In a world where many people value exclusivity, quality, and status, luxury brands have carved out a unique niche for themselves. From designer fashion and jewelry to fine dining and travel, luxury brands are at the cutting edge of innovation and style. This innovation and style is often reflected in the content and strategies that luxury marketers employ. But how do luxury brands captivate their audience and maintain their desirability? In this article, we'll delve into the world of luxury marketing and explore the strategies brands use to elevate their image.
What Exactly Are Luxury Brands?
Luxury brands are those that offer products or services associated with rarity, excellence, and high prices. They are often seen as status symbols and are popular among high-net-worth individuals (HNWI) and aspirational consumers. Luxury brands operate in markets such as designer fashion, jewelry, cars, hotels, events, cuisine, cosmetics, and travel.
As consumer preferences shift and new generations enter the market, luxury marketers must seek out fresh and creative ways to engage their audience.
What is Luxury Brand Marketing?
Luxury marketing differs from marketing for regular brands in several key aspects. The strategies used to promote luxury goods and services cater to a unique set of consumer expectations and desires.
Some of the main differences include:
Target audience
Luxury brands target high-net-worth individuals (HNWI) and aspirational consumers who are willing to pay a premium to own exclusive, high-quality products. These consumers are by nature hard to find, so data-driven approaches help identify and entice them by speaking to their aspirations and values.
This can change from generation to generation. In recent years, for example, luxury brands have also focused on appealing to millennials and Gen Z, who tend to value experiences over material possessions. According to an Eventbrite report, more than 3 in 4 millennials would choose to spend money on an experience rather than buying a product.
Globally, 56% of millennials and Gen Z say that “prioritizing experiences over material possessions is important to their personal life” (Kantar). This of course presents a challenge to luxury goods manufacturers, who need to innovate with new services (such as repair services), experiential marketing, and intangible goods like NFTs.
Exclusivity and scarcity
Luxury brands must create a sense of exclusivity to attract their target audience. Strategies may include offering limited edition products or restricting availability, hosting exclusive events, or providing personalized services.
Prioritizing brand image and credibility
Maintaining a strong brand image and reputation is crucial for luxury brands to justify their high prices. This requires careful management and positioning of various brand touchpoints, like advertising, product design, customer service, and online presence. Luxury brands often have a well-defined identity that resonates with their target audience and sets them apart.
High prices
Sometimes pricing itself can be a marketing tactic. Luxury brands leverage their high prices to create a prestigious image. This appeals to customers, who are more inclined to pay a premium for the bragging rights that come with scarcity. This strategy comes with risks, as affluent consumers can be price sensitive too.
Celebrity collaborations and endorsements
Working with celebrities and influencers enables luxury brands to promote their products and enhance desirability. “Partnerships and endorsements have always been critical to enhancing and bringing to life specific brand traits,” says Dr. Federica Carlotto, Program Director of MA Luxury Business at Sotheby’s Institute of Art. “However, the increased number of marketing media channels has made the management of celebrity endorsement more complicated, as brands need to confront consumers with testimonials across a variety of marketing formats — consider for example the recent Met Gala.”
Advance your career with a certificate or degree in Luxury Business. Learn more about our short courses and our Master’s Program in London.
What Are the 4 E's of Luxury Marketing?
The 4 E's of luxury marketing are a framework created by luxury marketing expert Michel Chevalier. It provides a guideline for luxury brands to create effective marketing strategies that appeal to their target audience.
- Luxury brands should captivate customers' emotions to create desire and aspiration. This can be achieved through storytelling or aligning with customers' values and beliefs.
- To create a sense of exclusivity, luxury brands can make customers feel unique and important by offering limited edition products, personalized services, or hosting invite-only events.
- By delivering memorable experiences, luxury brands can offer value beyond their products or services. Tactics may include immersive retail environments, tailor-made offerings, or experiential events.
- The extension of brand values and image beyond products and services is essential for luxury brands. Strategies may include collaborations with other prestigious brands or creating content that mirrors the brand's values and associated lifestyle.
How Do I Get Into Luxury Brand Marketing?
If you're interested in pursuing a career in luxury brand marketing, there are a handful of crucial ways to stand out in this highly competitive industry:
Firstly, Develop Your Industry Knowledge
Having deep industry knowledge is essential for breaking into the competitive world of luxury brands. Your knowledge will not only set a strong foundation for success, but will also enable you to anticipate market trends, create innovative campaigns, and cater to your brand’s customers.
According to Dr. Carlotto, a great starting point is to learn about successful luxury marketing campaigns and partnerships. “This will provide you with ideas that can be tailored in other settings. At the same time, get familiar with the big marketing players and influencers in the industry,” she says.
She also recommends familiarizing yourself with different marketing channels as professional tools, especially social media and video communications tools. It is invaluable to have an understanding of these tools and their functions, specific visual and textual language, and performance metrics.
If there’s a specific brand you would like to work for, take a deep dive into that brand’s market. Dr. Carlotto emphasizes that the “market” is not just the brand’s customers, but also the ecosystem of audiences and the communities in which the brand is inserted. Taking a holistic view is vital as public scrutiny of brands’ corporate behavior continues to increase.
Tip 2: Create a Robust Portfolio
Pursue projects for your portfolio that showcase your marketing experience and skills. This is a crucial step, as it displays your talents and strengths in a tangible format for potential employers. Your portfolio can include examples from internships, freelance work, or personal projects.
Emphasize your relevant roles, responsibilities, and accomplishments. It's valuable for employers to see your contribution to marketing campaigns, brand growth, or sales. If you don't have direct work experience, you can instead showcase personal projects. This could include marketing strategies for hypothetical luxury brands. For those specializing in content creation, include samples such as ad designs, social media content, or copywriting to display your skills.
Tip 3: Network and Attend Industry Events
Establishing connections with industry professionals and attending relevant events are both great ways to advance your career in luxury marketing. You can engage with professionals on LinkedIn and join professional organizations to expand your network. Also consider finding a mentor, as they are invaluable once you begin pursuing marketing positions.
Conferences are also a great opportunity to make connections and learn more about the industry. Many top-tier publications have marketing conferences, like the Financial Times Business of Luxury Summit.
Tip 4: Earn a Degree or Certification
Although not required to work in the industry, getting a degree or certification in luxury marketing can help you fast track your career. A luxury marketing program can provide you with specialized knowledge and help you develop your expertise as a marketer. Many programs emphasize hands-on experiences and real-world scenarios to better prepare students for success in their careers. These programs also present valuable networking opportunities, connecting you with industry professionals, faculty members, and alumni who can provide insights and job opportunities.
Many institutions offer specialized programs, like Sotheby's Institute of Art, which offers online courses and a master’s program in Luxury Business.
Luxury brand marketing is an evolving field, where brands must innovate and adapt to maintain their value. As consumer preferences shift and new generations enter the market, luxury marketers must seek out fresh and creative ways to engage their audience. As the world of luxury brands continues to evolve, there will always be a need for skilled and innovative marketers to help brands thrive.
Advance your career with a certificate or degree in Luxury Business. Learn more about our short courses, and our Master’s Program in London.