When managing a luxury brand, it is necessary to forget a fair number of laws of traditional marketing, which may very well apply to premium brands and even to trading up, but not to luxury.
In this article, I develop 21 management principles, which I call anti-laws of marketing peculiar to luxury.
What is Luxury and how do Luxury brands work?
Key trends in the Luxury marketplace
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5 luxury market trends in Southeast Asia (July 2013)Publicis Beijing
Publicly available knowledge on the luxury market is typically global in nature, or focuses only on the big markets in Asia like China. However, Southeast Asia holds opportunity. This deck has been prepared specifically to provide some insight to mid-range luxury brands looking to enter the Southeast Asian markets. PLEASE CREDIT AUTHOR AND BBDO SINGAPORE IF YOU WISH TO REUSE THE INFORMATION IN THIS DECK. Thanks!
Luxury Workshop: The Psychology of Luxury ShoppingCrobox
From Crobox's behavioral psychologists, learn about the behavioral motives and psychological drivers behind luxury consumption. Then, we give you a workshop on how to market your luxury products better.
Cultivating Cult Brand Culture: How Top Brands Attract & Retain Top TalentCult Collective
Today's marketers must play a greater role in attracting and retaining talent than they currently play. Cultivating a cult brand culture is far more important than most of the activities that marketers spend time or money on. No amount of advertising can build brand affinity if you have a dysfunctional culture or disengaged workforce.
What is Luxury and how do Luxury brands work?
Key trends in the Luxury marketplace
Know vs. Show – the Luxury consumer
The Recession and the Luxury consumer
5 luxury market trends in Southeast Asia (July 2013)Publicis Beijing
Publicly available knowledge on the luxury market is typically global in nature, or focuses only on the big markets in Asia like China. However, Southeast Asia holds opportunity. This deck has been prepared specifically to provide some insight to mid-range luxury brands looking to enter the Southeast Asian markets. PLEASE CREDIT AUTHOR AND BBDO SINGAPORE IF YOU WISH TO REUSE THE INFORMATION IN THIS DECK. Thanks!
Luxury Workshop: The Psychology of Luxury ShoppingCrobox
From Crobox's behavioral psychologists, learn about the behavioral motives and psychological drivers behind luxury consumption. Then, we give you a workshop on how to market your luxury products better.
Cultivating Cult Brand Culture: How Top Brands Attract & Retain Top TalentCult Collective
Today's marketers must play a greater role in attracting and retaining talent than they currently play. Cultivating a cult brand culture is far more important than most of the activities that marketers spend time or money on. No amount of advertising can build brand affinity if you have a dysfunctional culture or disengaged workforce.
Exploring the role of cultural branding strategy in brand buildingNaveen Iftekharuddin
Dissertation for my MSc in Advanced Marketing Management from Lancaster University. I showed my dedication in brand management, planning and communications by choosing a related for my dissertation. The research gave me the opportunity to have a new and fresh approach to the idea of brand building, planning and brand communications. Moreover, it was a in-depth ethnographic research and has given me key skills needed to act like "fly on the wall" during the research process
5 Factors for Engaging and Building Brand Loyalty With Millennial ConsumersCult Collective
Spark a genuine dialogue with Millennials. By discovering what matters to them most (and why), you’ll be one step closer to earning true, long-term customer buy-in from this elusive demographic.
Creating Customer Value with Derek HendrikzDerek Hendrikz
Creating Customer Value through process effectiveness is presented by Derek Hendrikz as part of his Customer Relationship Management, CRM, series. It covers areas of customer service, satisfaction and service excellence in delivery. www.derekhendrikz.com
Social Media Brand Strategy: The Four Districts ApproachDiamond Marketing
Break the rules and your brand will suffer...
Social media is just over 10 years old yet in the past decade it has catapulted artists from the fringe to fame, re-invented journalism, toppled governments, and has become the biggest disruption to the media paradigm since TV was invented. Those who do it right, win big – but so many brands continue to miss out on the social media opportunity. Why?
It is time to see social media for what it is: distinct cultural districts with their own rules that determine what users and content become viral, and which are ignored.
This guide provides the key rules to follow for each district.
The old brand model, which advocated the creation of an external brand image to influence consumers, is a thing of the past. We think it’s time to do things differently. So, we wrote this whitepaper drawing upon the anthropological concept of culture to introduce a new model for brands. We argue that its time for true values to replace the external brand image. In other words, looking good is no longer enough. To compete in today’s fast paced landscape, brands must be better from the inside out. We call this new model Brand Culture—and we think it has the potential to transform companies into truly amazing brands.
College: Boston University
Class: Principles and Practices in Advertising
Group project to develop a campaign for Harry's Razor in efforts to build brand awareness to target audience.
Brand Leadership - 5 Global Cases from the best brands By Dan Pankrazguest7e5b6a
5 Global Case studies showing how the best brands create leadership in their categories. A youth marketing slant with some examples of brands who have gotten it wrong....and then recovered
Exploring the role of cultural branding strategy in brand buildingNaveen Iftekharuddin
Dissertation for my MSc in Advanced Marketing Management from Lancaster University. I showed my dedication in brand management, planning and communications by choosing a related for my dissertation. The research gave me the opportunity to have a new and fresh approach to the idea of brand building, planning and brand communications. Moreover, it was a in-depth ethnographic research and has given me key skills needed to act like "fly on the wall" during the research process
5 Factors for Engaging and Building Brand Loyalty With Millennial ConsumersCult Collective
Spark a genuine dialogue with Millennials. By discovering what matters to them most (and why), you’ll be one step closer to earning true, long-term customer buy-in from this elusive demographic.
Creating Customer Value with Derek HendrikzDerek Hendrikz
Creating Customer Value through process effectiveness is presented by Derek Hendrikz as part of his Customer Relationship Management, CRM, series. It covers areas of customer service, satisfaction and service excellence in delivery. www.derekhendrikz.com
Social Media Brand Strategy: The Four Districts ApproachDiamond Marketing
Break the rules and your brand will suffer...
Social media is just over 10 years old yet in the past decade it has catapulted artists from the fringe to fame, re-invented journalism, toppled governments, and has become the biggest disruption to the media paradigm since TV was invented. Those who do it right, win big – but so many brands continue to miss out on the social media opportunity. Why?
It is time to see social media for what it is: distinct cultural districts with their own rules that determine what users and content become viral, and which are ignored.
This guide provides the key rules to follow for each district.
The old brand model, which advocated the creation of an external brand image to influence consumers, is a thing of the past. We think it’s time to do things differently. So, we wrote this whitepaper drawing upon the anthropological concept of culture to introduce a new model for brands. We argue that its time for true values to replace the external brand image. In other words, looking good is no longer enough. To compete in today’s fast paced landscape, brands must be better from the inside out. We call this new model Brand Culture—and we think it has the potential to transform companies into truly amazing brands.
College: Boston University
Class: Principles and Practices in Advertising
Group project to develop a campaign for Harry's Razor in efforts to build brand awareness to target audience.
Brand Leadership - 5 Global Cases from the best brands By Dan Pankrazguest7e5b6a
5 Global Case studies showing how the best brands create leadership in their categories. A youth marketing slant with some examples of brands who have gotten it wrong....and then recovered
Talk presented at the LuxePack New York show, May 2016. It looks at how the oft-quoted “Lipstick Effect” is only half true in today’s new luxury consumer market, as the status and prestige motivation for buying luxury brands is giving way to new drives and desires to buy luxury goods, most especially beauty.
Today’s affluent consumers are driven my new needs and desires to trade up to luxury brands, desires like:
Luxury for Me (Anti-status): Luxury isn’t about you, and what you think, but about me and who I am
Luxury of Discovery (Spread the word): Thrill of discovery anchors brand’s most powerful marketing tool — Word-of-mouth
Luxury of Simplicity (Simple elegance): It’s the KISS principle — Keep It Simple Stupid! – is valued. Embrace the concept of simple elegance.
This white paper explores each of these new luxury drivers and profiles brands that are using each to connect with today’s most profitable customers — the affluent.
The message: Luxury is a mindset, not a brand or a price point.
Big Digital Umbrella's 12 do's and don'ts of luxury digital marketingJerome Pineau
Marketing and digital strategy for luxury brands has little in common with traditional marketing. Learn some of the key points to remembers with 12 do and don't tips of luxury digital marketing from your friends at Big Digital Umbrella, a marketing and digital strategy consulting firm focused on high-tech and luxury brand clients.
This is the marketing plan my team and I created for a student marketing competition to revitalize the cosmetics department. I chose this to showcase both my marketing knowledge, analysis, and my ability to write professionally and strategically. It\'s a group project, but I functioned as an editor for the entire thing. I had a very heavy hand in writing the strategies section and completely wrote the budget/financial analysis sections. I also did the concept mockup in the appendices.
KCC Consultancy is a London based consulting agency introducing niche European and American brands to the beauty and gift world of the U.S. and the UK.
When you think of a brand the first thing that probably comes to
mind is a brand on livestock. Branding of a product should be
viewed as the same thing. When you have a successful brand, it
sets your product apart from your competition. You want your
brand to be able to expand your customer base and increase
your market share. The larger your customer base and market
share the more powerful your brand will become.
There are many factors that go into making a brand successful and
there are even more that go into keeping you brand successful. By
learning the basic steps, you will be able to put your brand on the
best possible path to success. You will find that marketing and
branding go hand in hand. A good brand will help your marketing
and strong marketing will help build a strong brand. It is up to you to
do your homework to ensure that you make the right decisions to
help your company build a strong brand.
Your goal is to build a brand that is the recognized leader in a given
category. This makes the consumer want to be aligned with your
brand and will seek it out at the store. It will give them the satisfac-
vi Introduction
tion that they have made the correct decision for themselves and
their family when they purchase your brand.
With the explosion of the Internet, now more than ever, companies
have the chance to go global and increase their sales and profits. By
following the steps that are outlined here, you will have the informa-tion
that you need to make your brand successful and have the ability to go
global both on the Internet and with a brick and mortar store.
On a daily basis I hear Marketing buzz words bantered about and it becomes obvious people say them and don’t really even know what they mean. I think people use the sacred marketing words like relevant, equity or insights, because they figure no one will challenge them. Of course, everyone puts “strategic thinker” on their Linked In profile. The problem I see is that a generation of Brand Leaders have not been properly trained and it’s starting to show. For the past 20 years, companies have said “on the job” training is good enough. But now the lack of training is starting to show up. The mis-use of these words can be linked to the lack of understanding of the fundamentals of marketing.
Monthly Social Media News Update May 2024Andy Lambert
TL;DR. These are the three themes that stood out to us over the course of last month.
1️⃣ Social media is becoming increasingly significant for brand discovery. Marketers are now understanding the impact of social and budgets are shifting accordingly.
2️⃣ Instagram’s new algorithm and latest guidance will help us maintain organic growth. Instagram continues to evolve, but Reels remains the most crucial tool for growth.
3️⃣ Collaboration will help us unlock growth. Who we work with will define how fast we grow. Meta continues to evolve their Creator Marketplace and now TikTok are beginning to push ‘collabs’ more too.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
Videos are more engaging, more memorable, and more popular than any other type of content out there. That’s why it’s estimated that 82% of consumer traffic will come from videos by 2025.
And with videos evolving from landscape to portrait and experts promoting shorter clips, one thing remains constant – our brains LOVE videos.
So is there science behind what makes people absolutely irresistible on camera?
The answer: definitely yes.
In this jam-packed session with Stephanie Garcia, you’ll get your hands on a steal-worthy guide that uncovers the art and science to being irresistible on camera. From body language to words that convert, she’ll show you how to captivate on command so that viewers are excited and ready to take action.
It's another new era of digital and marketers are faced with making big bets on their digital strategy. If you are looking at modernizing your tech stack to support your digital evolution, there are a few can't miss (often overlooked) areas that should be part of every conversation. We'll cover setting your vision, avoiding siloes, adding a democratized approach to data strategy, localization, creating critical governance requirements and more. Attendees will walk away with actions they can take into initiatives they are running today and consider for the future.
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.\
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
For too many years marketing and sales have operated in silos...while in some forward thinking companies, the two organizations work together to drive new opportunity development and revenue. This session will explore the lessons learned in that beautiful dance that can occur when marketing and sales work together...to drive new opportunity development, account expansion and customer satisfaction.
No, this is not a conversation about MQLs and SQLs. Instead we will focus on a framework that allows the two organizations to drive company success together.
The Secret to Engaging Modern Consumers: Journey Mapping and Personalization
In today's digital landscape, understanding the customer's journey and delivering personalized experiences are paramount. This masterclass delves into the art of consumer journey mapping, a powerful technique that visualizes the entire customer experience across touchpoints. Attendees will learn how to create detailed journey maps, identify pain points, and uncover opportunities for optimization. The presentation also explores personalization strategies that leverage data and technology to tailor content, products, and experiences to individual customers. From real-time personalization to predictive analytics, attendees will gain insights into cutting-edge approaches that drive engagement and loyalty.
Key Takeaways:
Current consumer landscape; Steps to mapping an effective consumer journey; Understanding the value of personalization; Integrating mapping and personalization for success; Brands that are getting It right!; Best Practices; Future Trends
How to Run Landing Page Tests On and Off Paid Social PlatformsVWO
Join us for an exclusive webinar featuring Mariate, Alexandra and Nima where we will unveil a comprehensive blueprint for crafting a successful paid media strategy focused on landing page testing.With escalating costs in paid advertising, understanding how to maximize each visitor’s experience is crucial for retention and conversion.
This session will dive into the methodologies for executing and analyzing landing page tests within paid social channels, offering a blend of theoretical knowledge and practical insights.
The Pearmill team will guide you through the nuances of setting up and managing landing page experiments on paid social platforms. You will learn about the critical rules to follow, the structure of effective tests, optimal conversion duration and budget allocation.
The session will also cover data analysis techniques and criteria for graduating landing pages.
In the second part of the webinar, Pearmill will explore the use of A/B testing platforms. Discover common pitfalls to avoid in A/B testing and gain insights into analyzing A/B tests results effectively.
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User JourneysSearch Engine Journal
Digital platforms are constantly multiplying, and with that, user engagement is becoming more intricate and fragmented.
So how do you effectively navigate distributing and tailoring your content across these various touchpoints?
Watch this webinar as we dive into the evolving landscape of content strategy tailored for today's fragmented user journeys. Understanding how to deliver your content to your users is more crucial than ever, and we’ll provide actionable tips for navigating these intricate challenges.
You’ll learn:
- How today’s users engage with content across various channels and devices.
- The latest methodologies for identifying and addressing content gaps to keep your content strategy proactive and relevant.
- What digital shelf space is and how your content strategy needs to pivot.
With Wayne Cichanski, we’ll explore innovative strategies to map out and meet the diverse needs of your audience, ensuring every piece of content resonates and connects, regardless of where or how it is consumed.
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
Key Takeaways:
1. Real content is king
2. Find ways to show EEAT
3. Repurpose across all platforms
First Things First: Building and Effective Marketing Strategy
Too many companies (and marketers) jump straight into activation planning without formalizing a marketing strategy. It may seem tedious, but analyzing the mindset of your targeted audiences and identifying the messaging points most likely to resonate with them is time well spent. That process is also a great opportunity for marketers to collaborate with sales leaders and account managers on a galvanized go-to-market approach. I’ll walk you through the methods and tools we use with our clients to ensure campaign success.
Key Takeaways:
-Recognize the critical role of strategy in marketing
-Learn our approach for building an actionable, effective marketing strategy
-Receive templates and guides for developing a marketing strategy
The Forgotten Secret Weapon of Digital Marketing: Email
Digital marketing is a rapidly changing, ever evolving industry--Influencers, Threads, X, AI, etc. But one of the most effective digital marketing tools is also one of the oldest: Email. Find out from two Houston-based digital experts how to maximize your results from email.
Key Takeaways:
Email has the best ROI of any digital tactic
It can be used at any stage of the customer journey
It is increasingly important as the cookie-less future gets closer and closer
Coca Cola Branding Strategy and strategic marketing plan
Breaking the rules of Traditional Marketing
1. THINK DIFFERENT
BREAKING THE RULES OF TRADITIONAL MARKETING
Introduction
If you can´t solve a problem, it´s because you´re playing by the rules.
When managing a luxury brand, it is necessary to forget a fair number of laws of traditional
marketing, which may very well apply to premium brands and even to trading up, but not to
luxury.
In this article, I develop 21 management principles, which I call anti-laws of marketing peculiar
to luxury.
Let´s start!
Verónica Cochón Vazquez
12-06-2017
1. . luxury is not comparative
In Consumer Marketing, at the heart of every brand strategy you will find the concept of
positioning, of the unique selling proposition (USP) and unique and convincing competitive
advantage. When it comes to luxury, being unique is what counts, not any comparison with a
competitor. L
2. It´s identity that gives a brand that particularly powerful feeling of uniqueness, a timelessness,
and the necessary authenticity that helps give an impression of permanence.
2. Excellence as the primary prerequisite of luxury
The aim of an upper-premium Brand is to deliver a perfect product, to relentlessly pursue
perfection. That´s what I call obsesion for details.
In the world of luxury, the models and the products must have Character and Personality. Both
of them deliver to a luxury product.
3. Do not pander to your customers whises
This does not mean the luxury Brand should not care about its clients nor listen to them.
However, it should do nothing that threatens its identity and character.
A luxury brand has to mantain its authenticity, and therefore its attraction, its mystique and its
spark over time.
The luxury Brand, comes from the mind of its creator, driven by a long term visión. There are
two ways to go bankrupt: not listening to the client, but also listening to the client too much.
4. Keep out the idea of widen the penetration
When it comes to luxury, trying to make a brand more relevant is to dilute its value, because
not only does the brand lose some of its unique features but also its wider availability erodes
the dream potential among the elite, among leaders of opinion.
Brand growth is achieved by penetrating new countries, not new customer segments.
5. Do not try to widen the demand
When you are just a local luxury brand, going global is the way of growing in volumen without
brand through market saturation. Fort he luxury european
brands, the US market and then the Asian market, have created this opportunity of growth in
volumen without damaging the dream.
But when you are a global brand, you reach a limit. Either you stick to a luxury strategy you
stop growing in volumen and you increase your sales figures by raising the average price of
your products or you leave the luxury strategy to follow either a premium of a fashion strategy.
6. Dominate the Client
Luxury brands are at the same time a reward and a token of gradual elevation. To preserve
this status, the brand must always dominate its client. This is not the same as saying don´t
respect them: parents dominate their children, but that does not mean that they don´t respect
them. As a result, a certain distance is preserved that is not supercilious or aloof, but
nevertheless mantains an aura of mystery.
3. 7. Make it difficult for clients to buy
The luxury Brand is something that has to be earned. The greater the inaccessibility, the
greater the desire.
Luxury has to know how to set up the necessary obstacles to the straining of desire, and keep
them in place. People do eventually get to enjoy the luxury after passing through a series of
obstacles (e.g. the perido required for it manufacture)
8. Protect clients from non-clients, the big from the small
In practice that means that the brand must be segregationist and forget all society´s
democratic principles. In stores, for example, it is necessary subtly to introduce a measure of
social segregation: ground floor for some, first floor for others. Armani´s many sub-brands
have separate distribution. Advertising and promotion is for all, but public relations are ultra-
carefully targeted, like the CRM for the privileged (personal invitations to meet the designer,
the Brand perfume nose or the head wine buyer).
9. The role of advertising is not to sell
In traditional marketing, after each comercial one looks at sales figures to see whether the ad
really works. In luxury, the dream comes first.
Advertising feeds on a sustained myth, mystery, magic, highly people-centred but private
shows, product placement and art, as we saw above, an extremely important element for any
luxury brand.
The dream must always be recreated and sustained.
10. Gain prestigious on those people you are not targeting
In luxury marketing, it is essential to spread brand awareness beyond the target group, but in
a very positive way - Brand awareness is not enough in luxury: it has to be prestigious.
One of the best ways of getting this result is by having famous people using your product in
prestigious situations - as Aston Martin in James Bond movies: for sure almost none of those
attending the movie will ever buy such a car. But they will now recognize it and hold in respect
its owners.
Nowadays it is copied by traditional marketing with the strategy of product placement, but
there is a huge difference: the usual Brand pays for it, the luxury brand not.
11. The presumed price should always seem higher than the actual price
It is a telling fact that advertisements for luxury products often show only the product, without
any blurb, and certainly no prices. In the luxury world price is something not to be mentioned.
As a general rule, the imagined price should be higher than it really is. It´s the opposite in
traditional marketing.
4. 12. Luxury sets the price, price does not set luxury
Money is not a good way of categorizing objects or of stratifying them unless it has been
culturally coded. In luxury, you first come up with a product, then you see at what price you
can sell it.
There is one key consequence for selling: sales staff in a store help people understand, share
the mystery, the spirit of places and objects, and the time invested in each item - which
explains the price. Customers will be free to buy later.
13. Raise your prices as time goes on in order to increase demand
In the standard market model, when the price falls, demand rises. With luxury, the relationship
es reverse.
To live in luxury you have to be above others, not be reasonable, in both senses of the word.
A reasonable price is a price that appeals to reason, and therefore to comparison. Now,
recalling anti-law 1, luxury is superlative, not comparative. By increasing prices you lose the
bad customers, but now you suddenly become dazzlingly attractive to people who would
previously not have given you a second glance.
14. Keep raising the average price of the product range
In traditional marketing, you launch a product at a skimming price, then when competition
comes onto the scene, you drop the price. In luxury it is precisely the opposite. A luxury brand
must always be seen to be restoring the gap, restratifying, and as such it is acting as a visible
agent of meritocracy.
Its growth does not rely on running after a less well-heeled clientele but on taking advantage
of the global economic growth that is creating thousands of new rich and very rich people
throughout the world. That is why the average Pprice needs to keep going up while of
course at the same time increasing the value element of the product or service.
15. Do not sell
In luxury, not trying too hard to sell is a fundamental principle in relationships with customers.
You tell customers the story of the product, the facts, but you don´t pressure them into making
a purchase there and then.
When it comes to luxury, the best way of reaching the very well-off is to let them come to
you. Fast moving consumer goods brands hunt for consumers. For luxury brands, it is just the
reverse: consumers are attracted.
16. Keep stars out of your advertising
Using stars to promote luxury products is extremely dangerous. A luxury brand is courted by
the stars, in the same way as those stars are courted by journalists and paparazzi. The luxury
brand must respect them, but it also has to dominate them. Even the most famous ones.
Calling on the services of a star is to admit that the brand needs some of this star´s status just
to survive, and admitting that it has none of its own.
5. 17. Cultivate closeness to the arts for initiates
The luxury brand is a promoter of taste, like art. But luxury is not a follower: it is creative, it is
bold. That is why it is best for luxury to remain close to the unpopular arts or rather the non-
popular arts those that are emerging. In this way you will be developing new trends, being
innovative.
18. Do not relocate your factories
Reducing cost prices is vital in the mass consumer markets and in fashion and this often means
relocating factories. Luxury management does not apply this strategy. When people buy a
luxury item, they are buying a product steeped in a culture or in a country. Having local roots
increases the perceived value of the luxury ítem.
Delocalization may be necessary in only one situation: when it is to access to a rare
craftsmanship. But the Brand must be transparent.
Two other reasons are sometimes evocated for companies wanting to enter a new market,
which is protected: the first is alleviating taxes. The second reason is the desire to access the
elites of the country.
So those two reasons, so often mentioned, are not good one. The Brand is still prestige, but
no longer luxury.
19. Do no test
Luxury companies do not test among consumers. If you test you are a mass prestige company.
Louis Vuitton, Chanel or Hermès never test.
Luxury is a taste educator. It builds the classics of tomorrow not the hits of today, soon
forgotten. To do so, one cannot rely on today´s preferences. Luxury´s avant garde status is
reinforced by the fact that its messages are mysterious, not easily grasped.
However, it is legitimate for a luxury Brand to evaluate new products with a selection of
existing good customers of the brand, and specially on the shop floor, where a real face to
face discussion is posible. Not only is the opinion of these brand-lovers good to collect, as
they share the dream of the b
enhancing their brand loyalty.
20. Do not look for consensus
This law is a consequence of the previous one. Testing a product may be not aproved by the
majority of the target and just a minority thinks in a different way. But in luxury, this rule
doesn´t works. This minority may represent the audience of your product.
21. Just sell marginally on the internet
There, the distinction between luxury, fashion and premium strategy of prestige brands
operating on the luxury market is crucial. Internet sales are extremely well adapted to fashion
and premium, but not to luxury. Luxury purchase needs time and effort to be deserved, true
price and no discounts on excessive prices, one to one relationships with the salespeople and
an Anonymous crowd. The internet can be used as a complementary service for existing
6. customer, or as initiation to the brand story or to the product for potential and selected new
customers. It cannot be used as a selling tool, except for products that are not part of the
luxury strategy of the Brand, such as fashion line or entry products.