Luxury Brand Strategy - Elements to Consider in a New Luxury Economy
Designing an effective luxury brand strategy can be a challenge; the idea of a luxury commodity is a double standard, in short, you are aiming to persuade people to invest in something they don’t really need, and that takes creativity, curation of identity, and apt communication to make it possible. With an effective luxury brand strategy you have the chance of making history, think of those exclusive names that paved the way for the elite market.
Rolex, Hermes, Louis Vuitton, Ferrari – these are a few of the brands that have emerged as leaders in luxury, and it was their luxury brand stories and strategies that helped to make them successful. Familiarizing yourself with the major components of a traditional luxury brand strategy can help you to start weaving your tale, to inspire you to plant your own seeds, and to tend to your garden so that it can flourish and grow.
brand personality
Personality is the hallmark of a strong luxury brand strategy because in the luxury niche you are gifting experiences rather than selling a product. Consumers aren’t inspired by the dull and emotionless exchange of paper for a product, it is tasteless, it is boring, and it is an everyday chore that leaves them listless. They want to be wooed, they want to hear stories, they want myths and magic to come alive, and they want to hold something in their hands that actually means something. You can paint a picture with words, history, art, and imagination, something that lingers like an echo in the mind of the consumer.
Think about La Prairie and you will see hear the whisper of stardust and see the spa nestled beneath the snowcapped Swiss Alps, think about Chanel and you hear the throaty feminine allure, you see the black and white purr of Paris and the flash of pearls against a little black dress. These are the elements of a great luxury brand personality; these are the stories that make you famous.
To learn more about luxury branding or to perfect your own brand personality, consider sign-up for our Luxury Branding & The Art of Luxury Storytelling online course.
influencer & celebrity endorsement
Remember when Nicole Kidman spritzed herself with Chanel Number 5, when Natalie Portman captured the red carpet essence of Dior and when David Beckham sported Armani. We are a culture of celebrity and influencers and for luxury brands to seek recognition and inspire awe sometimes it helps to cast a figure of well-known prestige to help boost your brand. People look up to celebrities and influencers as these can be the physical embodiment of individuals living the good life.
Those who have succeeded in their chosen field inspire others to follow in their footsteps, encourage ambition, and the want for emulation. Having a celebrity or influencer endorse your product can work wonders for brand recognition and bringing a trustworthy glow to your name, something that is indeed worth its weight in gold.
To learn more about the importance of celebrity and influencer endorsement in a luxury brand strategy, sign-up for our Luxury Touchpoints & The Experience of Luxury online course.
public relations
Perfect PR can be as smooth and beautiful as a glassy lake on a summer’s day, a stone can cast a ripple but in moments everything returns to a picture of pure class, tranquility, and seamless beauty. There is no place in the world where PR matters most than in the world of luxury. The whole deciding, purchasing and owning experience should be a ritual and one that makes the consumer feel as though they are the only person in the world.
Successful luxury brands will go beyond that extra mile; they will take their elite loyal customers to the moon and back. From something as simple as offering champagne and petit fours in store to calling your top clients personally to offer them a first look at the seasonal new range before it hits the shelves, these are things to keep consumers feeling drawn into the inner circle, a place that encourages belief and sales.
To learn more about the importance of public relations consider taking our Luxury Touchpoints & The Experience of Luxury online course.
premium pricing
The mantra behind luxury pricing is always a twofold discussion; there is the real price and there is a perceived price. An exceptional luxury brand strategy will be the driving force that glides the real price out of sight and replaces it with something that exudes a higher premium value. After all what is a Rolex other than cogs and springs? What is a Louis Vuitton other than leather and seams? These items are thousands of dollars all because of their name, history, and heritage.
If you want to turn heads when it comes to your luxury brand you need to first lay the foundations, then you build up the hype, then you lay out the price –a price that speaks volumes, that doesn’t bow down to the need to shift a product and make sales, a price that clings to its worth and doesn’t let go.
To learn more about the importance of premium pricing in a luxury brand strategy, take our New Luxury & The Values Redefining Luxury online course.
uniqueness & scarcity
An arctic fox tumbling in the blushing pink snow, a scrap of parchment paper said to be the dead sea scrolls, an antique diadem dull in gold but with rubies that glitter the darkest blood red – these are all things of mystery, things that arouse our curiosity and things of rarity. Premier luxury branding follows in the footsteps of rarity and tiptoes far from the beaten track.
Elite consumers’ desire things that are scarce in this world, things that make them feel unique, things that are one of a kind. If you want your product to be worth its weight in gold then you need to build a mystery around it, cloak it in rarity, and let the whispers build to create a buzz.
To learn more about the importance of uniqueness & scarcity, sign up for our New Luxury & The Values Redefining Luxury online course.
selective distribution
Selective distribution can save a brand, remember when Burberry nearly went down to the pan thanks to fake design items being passed out left, right and center? The brand was in a dire state, stumbling on broken hind legs, but it was the ability to reign back and make the scare and selective again that saved it from titanic disaster. The underscored truth is; that if everyone has your brand, then no one will want it.
In effect luxury branding goes against the grain, usual sales techniques is to make everyone hold your product in their hand; luxury branding is about making everyone want to hold your product in their hand, but only letting an elite few have the pleasure.
To learn more about the importance of selective distribution in a luxury brand strategy, sign up for our New Luxury & The Values Redefining Luxury online course.
pedigree & heritage
The sooner you understand the significance of heritage, the sooner your brand will succeed. Pedigree and heritage are the divine forces that will separate you from thousands of other companies competing on the modern day market. Use legends to inspire myth, fables to fascinate, and storytelling to build a history behind your name takes you out of the plastic consumer world and makes your product something that lives and breathes.
Many elite consumers would rather own a tea chest that traveled on a camel’s back along the silk route, or a broach that once belonged to their great-grandmother than a brand new designer piece without a story attached to its threads. Building brand heritage means tying the story of something with the exclusive appeal. Myths feed a brand, they are the pure spring water to a parched flower, something that will make it bloom in its beauty.
To learn more about the importance of pedigree & heritage, enroll in our New Luxury & The Values Redefining Luxury online course.
performance
The previous factors are all elements of building an innovative and inspiring strategy to help elevate your brand, but that doesn’t mean that performance should be overlooked. From the speed of a Ferrari to the silent gliding hand of a Rolex, the alluring feel of soft leather between your fingers, or the touch of cashmere. It’s not just the myth of these products, but it is the magic too.
If you build something beautiful, create something that shines, and deliver something that stands up true to its name and surpasses expectation, then that is already half the battle won. The rest is using the threads of storytelling, trust, awareness, market understanding, and public relations to weave a tapestry of sheer wonder.
To learn more about the importance of performance in a luxury brand strategy, sign up for our New Luxury & The Values Redefining Luxury online course.
Naming a New Luxury Brand
One of the first things that comes to mind when creating a new luxury brand is "What's in the name?" Some brands opt to create a new word such as RueLaLa, use the founder's name such as Chanel or pick a combination of words that is SEO ready, such as Agence Luxury.
Since we are currently in the process of picking the name for a new luxury brand, we stumbled upon this great infographic and we simply wanted to share.
Naming a new luxury brand requires a lot of brainstorming sessions but one thing is for sure, it can not be taken lightly. The name is often the first impression, and often the last thing seen by a potential new client. If you want a few more heads to help you throughout your brainstorm sessions, give us a shout.
Defining The Characteristics of Luxury Products
Branding a luxury product and creating an effective marketing strategy for a luxury brand, involves a unique type of strategy; one that begins with an in-depth understanding of the characteristics of luxury products. The luxury goods industry is significant and not only has substantial market value, but is also an industry that has experienced significant growth over the last 10 years. Typically, there are four main categories within the luxury market: fashion, perfumes and cosmetics, wines and spirits and watches and jewelry; however, other categories, such as automobiles, have also recently found their way into this industry.
Characterizing Luxury Products
Defining what makes a product a ‘luxury product’ can sometimes be difficult, but there are a few key characteristics that can help give a brand or product a luxury label. When it comes to the physical, or functional, components of luxury products, typically these items or brands, can be identified by certain associations tied to the product’s characteristics. The average luxury brand is associated with three characteristics: high price tag, high quality and aesthetics. Typically, luxury brands or products will attempt to associate their brand name with these three associations and to show their target consumers that their brand encompasses these three features. The average luxury brand also has a clear brand identity and signature, places emphasis on product integrity, and offers their products at a premium price.
Criteria and Specifications of Luxury Brands
When it comes to defining a line or a brand as a ‘luxury brand,’ it needs to meet certain specifications. Typically a brand can only be defined as ‘luxury,’ within the market, if it evokes the three aforementioned associations within the mind of consumers. Most experts will also define a luxury brand as one that is not distorted by other external influences. This includes the marketing efforts of competitors. When a brand is truly a luxury brand, its image cannot be tarnished by others.
When a brand has emerged as a true luxury brand, it will be a true master of influencing the perceptions of consumers. For example, a Rolex watch will not suddenly stop being defined as a luxury watch brand, because of a marketing effort by Citizen, as Rolex is a true luxury brand. This is why no other luxury watch brands even attempt to discredit the quality of Rolex watches in their marketing campaigns.
Building The Luxury Brand Image
It is important to remember that not all luxury products are created equal, there are different levels of luxury brands, ranging from entry level to elite level niche brands. Different types or levels of luxury brand items need to be communicated in different manners. Typically, well crafted marketing communications are considered to be the key to building the image of a luxury brand. When it comes to creating communications for luxury brands, as opposed to standard or premium brands, different types of communications are needed. This typically includes celebrity endorsements, positive public relations and promotional events. By highlighting the main defining characteristics of the luxury brand during these promotional communications, a positive luxury image can be crafted and a strong brand identity can be promoted.
Ten Reasons To Brand Your Superyacht
Your superyacht is the apogee of perfection, but then again, so are all the others luxury yachts of this world. So much care is given to a superyacht's design, amenities and layout that, although different in style, they tend to be somewhat flawless. We know; we have worked on several superyachts as crew. Therefore, we understand yachting from the inside out.
If you seek to generate revenue from your superyacht by chartering it a few times a year, you might consider hiring a charter management company to do all the legwork. This is great but don't forget to brand your superyacht in order to stand out from the fleet.
Just for fun, we have looked up hundreds of superyachts, ranging from 120' to 220' and up, and noticed one alarming fact: less than 10% of charter yachts have websites! Also, it seems like the average superyacht with a website hasn't updated it in many years, making their digital presence old school. Most luxury yachts don't use social media, and most don't do any type of digital marketing at all.
So, in case we have picked your curiosity and you want to learn more about branding your superyacht, read on.
Branding is what takes your superyacht from a stand-alone boat and turns it into a living entity. It gives your superyacht its unique personality, a personality with a compelling story. Branding also gives your superyacht a meaning, unifies its existence and creates an overall effect on your desired market, the Ultra-High-Net-Worth-Individual.
As a general rule, your brand is what everyone else says it is. By giving it a storyline, you help everyone understand that your superyacht is a lot more than its jet skis and sun beds.
To help you understand the reasons you need to brand you luxury yacht, here is our Top Ten Reasons to Brand Your Superyacht.
1.Tell a Story: There’s a great story behind every superyacht.
A superyacht is nothing without its crew and captain. They live, breathe & love every inch of “their” superyacht. You must, therefore, tell the story of your yacht through the eyes of its crew.
2. Evoke Emotions: Build the dream by showcasing the lifestyle.
As the saying goes, pictures are worth a thousand words, but what can be said about a video? Wouldn’t it be worth a million words? Get creative with your branding and engage potential guests from every angle. Don't focus so much on your superyacht's characteristics, put the emphasis on the overall charter experience.
3. Promise Service: The crew is a superyacht’s finest asset.
It’s not all about the number of jet skis, sun beds, or staterooms. A superyacht is the apogee of luxury living yet little is known about its impeccable service. Showcase the crew and you showcase the yacht.
4. Tailor Bespoke Retreats: Every yacht offers a unique escape.
A superyacht is the ultimate gateway to the finest destinations. Create itineraries that inspire action and stand out from the rest. No one wants to be given a "time to wake up". Engage your fans with your luxury living expertise.
5. Create Preference: Build loyalty and keep them coming back.
Provide key emotional experiences that patrons will want to enjoy time and again. Don’t just drop them off at the airport and forget them, keep them engaged for years to come.
6. Express Luxury: Verbalize the distinct style of your superyacht.
Family, Adults, Business; American, European or Asian. Your crew can do it all, but what is your superyacht's personality. Verbalize the tangible differences to attract the desired clientele.
7. Delight the Senses: Your chef is your secret ingredient.
Make them salivate and drool over your chef’s tantalizing dishes. Pair it with a delightful wine to enhance the overall effect. Get your chef active on land to introduce the yacht. Win them over with your delectable offering.
8. Entice Summertime Fun: Show your water sport skills to get them excited.
Nothing beats a day playing in the sun with the deck crew. They are experts in water sports and able teachers. Let them showcase their talent to inspire adventure.
9. Offer Uniqueness: It’s all in the details.
Now, let’s talk about the yacht’s unique offering. Its beach BBQs, its Jacuzzi and pool, its steam room and gym. Its staterooms and dining options. Remember, it’s not all about facts and numbers. It’s all in the packaging.
10. Building an Identity: One Yacht, One identity. No mistake should be made.
Potential patrons are exposed to a hundred or more superyachts before making their final chartering choice. The question is, how will they recall yours?
If you are considering branding your superyacht, don't hesitate to reach out to us for a one-on-one consultation. In the meantime, check MY Starfire's website and social media channels to see our expertise first hand.
Please Luxury, Forget The Prominent Logos
I recently read this great article by Tara Loader Wilkinson, the editor-in-chief at Wealth-X, a definitive source of intelligence on the ultra wealthy with the world’s largest collection of curated research on UHNW individuals. In her article titled "No Logos, We're Chinese", Tara explains that taste has evolved amongst the wealthy Chinese community such as they no longer want to purchase items plastered by a brand’s corporate identity.
Jing Ulrich, managing director and vice president of Asia-Pacific at JP Morgan, and one of Asia’s most esteemed bankers states that he “even sees people removing the label from the inside of their jacket as a way of making it more anonymous.” After years of flaunting their wealth, the Chinese have finally started to shun logos. Luxury brands face yet another challenge: they must adapt to this new reality in order to secure their position as leaders in the world’s second most prominent market for expensive goods.
While reading this article, I started thinking… When have I ever purchased an item with a prominent logo for one of my clients while I worked as a personal assistant to the UHNW community? The answer is simple: Never.
When did I see a charter guests flaunt a new logo covered Louis Vuitton bag when I worked aboard superyachts? Once again: Never.
What I learned from my years working for billionaires, celebrities and UHNWI is that they normally prefer to be discreet with their personal clothing style even if they love their superyachts, private jets and sports cars.
I had a charter guest once, married to an American baseball team owner who told me: “I simply love shopping at JC Penney and Target.” I was shocked, but then quickly realized that they probably wouldn’t have become billionaires if they had spent their money carelessly. She also mentioned that she never used to spend thousands of dollars on a purse simply to show off a logo when she lived more modestly, so why should she start now. She still wore the clothing that expressed her individual chic, being thankful that she was now able to simply afford the best.
For the most part, the average UHNWI loves luxury goods. Goods that reflect their own personal style, not the style of the community. They understand the value of premium goods and are willing to pay first-class prices. From my personal experience, most prefer to buy from boutique brands, the brand that is still a “secret” to others. I used to spend my days trying to find hidden gems for my employers and still do for LuxeInACity, our digital showroom.
In the past, boutique brands were hard to find, having to wonder the streets in a quest to find master artisans. Nowadays, the internet has made it increasingly easier to find exemplary small businesses around the world. Boutique brands are popping up all over the internet making personalized luxury more accessible. One thing is for certain, boutique luxury brands always seemed to bring about smiles.
According to Nicola Ko, senior luxury analyst at London-based Ledbury research, the eastern culture, which is well-known for showcasing logo as a social status, seemed to be intrigued and are starting to adopt this trend: “The Chinese have skipped over the stage where they want to fit into society by having what everyone else has, to wanting to express their own individual style. They are increasingly buying from smaller, niche brands, and we see luxury giants moving towards a brand elevation strategy for long-term growth – less logos, less canvas, more leather and precious skins,”
Will major luxury brands change their ways and cater to the new style of luxury? Will they stop plastering their handbags and accessories with prominent logos? I sincerely hope so. I love both LuxeInACity and AgenceLuxury, but honestly, I would never want someone to pay for a bag with our logo on it. We believe in discretion, high-quality and customer satisfaction.
Which “style” of luxury do you prefer: the sophisticated, discreet, savvy boutique luxury brand or the logo dominated world of “luxury brands”? From my perspective, I have to say: Please Luxury, Forget the Prominent Logos!