Many people have a list of must-have luxury goods from brands like Gucci or Louis Vuitton whose customers we hope to someday become. These brands’ products have become status symbols, wherein possessing them automatically communicates something about you personally – whether that is about status, wealth or style.
With the average spending power shooting up in recent years, the popularity of luxury brands and products has also increased. This is especially prevalent with younger generations like millennials and Gen Z.
This has allowed the luxury brand management or marketing industry to come out of the shadows of a larger retail industry and establish its dominance. According to a report by Statista.com, the global value of the luxury industry was €283 billion in 2021.
Let’s dive deeper into the world of luxury marketing and explore the latest market trends within the industry.
What would you categorise as a luxury brand?
Not all expensive products or brands get to call themselves luxury brands. The tag is reserved for a few who can uphold a certain stature, rarity, or class in their products and services.
A specific brand or product can be called a luxury brand or product if they meet the criteria of the three Es—Excellent, Exclusive and Expensive. That means, for a product to be classed as luxurious, it should be rare, excellent in quality and cost a lot of money.
What do you mean by luxury brand marketing?
Luxury brand marketing focuses on the marketing approaches and strategies to market and sell luxury products and brands. Most marketing strategies focus on consistent high pricing to maintain the exclusivity of the brands.
Other elements of luxury brand marketing trends include lineage, craftsmanship, uniqueness, prestige and prestige of their clients.
What are the main characteristics of luxury marketing?
The main characteristics of the marketing of a luxury brand can be encapsulated by the acronym PPPPS:
- Public figures
What are the latest luxury marketing trends in 2022?
The way luxury products are placed in international markets and marketed has evolved over the years. If you intend to start your own luxury brand or work as a luxury marketing manager, you will need to be up to date on the latest luxury trends in brand marketing.
Here are a few new marketing trends in the luxury market that are popular in 2022.
- Increasing usage of 5G tech to provide premium shopping experiences to consumers.
- Improved numbers of direct-to-consumer luxury marketing for better customer relationships.
- A boom in user-generated content that is visually appealing or “Instagram-worthy.”
- Combining art and luxury in marketing campaigns.
- Collaborating with celebrities and content creators to inspire new visions.
- Efficiently using FOMO among millennials and Gen Z to increase conversations around the brands.
How can you market luxury brands well in 2022?
Digital marketing has influenced the world of luxury brands in a big way in the last few years. According to a McKinsey survey, 80% of all in-store luxury purchases are influenced by digital promotions, while 8% of all sales happen online.
Therefore, you need to be quite adept at online and digital marketing to be able to market a luxury brand well. Here are a few useful luxury marketing strategies that might do the trick for you.
- Understand who might want to buy luxury products and the reasons behind their purchases.
- Utilise visual social networking platforms as much as possible.
- Give equal consideration to style, user experience and functionality in your brand website.
- Take advantage of your brand heritage to weave engaging stories around your products.
- Employ paid social media advertising to improve brand visibility.
- Don’t forget to engage in solid SEO marketing apart from social media marketing.
- Create informative and aspirational content to educate potential customers about the significance of your products.
- Position your products as an easy way for people to upgrade their social statuses.
Since the world of luxury brands is aimed at the rich and successful, marketing professionals in the industry can earn decent paycheques as well. According to a report by Glassdoor.com, an average luxury brand manager can earn £55,549 per year.
Thus, it can be lucrative to seek a career in luxury brand marketing and the easiest way to get into the game is to pursue a formal course on the subject.
Find out more about LCCA's fashion marketing course here.