How can luxury brands appear so desirable? What makes a brand luxurious? The aura of luxury is the result of a marketing process and, most importantly, an anthropological one that leverages people's psychology, dreams, ambitions, and feelings of belonging.
Continue reading as we help you understand one of the most captivating aspects of marketing.
A luxury product is a good perceived as rare, scarce, and unique, capable of offering its users the chance to elevate their status and stand out.
It plays upon the human need to show off and emerge through unconscious biases, well-defined and examined in modern psychology.
Sometimes, we desire a product that is hardly accessible to most people. That makes us feel unique (snob effect).
Other times, we are attracted to high prices as they prove a certain wealth and social status (Veblen effect).
Or, at times, we purchase products due to trends to feel part of a privileged group (bandwagon effect).
Recently, luxury marketing has also started helping mass brands, creating new communication strategies based on the phenomenon of luxury democratization or masstige, as in the case of influencer marketing.
Luxury marketing is not restricted to high-quality products. Unlike traditional marketing, it tries to offer a mesmerizing experience for the consumers, giving them access to a world of prestige and helping them feel part of the elite. Therefore, what counts is excellence, quality, and uniqueness.
Effective communication starts from profound knowledge, even in the case of luxury brands. You can establish authentic connections and project the values of your brand only if you understand the desires, motivations, and aspirations of your target audience.
Offering limited editions to some products creates a sense of urgency and necessity in the buyer. Not coincidentally, exclusive collections and closed events are getting increasingly popular.
Swatch x Omega: a case study
The collaboration between Swatch and Omega offers a prime example of how exclusivity and scarcity can promote success in luxury marketing campaigns. The well-known brand in the world of luxury watches and the limited number of items produced created an urge and desire, encouraging collectors to purchase. This limited edition made every piece a once-in-a-lifetime opportunity, increasing their perceived value.
Quality is the operative word when we talk about luxury brands. Enhancing the attention to detail and artisan skills can help retain a place in the market and not just be a temporary trend.
Another goal of luxury marketing is to fashion a charming narrative for the brand by telling its story as effectively as possible: the expertise and tradition gathered, the care for its territory, and the passion and creativity expressed. In other words, what makes the brand unique?
As Millennials and Gen Z have become new stakeholders in the luxury industry, launching effective and high-quality social strategies is now essential. To attract the appropriate audience, one needs a well-designed website, quality content, and participation on the social platforms used by the target. In addition, it is crucial to look at the future with the latest tools and technologies in mind, such as Augmented Reality and NFTs (think about Lamborghini).
Collaborations with other prestigious brands, artists, or celebrities can result in fruitful synergies, widening the pool of customers and clients and increasing brand visibility or adding something unique to products belonging to different sectors (as in the case of Tiffany x Supreme). Luxury marketing is not only about quality and expensive products but is a form of communication that merges psychology and excellence to make a brand stand out. CLICK HERE to learn more about combining marketing and psychology.)