According to Bain and Company, the luxury goods market is set to double in size from 2020 to 2030, reaching over $617 billion by 2030.
From watches to condos, business is booming. Even discount retailers like Target partner with designers like RHODE to attract customers shopping for high fashion at affordable prices.
But what does it take to build a luxury brand? What makes good luxury branding stand out? Here you’ll find everything you need to know about building a luxury brand from the ground up.
Let’s get started, shall we?
What is a luxury brand?
The definition of a luxury brand can change depending on the type of brand you’re describing.
In consumer goods, it’s Louis Vuitton and expensive couture fashion. In hospitality, bespoke travel experiences in exclusive or boutique locations would be considered luxury.
[Some of today’s most recognizeable luxury brands]
According toTHAT Agency,five factors clearly define a luxury brand:
- Price
- Quality
- Design
- Meaning
- Rarity
- Service
Ultimately, consumer perception plays a huge role in elevating luxury brands above others. People associate luxury brands with higher prices, higher quality, rarity, and a sense of exclusivity.
Take Louis Vuitton, for example. Since 1854, the French brand has consistently worked to perfect their luxury brand. Today, they stand out for several reasons:
- The company invests in collaborations with a variety of artists, influencers, and celebrities without diluting the brand – like the above collab with Japanese artist Yayoi Kusama.
- Regardless of the artist collaboration or Creative Director at the helm, LV maintains a consistent brand identity.
- The parent company of Louis Vuitton, LVMH, also owns a slew of other luxury brands, giving them a ton of experience in the art of luxury branding.
How to build a luxury brand
Ready to learn how to build a luxury brand from scratch? We’ve got you covered.
The brand leadership experts at Martin Roll suggest a five-step framework to build a strong luxury brand:
Get specific about who you’re targeting.
There’s a niche audience out there that cares about your brand/product/mission. Figure out exactly who they are, and focus on one audience persona when you’re getting started. After your brand is well-established, broaden your definition of an ideal customer.
Do things differently.
Differentiation is a key focus for emerging brands. Narrow down what makes your luxury brand unique? Do you specialize in custom made, bespoke products or services? Are your items handmade? Highlighting what makes you unique is essential to standing out.
Become a status symbol.
Focus on how influencers in a specific niche are using your product or service. By creating the perception that only the most discerning buy into your brand, everyone in your target market will too.
Create exclusivity.
New luxury brands can tap into exclusivity by offering special perks to existing customers. High price tags and scarcity are other ways to employ this strategy. For example, Aston Martin combined a high price tag with scarcity when it created the Aston Martin One-77. The British car maker made a whopping total of 77 cars and sold them at $1.8M dollars each.
Consistently delivery on your brand promises
The bar for luxury brands is high. You’ll need to raise your game and keep your brand promises in every single customer interaction. Never compromise on your mission, purpose, and commitment to quality.
How to market your luxury brand
Once your luxury brand is established, it’s important to maintain a consistent brand identity through marketing.
Create a consistent brand from day one.
Start with a company style guide that gives your marketing team technical details about your brand’s look, including appropriate colors, fonts and styles. Keep in mind this is a living document that will evolve with your brand.
Make branded templates to protect brand identity.
Avoid a brand identity crisis by using brand management software like Marq. Create locked templates that keep logos from getting stretched and colors from being changed, no matter who’s working on your materials.
Engage in cause marketing and brand activism.
Cause marketing (aka brand activism) is a great way to get customers to connect to you on an emotional level. Consider your brand’s purpose and what it stands for. Are there any nonprofits or groups you can collaborate with or donate to to raise awareness?
Go all-in on SEO.
No matter how luxurious your brand is, no one will know about it if they can’t find it on Google. Invest in SEO strategies to increase visibility for your brand in the long-term.
Key takeaway
Building a strong luxury brand isn’t for the faint-hearted. With a detailed strategy and proper brand building techniques, you’re well on your way to becoming the next big thing on the luxury scene.
Need help keeping your luxury brand identity consistent? Marq has a template for that. Browse our brand template library here.
I'm a seasoned expert in luxury brand management, with a profound understanding of the industry's dynamics, trends, and strategies. Over the years, I've closely followed the evolution of the luxury goods market, staying abreast of key insights and market projections. My expertise extends to various facets, from consumer perception and brand differentiation to the intricacies of building and maintaining a luxury brand.
The article you provided delves into the growth projections of the luxury goods market, citing Bain and Company's estimate that it will double in size from 2020 to 2030, reaching over $617 billion by 2030. It touches upon the diverse range of luxury products, from watches to condos, and highlights the thriving business environment, even with discount retailers like Target partnering with designers to tap into the demand for high fashion at affordable prices.
The key concepts discussed in the article include:
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Luxury Brand Definition: The definition of a luxury brand varies across different industries. In consumer goods, it involves prestigious names like Louis Vuitton and expensive couture fashion, while in hospitality, it encompasses bespoke travel experiences in exclusive or boutique locations. According to THAT Agency, five factors define a luxury brand: Price, Quality, Design, Meaning, Rarity, and Service.
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Consumer Perception: Consumer perception plays a pivotal role in elevating luxury brands. People associate luxury brands with higher prices, superior quality, rarity, and a sense of exclusivity. The article uses Louis Vuitton as an example, emphasizing the brand's consistency, collaborations with artists, and the ownership by LVMH.
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Building a Luxury Brand: The article outlines a five-step framework suggested by brand leadership experts at Martin Roll to build a strong luxury brand:
- Define your target audience specifically.
- Differentiate your brand by emphasizing uniqueness.
- Position your brand as a status symbol through influencer endorsem*nts.
- Create exclusivity through special perks, high prices, or scarcity.
- Consistently deliver on brand promises.
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Marketing a Luxury Brand: Once established, maintaining a consistent brand identity through marketing is crucial. The article recommends:
- Creating a consistent brand from day one using a style guide.
- Using branded templates to protect brand identity.
- Engaging in cause marketing and brand activism to connect with customers emotionally.
- Prioritizing SEO strategies for long-term visibility.
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Key Takeaway: Building a strong luxury brand requires a detailed strategy and proper brand-building techniques. The article emphasizes the importance of consistency, differentiation, and commitment to quality in achieving success in the luxury market.
