For many years, luxury brands have represented status, strength, sophistication, and style. For many ages, emperors, business moguls, and wealthy people have used names like Armani, Gucci, Rolls Royce, Mercedes, and Ferrari.
More than $ 200 billion is thought to be the market value of the luxury brand industry globally. In 2015, the renowned luxury brand Louis Vuitton Moet Hennessy generated close to 35 billion euros.
The demand for luxury brands will only increase as nations like India, China, and Russia have rising disposable incomes.
But why are these expensive brands so desirable?
Scarcity and exclusivity
People are less inclined to aspire to a brand if it is open to all of them. People frequently aim for challenging goals. Everyone has something if it is readily available, and there is no exclusivity. Attempts to blend scarcity and exclusivity can be seen in limited edition cars and motorcycles. Ferrari only produced 7255 vehicles in 2014.
These high-end brands weren’t created through mass production. Its uniqueness may be influenced by craftsmanship, cost, personalization, a long waiting list, and the nation of origin.
Most people consider Italians to be trendy. That is one of the main causes for Italy’s dominance in the production of fashion labels.
A sign of status
Vema Reddy, a technology professional, continues, “I purchase expensive goods for the status it brings.
When asked about additional factors like comfort, style, or quality, he said, “Sure, they’re important, but you can get them from other consumer brands too.”
According to my acquaintance, his BMW represents his achievement. As a result, when someone buys a car, he can be buying prestige rather than something practical.
limiting the avenues of distribution
To ensure that the product is easily accessible, consumer brands produce in huge volumes and distribute widely. On the other hand, the luxury market operates in the exact opposite way.
The goal is to keep a waiting list while producing less than what is needed.
For instance, Prodiguer’s limited-edition bottles were only made available to a small number of people. Another illustration of the limited-edition strategy is Apple’s limited-edition 18-karat gold watch.
Luxury goods are often sold at the company’s own stores, where customers are treated like VIPs.
At the BMW dealership in Munich, customers can test drive a BMW before making a purchase.
Experience and Belonging
The brand experience continues long after a customer makes a purchase at a business selling luxury goods.
The intention is to make them feel as though they are a part of a small, exclusive group. The Beetle Owners Club and the Harley-Davidson Owners Group are two examples.
Tom Ford invited a select number of his VIP clients to attend a fashion show. The ceremony was closed off to the press. Beyoncé and Julianne Moore served as the models, and he himself served as the event’s presenter.
By renting out top-of-the-line vehicles like Ferraris and Lamborghinis and shooting the entire experience for its clients to recall, Envus Motorsports offers luxurious experiences.
Conclusion
The world of luxury brands may be vibrant and intriguing. It seems sense to pause, reflect, and choose our position before launching a company. It’s important to keep in mind that we’re selling more than just a physical item; we’re selling the feelings that go along with it.