The main indicator of a luxury brand is exclusivity. Not everyone owns something from a luxury brand, but they may desire to own something from a luxury brand. These brands have a certain prestige that makes people want them – especially when they know that not everyone has them. If you want to start a luxury brand or turn your small business, here are the five key elements of exclusivity that most established luxury brands have.
#1: Design
This applies more to businesses that sell products to customers rather than businesses that provide services to clients – but your logo, website, and social media platforms also use design. At the moment (and for a while now), the design of a brand that exudes luxury is usually sleek, minimal, and sticks to a neutral color palette. These three elements are usually associated with elegance, whereas a busy and colorful design is usually associated with children.
So when it comes to the design of your product and/or company logo, keep this in mind. Of course, there are some exceptions with some luxury brands trying out more colorful palettes, but these are usually the more established brands. New luxury brands should stick to tried and true design methods.
#2: Meaning
When luxury brands don’t succeed, it’s usually because they couldn’t get their target audience to believe in their meaning. A luxury brand promises to offer something that other luxury brands may not offer, and definitely something that everyday brands aren’t offering. If your consumer base believes that your brand is offering the same thing as an ordinary brand or another well-known luxury brand, they’re not likely to do business with you. This all comes back to knowing your customer, knowing your industry, and above all else, knowing why you started your business in the first place.
#3: Price
Price is the number one indicator when it comes to identifying a luxury brand. In 2019, the Rolls Royce Phantom ranked among the most expensive cars at $452,750 – and Rolls Royce is a well-known luxury car brand. However, price is the least important incadtor of luxury brands. Consumers are good at telling what products and services are overpriced, and a higher price doesn’t always equal luxury in their minds.
At the same time, you don’t want to underprice your products or services. You know the value of your products or services, and you’ll want to price them accordingly.
#4: Quality (Product and/or Service)
This is where the quality of your product or service comes in. Luxury products are usually made with materials, ingredients, etc. that are of higher quality and last longer or provide more benefits to the consumer. On your part as the business owner, this may take more time and money – and this is when higher prices are acceptable by consumers. Luxury products are created by professionals, and many consumers can recognize when low-quality products are used instead.
The same goes for service. All businesses provide customer service, but some businesses provide professional services in addition to customer service. A luxury service should provide a quality and professional experience that clients feel they can’t get anywhere else, and excellent customer service should be a top priority for all luxury brands.
#5: Rarity
High quality can also be equated with rarity, as high-quality products can be rare. Something that is very common and that most people own isn’t considered a luxury because it isn’t rare. This also applies to services; if all businesses are offering the same type of service with little to no differentiation, it will be seen as ordinary and not luxury.
Rarity can also mean thinking outside of the box when it comes to the products and/or services that you’re offering. For example, a fitness company whose main focus is on physical health may sell products or provide services that serve that need. They could also give away promotional stress toys to promote mental health awareness since most fitness companies focus on the physical only. This shows their customers that they understand the connection between physical and mental health.
When it comes to starting a business in general, you’re going to want to offer something that seemingly no one else has offered before because that’s one good way to ensure the success of your business. Turning your business into a luxury brand takes it to the next level and still requires market research so that you can understand your market and the luxury sector of your industry.
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