Luxury goods such as clothing, perfumes, watches, handbags are in high demand in 2023. And believe it or not, they form a major part of the on-demand sector. Many consumers want these goods to be delivered to them at their own comfort.
The global luxury goods market is projected to grow from USD 257.26 billion in 2020 to USD 352.84 billion in 2027. Which makes it a great opportunity to start a luxury goods business in 2023.
To start a luxury goods business, one needs to identify a niche, work on the marketing and associate with the affluent clientele. Let’s look at some tips for starting a luxury business.
1. Identifying a niche area
If you take a close look around the market you will find that several people are offering luxury business ideas and alternatives. This competition can be pretty difficult in case you decide to opt for saturated segments. Even when you decide to enter these markets you need to have some points of differentiation.
For instance, if you are looking to enter the luxury business of diamond jewellery, you will discover that prominent brands are selling high-cost products only. So, there will be a market available that is searching for more affordable alternatives, without losing out on the beauty of diamonds. Here you may bring in the differentiation by selling lab-created diamonds which offer several benefits.
2. Add symbolic value to the products
Most successful brands have succeeded in adding symbolic value to luxury products. So, what does it mean? It is perceived that selling is all about deciding what the customers value most and supplying it to them.If a client purchases a Louis Vuitton bag, it is bound to make her feel good. The reason for this feeling is that it brings a sense of achievement to her.
Having a symbolic value is not tangible rather, it is more of an immaterial value attribution for a product. Your symbolic value can be a business that values the protection of human life and sustainability. The clientele that shares similar ideas will be your target audience.
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3. Key lies with the affluent clientele
All luxury brands such as a luxury watch business for instance, need to focus on a specific customer segment. These are the people that have means of buying these products. The more affluent your customer base is, the more status will be attached to the brand. This is the reason why these brands spend millions on endorsements from celebrities.
George Clooney made $40 million for being the face of the luxury coffee brand Nespresso. Dior had to spend as much as $55 million over an 11-year contract engaging Charlize Theron for the product range of J’adore perfumes. This trend has been around for years as in 2012 Angelina Jolie was hired by Louis Vuitton for $12 million. You need to get the right people to wear your products and the rest will follow suit.
However, for startups getting people of this caliber, for endorsing a product might not be possible. But if you can utilize the right marketing strategies for these things you will end up in the right places. Some up-and-coming designers out there will offer celebrities some outfits for free to wear at some public events.
In exchange for this, the popular star will mention the name of the designer in the interviews. Many businesses have managed to break in by using this method. You need to find out who uses products similar to what you are offering and you can pitch to them.
4. Consider your marketing carefully
One of the more popular tools you can use for marketing your luxury products brand is digital marketing. You need to start by understanding how you can set up a full website. Get help from expert web designers and developers for getting this work done for you. You will need a beautiful and high-performing site that can communicate the brand effectively.
It is possible to have visual social media platforms such as Instagram on your preferred list. One can also use other strategies such as search engine optimizations or SEO, content creation, and paid ads. You need to pay close attention to campaigns and the language used. It is a good idea to have products that are cheaper than the standard ones but, the use of the word “cheap” should not find a way in your marketing language.
Having slashed prices or discounts is something you must not even consider. For most of the clientele in the luxury segment, the higher the price the better it is. All luxury brand marketing experts will inform you about one aspect of luxury marketing. You are never selling a product. What you are selling is the value. For instance, Ralph Lauren will design dreams and not clothes. Rolex means success and elitism and so on.
5. Explain your reason for being a deserving luxury brand
Although well-established and exclusive brands don’t need to explain the merits of their products explicitly, a startup in the luxury segment will always need some introductions. Make sure that your promotional and packaging material is highlighting the superiority and quality of your product.
The product can be a limited run, artisanal, bespoke, or created by using some exclusive technology. So, keep in mind that you cannot expect the luxury clientele to select your product just because it has a higher price tag. You need to attract them to the product by explaining its uniqueness.
It is a good idea to provide gifts and tokens to the customers to let them know that the business is different than others. But, also remember these trinkets in the luxury business need to be of premium quality as well. Some gifts such as leather straps, custom metal badges, and some other such items will make the clients feel valued and will make them develop a connection with the brand.
6. Be rare however also available
Luxury products can never be mundane. It is necessary to make the products available via some exclusive avenues that can reflect the brand value. The brand and product logo should appear on the shelves near the items that are belonging to a similar caliber.
Always be specific while targeting the clients. The clients that purchase luxury items will be expecting terrific customer service. They are also willing to pay extra for making sure that their experience is above the rest. In case the worst happens and clients end up finding faults with the product, make sure that you have all the requisite responses to keep them happy with the brand.
There are some challenges involved in setting up a luxury products business. One of the more significant ones is building on the values rather than the actual product. Keep in mind that although it is possible to develop a luxury brand right from the scratch, you will need more effort than having an outstanding product. If you are looking to develop an app for your luxury business get in touch with experts at Jungleworks for advice.
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