Rethinking Prestige Brands [By Vanessa Teo]

Luxury branding is one of the best methods you can use to strengthen and boost your brand. By applying sophisticated psychological principles, people will accept what is essentially a powerful delusion. The marketing wizards persuade a man sitting in a business meeting that his Rolex watch gives him a leg up on the other managers found in that room. He says to everyone who is present, ‘my superior professional skills have allowed me to purchase this watch.’ No words are exchanged, it’s just a quiet confirmation of superiority.

The question is, why do super luxury brands exist? Does the iPhone handle a call better than the next premium phone competitor? Does a Mercedes use a warp drive to carry its passengers more quickly, while traveling the same distance, as other high-end car brands? The answer is no. These brands can charge premiums for their products because they are giving something more than just the product.

People are, by nature, insecure and fearful and they constantly seek validation. The luxury good purveyors of the world know this about mankind. Their constant message is some variation of, ‘you need this, it will show everyone how well above them you actually are.’ You need this to signal strangers and your status as an elite. Your Hermès bag sends a clear message of your importance, of your wealth level and achievement of status as someone with significant means.

However, just having that status doesn’t necessarily mean you are above others. And while this does offer some great benefits for the companies that sell these products, it can also lead to issues for those that aren’t independent from a financial standpoint at this time. Luxury doesn’t have to be the main target in life and it should be similar to ideas like exclusivity for example. People see it as their main focus and unfortunately this is a very bad thing as they are interpreting luxury in a different way than it was even a few years ago.

One thing to note is that luxury did not change despite the fact that its meaning might be controversial at times. Its main focus is still a high standard of elements no matter if we talk about services, materials, products and so on. The way people think about luxury has changed quite a bit mostly due to social media and intense marketing.

Nowadays, luxury is synonym to a great customer experience and a great relationship with the people that purchase your products. A customer wants to see good quality and great results. Having a high price for a product is not enough today. One needs quality, professionalism and expertise. You need to create a product or service that generates emotion and which will entice people to purchase what’s offered. It’s more about focusing on the experience rather than the price itself.

If there is a winning strategy here, one has to place the customer behaviour in the middle of each marketing strategy. Thinking about the customer behaviour is a good place to start the marketing strategies and boost all luxury brands. This will show your company what customers want, what they believe in and what they like to purchase. The company has to remove friction and instability issues, and provide them with the best solution that they are in dire need of.

Your business doesn’t have to lower the prices of a luxury brand in order to reach success. Social and digital media channels have to be harnessed as fast as possible so that the brand can create a great connection with the audience.

  1. Make each purchase meaningful regardless of its online or offline nature.
  2. Allow the customers to enjoy their purchase experience and let them enjoy everything your business does.
  3. Understand the customers and their expectations, then create a brand that showcases their beliefs.
  4. Work around their ideas and create a lifestyle that delivers an amazing value.
  5. Help customers understand that they want results and a very good value from their life.

This is the only true way to attract, engage and retain customers. Once your offering has their attention, you will have to continue innovating in order to stay relevant and reach greater success!

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