the greatest challenges for luxury brands

The Greatest Challenges For Luxury Brands

The first greatest challenge for any luxury brand is trying to define the term ‘Luxury.’ The word itself – Luxury - is being used and abused so much that it seems to be losing its real meaning. However, a clear understanding of the true meaning of the term ‘Luxury’ is very important for products and brands to position themselves in the market. It is important for true luxury brands to carve an identity and make themselves distinctly different from other brands such as the premium and the fast fashion brands. This positioning of a brand as a ‘real luxury brand’ is important if the brand identity and brand values are to be established and maintained.

Going forward, luxury brands are able to sustain growth and retain market share only when they offer ubiquitous products that do not compromise on uniqueness. The key lies in catering to the masses while, at the same time, nurturing craftsmanship and brand values.


The Rise of the Online Shopper

The Internet, over the past decade, has become the most influential medium for customers. Moreover, these customers actively discuss various brands in social media circles and forums. In addition to this, there are a number of luxury brands that are being promoted by various third-party sources. So, luxury brands need to find a place for themselves in the online world if they have to stay relevant. A strong online presence for luxury brands will, undoubtedly, allow them to gain access to various customer groups; it also helps them become part of a world where new sources of revenue are constantly generated. However, the very essence of the Internet is pervasiveness, making it very difficult for a luxury brand to carve a niche space for itself. Moreover, the Internet is, in general, full of counterfeit products, fake imitations and more – where a single search for a luxury brand will throw up a number of look-alike products and fake rip-offs. Luxury brands have to offer premium products at premium prices, restrict distribution, translate brand aesthetics into their website, create online-offline interactions, bring a human face to their online persona and invite customer participation.


Dynamic Market Approach

The market is ever-changing, and to cater to this dynamic nature of the market, luxury brands have to understand the unique interplay of various market characteristics. With cultural, financial, political, media and communication elements being distinctly different from one market to the other, luxury brands have to consider a different dynamic market approach. They have to know whether they can take a country or market model and use it as a standard of approach for other countries or markets. Typically, luxury brands do not have the luxury of replicating market strategies – they have to adapt different strategies while targeting different markets.


Understanding Today's Luxury Customer

Traditionally, luxury products were designed and created only for the select few; the elite; the affluent. However, luxury, today, is not reserved for the rich and the elite – a new era has dawned where wealth and income are not the only criteria for defining class. The buying motive of consumers has undergone a drastic change during the past 20 years, with consumers buying luxury goods not only to satisfy a need to impress others but also to satisfy one’s self-identity.

The concept of offering discounts to customers has, in many ways, discredited the brand image and value of many companies. Studies have shown that discounted pricing may adversely affect a luxury brand, as the sheen of class and grandeur is lost. However, with the changing global scenario, most luxury brands have to provide discounts to their customers in order to maintain the market share and presence.

The greatest challenges for luxury brands will be to stay true to its identity while adapting to new realities. What challenges are you facing? Luxury Blogger Spotlight

Blogger Spotlight: Doron Levy Of

Behind every great luxury blog, you will find a great story. Luxury bloggers are real people, not machines. To successfully work with them, we recommend you get to know them a little better. Through our years at LuxeInACity, we have talked, collaborated and exchanged ideas with dozens if not hundreds of great bloggers from around the world.

Since bloggers rarely talk about themselves - they tend to talk about everyone else instead - we hope to showcase their skills, expertise and opinions in this blog series.

Get to know these luxury bloggers, learn from them and hopefully you will find an innovative way to collaborate with them.


Today's blogger is Doron Levy of, a luxury lifestyle blog that aims to curate the best in luxury and affluence. Doron lives in Toronto, a great Canadian city that never sleeps. If you took the time to chat with Doron on the phone, you would soon realize how passionate he is about his blog. As you will read below, Doron stumbled into the world of luxury blogging after working in retail for several years. Since then, his blog has been a great source of information for those who love luxury. Read below to get to know the man behind


Every blogger has a different story on how they got started blogging. What is yours?


I worked my way through the retail industry for most of my life and I was always impressed at the resilience of the luxury category. It is truly a category where the normal rules of economics don’t apply. The more exclusive an item is the more desirable it becomes. I found the whole category interesting and decided to feature content and write original work about luxury. And as an admitted gear head and watch lover, covering and writing about these subjects is truly enjoyable


Like most successful bloggers, you probably receive hundreds of emails per month from luxury brands who want you to share their story. What makes you decide to work with a brand over the other?


I look at several factors. The product itself is important. How it’s made, price and reputation all come into play. The biggest factors though are the company and brand itself. I like to learn about the history and roots of any brand that approaches us. True luxury is not just adding jewelry to an iPhone. There has to be a degree of exclusivity and equity when considering a brand to feature.


What is your take on press releases? Do you like receiving them or do you simply discard them?


We use press-releases as they come depending on the subject and time of year. Most recently was the Geneva Motor Show; so you would see a high frequency of PR coming from manufacturers during the show. While I find most press releases sterile and too wordsy, I like to add my own introduction and analysis to any press release we receive.






What would make you choose to work with a brand on a giveaway campaign on your site?


It depends on the brand, the giveaway and how they are promoting it. Ultra high net worth individuals don’t really subscribe to giveaways or contests; so we like to focus on the information they want.


If a brand wants to reach you, what channel should they use? Do you prefer email, social media or another means of communication?


I believe in being fully connected and staying connected as we work with people all over the world. We can be reached via email, Facebook, DM through twitter, SMS, Skype and will even answer smoke signals. I have to admit, I do miss having phone calls… (I have to agree).


In your mind, what makes a successful blogger outreach program? Is it the incentive, the brand itself or the relationship you already have with the brand?


It’s all about the relationship. While the incentive may be a nice perk, a solid partnership is way more valuable to me.


Of all the social media channels you engage on, which one do you prefer and why?


I really like the rapidity of twitter and the ability to reach a large group of interested people in short amount time but it can be a day to day situation where one channel is more popular than the other. During the Sochi Olympics, twitter was really the place to be but when engaging with content that is of a more creative nature, Facebook and LinkedIn become my preferred outlets.


Which social media channels does your audience interact with the most?


A lot of incoming traffic comes from Facebook and LinkedIn. The groups at LinkedIn are an invaluable source of readers as you are engaging people specifically looking for your content (as long as you post work in the appropriate groups).


In your opinion, what does it take to become successful on social media?


Someone who is adaptable and is not afraid of change! All social media outlets now have a bottom line to worry about so what was doable in social media 2 months ago will not work today. Your content will be mixed in with paid ads and sponsored articles. The key to success is constantly engaging your followers and friends with content they are interested in. You want to stand out in feeds and not be washed out by an onslaught of paid ads.


Do you monitor your Klout score on a daily/weekly basis? Do you think this social ranking is of any real value to luxury brands?


I do not but I am on their email list so I am updated when my score changes. There have been some big debates about Klout and its worthiness. My Klout score has remained constant for the last year but I have seen my hits, twitter and Facebook engagement all increasing so I’m not 100 percent sure what metrics they go by. We don’t include Klout in any of our marketing materials.



Doron Levy of Luxury Blog


What is the main reason you blog on a daily basis? Is it for pleasure, for business or for both?


I can fully admit that it’s both. I enjoy the writing and covering the luxury category and it does provide a means to connect with organizations and individuals who would be interested in our services.


Do you sometime receive compensation from luxury brands, whether it’s in the form of cash or incentives, to blog about them?

Third party marketers will offer a small payment for a link in a sponsored post. Yes, we do offer sponsored posts just like all the big guys do. (We agree - it's common practice. RG)


Apart from blogging, do you offer additional services to luxury brands who choose to work with you?

Yes, through our unit, we offer marketing, social media campaign setup, web design and our favorite, media creation.


Do you think luxury brands should understand that blogging is also a business for some?

I think luxury brands are starting to understand that point as blogging is becoming a vital part of their marketing campaigns. Luxury brands benefit from the ‘bespoke’ attention that bloggers can give them. Detailed reviews, real world experiences and commentary makes for more engagement with potential clients.


Do you manage more than one blog? If so, which ones?

Yes, we currently have 4 in our portfolio,,, and


Have you rub shoulders with the rich and famous through your work as a luxury blogger?

Through our affiliation with Seven Star Global Luxury Awards, we recently landed exclusive interviews with prominent Greek and Turkish media personalities.


If you had to mentor a new blogger, what is your go-to advice to become successful?

Use a CMS that is easy to use and update such as Wordpress and maintain fresh content daily. That is the tried and true method in building an audience and SEO presence.


Don't hesitate to reach out to Doron Levy on Facebook, Twitter, Flickr, by email (info {@} or if you want an introduction, reach out to us.

SEO Link Building for Luxury Brands

How Link Building Is All About Relationships

It is commonly accepted that social media is all about building relationships with those who share similar interests. The success of your own content, whether it's a blog post, a YouTube video or a simple tweet, lies in the hands of those who share it with their fans. You might create great content but if no one pays attention to your updates, you will inevitably be at a loss.

To achieve social success, you must therefore nurture relationships with fans and other key influencers in your industry. This takes time, commitment, and above all, an honest approach.

The same is true for link building. Once overflowing with shady practices, SEO is now all about relationships and a more genuine and authentic blogger outreach program. You might be able to purchase a list of industry bloggers and send them your weekly press release, but you will quickly notice that the results yielded are lower than expected. Don't blame the bloggers, blame your approach.

Bloggers are individuals, not machines. They pride themselves on curating and creating the very best content and they tend to dedicate a lot of time to their fans. Bloggers, like social media influencers, ultimately need to know, and love, you to be willing to work with you.

So, how do you make them fall in love with you or your brand? Start by being real. Don't expect anything from them; don't push them with countless emails; and don't annoy them on social media. Reach out to them on a one-on-one basis; tell them why you have chosen them for your blogger outreach program; and be honest on whether or not you can offer them something in return. While some bloggers will only accept payments in exchange of sponsored posts, most will be more than happy to help out if asked politely.

If you need more advice on how to successfully reach a luxury blogger, read our recent post, or to plan your next blogger outreach program, reach out to us.

Influencer Marketing - Luxury Blogger Outreach Program

What Happens When Everyone Is An Influencer

The social web has created a new surge of influencers. Think of bloggers who are read by thousands of visitors each month; Twitter stars who have gathered fans in the millions; or YouTube sensations who seem to produce one viral video after the next. It seems that anyone can become an influencer with the right combination of skills.

Since influencers have a broad audience of loyal fans, sometimes surpassing even the most coveted brands in the industry, they often get approached by brands who seek new marketing opportunities. The exchange of service is often beneficial for both parties: the influencer usually gets compensated, either in the form of a complimentary gift or money, while the brand gets its message in front of a niche audience.  But what happens to the consumer - the third party involved in this transaction? Will this influencer-brand synergy manipulate his/her purchasing decision?

Before someone makes a purchase, they will be "influenced" by dozens of individuals. Some recommendations will carry a lot of weight, while others will simply be pushed to the side. The importance of each recommendation depends on the nature of the relationship between the influencer, the brand and the consumer. If the influencer is a digital star, then the message will not have the same impact as if it comes from a family member or a close friend.

In Influence Marketing by Danny Brown, I recently stumbled on a great table that shows the different degrees of relationships within a person's list of personal contacts. Brown defines the nature of each relationships - Inner Circle, Social Friends, Acquaintance, Followers - Colleagues, and Followers - Competitive - then goes to explain how this new landscape creates a multitude of pathways through which brands must try to deliver their messages. Everyone is an influencer, however, not everyone has the same influential pull.


Tier Categorization Description Relationship Activity
First Inner Circle Personal contacts such as family, neighbors, friends and coworkers with whom you share frequent and personal communication both online and face-to-face. In-person and digital gathering such as meals, social engagements, telephone and video calls, text messaging, etc.
Second Social Friends Contacts with frequent personal communications but where the relationship began and, for the most part, remains online. Digital gathering such as social networking, video chats, etc.
Third Acquaintances Contacts formed or solidified through a one-time or infrequent meeting such as at a trade show or past friendships such as old high school contacts reconnected solely through social channels. Infrequent contact via social networks, mainly focused on business relationships.
Fourth Followers - Colleagues Impersonal relationships where no face-to-face connections were made; where communication is limited to the consumption of digital content. Two-way, impersonal activity including reading each other's blogs, following each other on Twitter, etc.
Fifth Followers - Competitive Impersonal relationships where no face-to-face connections were made; where communication is limited to the consumption of digital content. One-way, impersonal activity where one monitors the actions of another such as a competitive analysis.

Reference: Influencer Marketing by Danny Brown

When creating an influencer outreach program, brands must try to understand the various types of influencers and the nature of their relationship with the buyer. Should they focus their attention on the blogger who can get thousands of fans to share his post on Twitter and Facebook; the women who leads the local group of mommy bloggers; and/or the Twitter star who can get the message go viral. The landscape is often blurry and requires time to understand.

If you plan on creating an influencer outreach program or if want to know more about how to reach a luxury influencer, read our recent post, or simply reach out to us.