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<aside> 🗣 At Part & Sum, we operate with a customer-first approach. This means a lot of observing and hypothesizing about what consumers do and why they do it. And recently, we’ve been noticing how important customer-centricity is for our luxury clients especially.
In general, growing luxury brands requires bespoke methods that combine exclusivity, high price points, and the emotional connection that consumers have to the product. Because of that, to be successful, your strategy will have to be specialized. Why is all that effort worth it? Well, per Women’s Wear Daily, the industry’s consumer base is broadening with some 400 million in 2022 forecast to expand to 500 million by 2030.
In order to demystify what this might mean for your business, I took a look at a fascinating book called The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands. It goes into detail around a list of principles called “The Anti-Laws of Marketing” – I’ve chosen to highlight the two most relevant principles for our purposes here and am proposing we add a new one to the mix as well.
From hyper-personalized experiences to continuous brand storytelling, the following strategies will require a bit of adapting to fit the shape of your needs. Consider these a starting point to seeing better through the eyes of your customers. Let us know what you learn!
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This is the rule I most fundamentally agree with, and a version of one I put forth whenever working with a luxury client. What makes luxury valuable is its unwillingness to conform, compete, or compare - the magic lies in the creative process, vision, and overall identity that comes from the creatives behind the brand.
Instead of positioning a product that relies on filling a void in the marketplace, luxury’s inherent strength relies on a strong, stable identity, unaffected by other players. It’s this uncompromising perspective that gives these brands their power and essence of timelessness.
Everyone who knows me knows I can’t shut up about The Row, the fashion line started by Mary-Kate and Ashley Olsen in 2006. Since the brand’s inception, the twins have become the industry’s most prime example of this rule; they barely advertise or take interviews. They’ve realized that a focus on craft and material is its own kind of marketing.
Silk organza and cashmere sweaters are hardly original, the magic lies in the story woven by the twins - one of mystique, quality, and an intimate understanding of their customer. You wouldn’t spend your hard-earned money on a brand that doesn’t stand behind itself 100%, would you? Your customers feel the same way.
When concocting your strategy ask yourself: What’s our story? Why did we bring this product to market in the first place? What’s our competitive advantage?
Answering these questions provides the basis for a compelling reason as to why people should buy from your brand over others. Captivating imagery, a brand story that clearly articulates your values, and an aesthetic that is confident and self-assured, shows your customer that you value the investment they’re making in you.
High-end brands are seen as purveyors of culture and good taste, with a reach far beyond the products they sell. Think: the Fondazione Prada in Milan or Rolex’s sponsorship of Formula One. These initiatives project each brand as something larger than itself.
I know what you’re thinking: “But Evan, I don’t have $300,000 to blow on a grand prix.” That’s fine, not many brands do, but there are still many ways that you can allow yourself to flex your cultural prowess without spending much money at all.
Consider your brand’s inspirations, values, and motivators. Perhaps a piece of art inspired a particular collection or you played certain music to advance the creative process – share those with your followers, allow them to experience your world outside of the products you sell and create a community that’s not merely transactional. This more authentic relationship allows you to strengthen your bond with consumers beyond the surface level. That’s all you’re looking for.
Harkening back to our friends over at The Row, each month the brand releases a playlist on Spotify served up via email and social media. This playlist also functions as their in-store music and most importantly, a talking point between myself and my friends, most of which don’t even identify as customers of the brand. What does it do? It asserts the brand as a tastemaker outside of the fashion space and offers you a glimpse into the company’s brain. It’s free, fun, and essentially vibe curation. That’s all people are doing. Curate a vibe, why don’t you?
Whether it’s utilizing Instagram Story Highlights or building out a completely new platform, this gives aspiring customers (especially those who can’t afford your product yet) a genuine connection and entry point into the brand. Give them enough reasons to come back and you’ll be ready once they’re able to make that first purchase, turning this low-end investment into a high-impact result. Brand affinity is a powerful thing—it speaks to the brand caring about you. When you feel understood, you’re more than likely going to pull the trigger online or in-store. And even if they don’t purchase, that’s more reach on your posts, which translates into more eyeballs on your products.
So ask yourself: What parts of culture can you naturally become a part of? What ways can you fit into your customer’s life outside of the product you service them with? How can you provide a premium customer experience to all customers, regardless of their purchasing power?
******This is the rule I’m adding because the book doesn’t account for the rise of D2C, COVID-19, etc. Not overlooking your footprint is especially true for newer brands, but it’s a rule that everyone who sells a premium product should also follow.
In-person footprints are key to your product’s discovery and how customers experience it. According to Shopify, 81% of US-based Gen Z consumers prefer to shop in stores to discover new products and more than 50% say in-store browsing is a way to disconnect from the digital world. In an era of empty promises, where everything is advertised as “luxury,” this is a pivotal moment in the customer journey.
Free shipping and free returns are dwindling across categories and consumers are unlikely to purchase a product at a premium price without experiencing it in-person first. Think about this as an opportunity to back up your claims of quality and construction. Whether their income is $100K a year or $1 million, a luxury good is an investment. You’re charging a premium for better craftsmanship and better quality, so get in front of your consumers early and let them know you can be trusted.
The magic of in-person retail not only allows for discovery, it heightens the experience of your brand and functions as a community-building exercise. From interactions with sales associates and the overall in-store atmosphere, your customers are soaking it all in. This is especially true with luxury where you’re selling something meant to enrich and enhance life. Some of my favorites examples are Dries Van Noten’s Los Angeles boutique which boasts art exhibitions and a curated selection of records and Chanel’s mega-interactive Atelier Beauté outpost in SoHo.
For a more accessible approach, I often recommend multi-use spaces, ones that offer the possibility to focus on building community in addition to retail. Whatever direction you ultimately take, make it something that speaks to what your brand identifies with. Really inspired by music? Offer a selection of records. Looking to spark conversation? Invite thought leaders to host talks or events about subjects you’re passionate about to convey a sense that your space is one that facilitates connection.
Don’t have a space of your own? There are still things you can do. If you’re dealing with wholesalers, think very carefully about the other brands they carry. Where will you be positioned on the sales floor? How often do they discount products? Boutiques and department stores function as a microcosm of the overall luxury marketplace, so you want to ensure the foot traffic coming in positions your brand the way you want to be seen and felt.
The journey doesn’t end there. Follow this down every aspect of the sales funnel. How often will you discount come sale season? Do you send excess product to a retailer like The RealReal to potentially recoup cash quicker or take the gamble of storing inventory to run a warehouse or sample sale for your top customers?
The so-called “return of retail” is barely that. The excitement of online shopping – once driven by convenience and cost-effectiveness – is wearing off. We crave interaction and community and thoughtful in-person interactions embrace and nurture that.
<aside> 🗣 What’s it all mean for you and your luxury biz or brand?
While there isn’t a one-size-fits-all approach to marketing luxury, there are a variety of ways to consider the value of your product, the way it enriches consumer’s lives, and how you can create touchpoints that introduce you to consumers ready to buy and ones on the fence alike. After all, marketing luxury shares a question with purchasing luxury: how well does it fit?
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Got an idea for the Part and Sum OS or want to chat? Contact us at [email protected]