Marketing a Luxury Brand: 22 Rules Everyone Should Know

The 22 rules of marketing a luxury brand everyone should know:

— Marketing Max (@MarketingMax) March 3, 2023

1. Do not pander to your customer's every whim

The customer is not king.

The luxury brand comes from the creator's mind, driven by a long-term vision.

— Marketing Max (@MarketingMax) March 3, 2023

2. Don't make it easy to purchase

If it's easy to buy, you've failed.

The luxury brand has to be earned.

Higher in-accessibility, hire the desire.

— Marketing Max (@MarketingMax) March 3, 2023

3. Luxury sets the price

This is supply-based marketing, not demand-based.

In Luxury, you first develop a product and then see what price you can sell it for.

— Marketing Max (@MarketingMax) March 3, 2023

4. Ignore positioning

Luxury knows nothing about positioning.

Being unique is what counts, not any comparison with a competitor.

The only position Luxury holds is the highest one, not to be compared to any other.

— Marketing Max (@MarketingMax) March 3, 2023

5. Do not respond to an increase in demand

With normal marketing, your business can function with small margins and high volumes.

With Luxury marketing, you want to make your product unavailable.

— Marketing Max (@MarketingMax) March 3, 2023

Unavailable means rare and rare means expensive.

A luxury brand must have more people who dream of it than people who buy it.

— Marketing Max (@MarketingMax) March 3, 2023

6. Only embrace enthusiasts

Target those who share your values and love what you offer.

Ensure you exclude 80% of the premium segment of the population that doesn't.

— Marketing Max (@MarketingMax) March 3, 2023

7. Make sure your product has just enough flaws

Pursue delivering a perfect premium brand product relentlessly.

But it can't be perfect. It needs to be perfect with a touch of madness.

— Marketing Max (@MarketingMax) March 3, 2023

If a luxury product is not a flawless product, the reverse is not true: adding flaws does not turn a regular product into a luxury product.

— Marketing Max (@MarketingMax) March 3, 2023

8. Make the presumed price higher than the actual price
Value is created when the imagined price is higher than the actual price.

— Marketing Max (@MarketingMax) March 3, 2023

9. The role of advertising is not to sell

Don’t advertise to sell the quality of the product; advertise to sell a dream.

You’re not buying a shirt; you’re buying a piece of the brand's universe.

— Marketing Max (@MarketingMax) March 3, 2023

10. Ignore consensus

Testing implies looking for consensus: any option could be chosen as long as it is elected by most average people. Not luxury.

— Marketing Max (@MarketingMax) March 3, 2023

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— Marketing Max (@MarketingMax) March 3, 2023

11. Not just birth

Luxury is not an accident; it’s a result of meritocracy.

BUT Luxury is no longer only based on birth; it can and is oftentimes based on merit.

— Marketing Max (@MarketingMax) March 3, 2023

12. Not traditional ads

Brand awareness must be prestigious.

Product placement in advertisements must be unique.

Luxury is never pushy; it simply makes a statement and leaves.

— Marketing Max (@MarketingMax) March 3, 2023

13. Protect clients from non-clients

Modern luxury works on the open-close principle.

The brand must be segregationist and forget all democratic principles.

Non-clients are out of touch new movement starts with your products.

— Marketing Max (@MarketingMax) March 3, 2023

14. Group synergies

Avoid group synergies.

This is one of the most obvious ways of losing your pricing power - one of the strongest points of the luxury strategy.

— Marketing Max (@MarketingMax) March 3, 2023

15. Raise your prices

Luxury doesn’t care about the price-demand relationship.

As time goes on, increase the price even if demand is lower.

— Marketing Max (@MarketingMax) March 3, 2023

16. Raise the price of the product range

A brand that cannot grow in volume and profitability other than by launching accessible products shows that it is no longer part of the luxury market.

— Marketing Max (@MarketingMax) March 3, 2023

17. Do not sell

The worst thing you can try to do is sell people.

Most brands chase clients and sales.

Luxury brands attract the people they want.

— Marketing Max (@MarketingMax) March 3, 2023

18. Avoid consultants

A consultant will tell you to be like other brands.

They’ll share with you the best practices that you’d rather avoid.

You’re a Luxury brand, don’t listen to anyone but yourself.

— Marketing Max (@MarketingMax) March 3, 2023

19. Avoid star ratings

You don’t care how people rate you, and the last thing you want is for your customers to care too.

Don’t talk about, brag about, or request people to rate you.

— Marketing Max (@MarketingMax) March 3, 2023

20. Do not relocate factories

You’re Luxury, and Luxury doesn’t take the cheap route.

Sure, you could save money by relocating factories, but then you wouldn’t be local.

Local roots increase the perceived value of the luxury item.

— Marketing Max (@MarketingMax) March 3, 2023

21. Avoid cost reduction

Cost reduction will result in sales from people who aren’t sold on your brand and values, which is the last thing you want.

Never reduce your cost and risk non-clients potentially buying.

— Marketing Max (@MarketingMax) March 3, 2023

22. Stay close to bad art

Keep your brand close to the most unpopular art.

Make yourself the leader in emerging trends that 99% of people haven’t caught onto just yet.

— Marketing Max (@MarketingMax) March 3, 2023

Summary:

Luxury brands are nothing like running a normal company.

Take everything you know about marketing and business and flip it on its head.

— Marketing Max (@MarketingMax) March 3, 2023

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— Marketing Max (@MarketingMax) March 3, 2023