unpredictable with a pandemic, it has been impressive to see luxury brands and their ability to transform their unique marketing propositions into extended brand strategies in 2020 and beyond.
Here we look at some of the key reasons perhaps luxury brands withstand the economy in a volatile retail market.
Luxury Brands Know Their Customer & Tailor to their Customer
Luxury brands know their customer well.
They know everything from the styles that appeal to their customer to the ads that catch their eye. Most of all, they sell an idea and convey this through sophistication, and simplicity.
Luxury brands are known for their expertise and detail; therefore, they do not need any visual noise to convey their messages. Less is more.
They play with your subconscious, so that when you see luxury, you see something attainable yet buying into it is something beyond the mainstream.
Luxury is as much a concept it as it is a physical product, and it is in the power of their brand story and marketing it which sets them apart.
They know exactly how to reach their customer & this was even more evident in 2020 when many luxury brands embraced the technology and digital spaces to enhance their brands even further.
Luxury is an Experience in its Path to Purchase
Luxury is an experience and one that is both appreciated and savoured.
This is always highly considered throughout the path to purchase. Its adornment can be seen from their website to their showrooms and continue with their packaging and service.
The same high standards they apply to their product range apply to their advertising design. Here, you’ll find a refined look with images in locations beyond everyday reach.
Their digital navigation is simple and the customer service like a concierge is instant. This degree of fine detail often goes unnoticed oozes professionalism, elegance, and luxury.
The product in return makes you feel special and brings fulfillment whenever you see it and use it. You may find yourself speaking of the product fondly, sometimes glowing at how great you think it is.
Standards are high and imagery is precise. During the pandemic companies pivoted to online solutions, and this it is now a vital part of their omni-channel marketing strategy.
They know their digital audience
Most brands use social media, but luxury brands really know how to use it to create unique perceptions and stories that tell their story.
They do not chase customers vying for exposure at every opportunity. Instead, they are in the right places where they are discovered. Pinterest is the main social media site for luxury brands. Contrary to popular belief, Pinterest is not a social media site but a visual search engine.
Thanks to the platform’s nature that displays products in all their glory, luxury brands leverage it to full effect, showing their product’s natural clean lines and or natural beauty.
Although luxury brands have a presence on other social media sites, the importance of hiring professional, experienced and creative agencies like The Brand Foundry always pay off in the long run, for the amount of value such agencies bring in building a brand’s luxury presence, recognition and conversions.
Storytelling at its Best
High-end brands are very good at creating stories. Whether it be about their own rise to fame and fortune or creating a fantasy world to enhance the visualisation of their brand and what it stands for. The stories and content capture our imaginations and entice us to be apart of this story.
Good luxury brands excel at making a product weave a tale in your mind, and they leverage this to full effect.
Brands that cater to a luxury market are exclusive. Yes, they may sell shoes, perfumes, watches, etc., but their design is authentic and unique. This sells the brand and establishes its reputation as being a cut above.
In 2020 luxury goods proved to be resilient despite the COVID pandemic.
According to a 2020 Deloitte report, the world’s Top 100 luxury companies generated revenues of US$252billion. More than half of these companies remained profitable, with 13 of these companies reporting double digit growth net profit margins.
2021 continues this resilient trend across the globe, perhaps because of these key factors; They know their audience, and they are consistent in their branding throughout their path to purchase, but most importantly they offer value and expertise and speak to these key elements through visualisation, digital avenues, and exclusivity.
Ask us how we can help tailor your luxury brand into something far beyond current market trends @brandfoundry