What is Luxury Marketing?


Luxury marketing is different from mainstream or mass market, because consumers have different motives to buy luxury. Some relate to a desire for quality or to own a “work of art,” and frankly some relate to a desire to let others know they can afford that work of art.

People choose brands for different reasons, and consumers have different motives to buy luxury. Some relate to a desire for quality or to own a “work of art” (think high-end artwork, shoes, handbags and jewelry), and frankly some just relate to a desire to let others know they can afford that work of art. In today’s competitive market many players try to communicate the same message on the quality or design features of their products. So how can luxury companies stand out? How can luxury brands differentiate themselves in a world with so much competition?

Luxury is big business. Whilst it may be defined in different ways across various cultural divides, there is no question that it is big business. In order to keep customers happy luxury brands have gone down-market and have begun to manufacture cheaper ranges to suit the tastes of a mass market.”

The luxury sector is undergoing a radical change. As a result, many brands are moving upmarket in order to stay relevant and boost their sales by creating luxury products for a mass-class customer. The luxury market’s recent evolution has taken place within the context of broader shifts in consumer spending patterns. Globalization and technological developments such as faster Internet connections and mobile devices have allowed more people to access real-time information and share unique lifestyles with one another regardless of location. However, these changes have also led to a shift in consumers’ mindset and preferences.

Luxury brands have always differed from mainstream brands in many aspects, and signaling is no exception. According to signaling theory, a luxury good conveys an identity to an individual through the social groups they associate themselves with. 

Luxury brands use four main methods of status signaling: 

  • Luxury Logos – In the world of luxury brands, great logos are paramount to creating an identity and market share. Unfortunately, many luxury brand marketers overlook the importance of the logo and focus exclusively on churning out content that doesn’t necessarily provide value to their most important audience: the customer.
  • Luxury Heritage – Some luxury brands sell the “status” following from wearing their products. The more a company’s brand name is seen wearing the status, the higher values brought to potential buyers. Other brands are positioned as being identified with micro-groups of people, and by extension, believed to confer membership in that group to the wearer.
  • Exclusivity – It provides the greatest form of social proof in marketing. Exclusivity is a fundamental human trait that everyone responds to. The perception of exclusivity makes people more likely to respond or comment in a positive manner. 
  • Authenticity – Signaling authentic products is a key factor for identifying customers authenticity and this perception has a strong influence on purchase intent. In the fast-changing world of today, the fashion industry is constantly struggling with every moment of curiosity and needs to come up with something new that people will want to wear. 

Luxury brand marketing is the process of communicating a brand’s unique value proposition to customers. In its words, “a luxury brand is a complex platform that conveys messages about quality, lineage, status and taste.” Although some companies use advertising to communicate their luxury brands, others rely on word-of-mouth marketing. Whatever the source of communication, a luxury brand can often result in high profit margins for both the manufacturer and retailers; this is all because of the emotional values associated with the brand.[1] These values extend beyond just offering higher price points for its products. The ways in which luxury brands keep up with consumer trends and maintain successful businesses has changed over time due to modern day consumer behavior.

A luxury brand is not defined by its price tag: almost all the high-end fashion brands we see today are expensive, however they have transformed to offer an enhanced experience for their customers where all elements of the product mix converge into an image of exclusivity, fashion, desirability, elitism and individuality.

Contrary to popular belief, there is a technique that can be applied when marketing luxury brands. It’s similar to the marketing strategies used for brand loyalty in other industries. People may view “luxury” products differently than other products. The luxury label itself has more weight in the minds of consumers. This leads to people valuing the product they have more and creating excitement around new purchases. It’s helpful to create a mystique around the luxury brand. This can be accomplished by building a “ritual” around obtaining it. It is important that this ritual be seemingly effortless or simple, so that people feel empowered rather than overwhelmed by the nature of perceived luxury products.

One method of creating a mystique for your luxury brand is by building a “ritual” around it. It’s a way that consumers can build a stronger bond to your brand, and also think about the “lag time” between when they want to buy your product and when they ultimately do purchase it.

Luxury brand marketing isn’t just for marketing luxury products. In fact, many brands put more resources into marketing than the product creation. Here are some characteristics of luxury brand marketing.


Sophisticated, timeless products that meet the most exacting criteria in terms of quality, design and technology. Performance is not just an idea; it is our way of life and the foundation of everything we do. Our guiding philosophy is to create products for the person who wants to make a sport out of their watch, as well as for those who simply need.

We are always looking for smart, motivated people with drive, character, and heart. We constantly challenge the status quo while remaining committed to our values and culture. To those we hire, we promise a work environment that is collaborative, rewarding, and constantly exploring new ways to reach the world’s most influential consumers.


In order to understand and to appreciate the message of luxury a person must be familiarized with its history. If someone has not realized the luxury is not acquired overnight but it is cultivated and established by a selection of extremely talented people in each and every detail that a brand stands for. Each one must do his best in order to provide the ultimate gratification and satisfaction for customers. Those born into luxury have one thing that have never experienced before – things like unconditional love. If you were born into a certain family, you will automatically live your life with privileges and more.

There are many things that make a luxury product exclusive and different from the rest but one thing is true: it has a legacy. Since ancient times, luxury products have always been connected to an elevated sense of goods and services, which evolved in parallel to the development of societies in every continent. The oligarchic ruling classes did not lose their fascination with luxury items; gold powder for example was used as a way to display wealth and power.


One of the most powerful persuasion techniques you can use is scarcity. It is the idea that people value things more if they are rarer. Scarcity is a marketing concept learned in Marketing 101. It can be one of the most powerful persuasion techniques you can use. It causes people to believe there is a limited supply of something, which leads them to give in and buy whatever is being offered. This has been used in many well-known cases such as when a company makes a very limited quantity of a product, whether that be Microsoft making the Xbox One console available in all territories simultaneously or Hermès creating extremely limited-edition silk scarves. These items are often harder to obtain than originally planned which then makes them limited editions.

Scarcity by definition is a situation in which a limited supply of something is available.  Scarcity can be used both verbally and non-verbally to persuade someone to buy or do something. Thousands of years ago, our ancestors were much busier than we are today – they had to be. They did not have grocery stores or big box stores where we could just pick up what we need, when we need it with ease. This meant that when wintertime came around, they needed to prospect, find and store enough food for them and their family for the entire winter months. This created an environment of true scarcity and taught people who live with this type of

Public Figures

These are the perfect opportunities for luxury brands to have a presence close to the stars – without looking unethical. With deodorant, watches, jewelry, handbags – the list goes on and on. One of the strategies I will use in the luxury marketing arena is the “celebrity endorsement”. With one photograph, idea or comment on behalf of a luxury product, a celebrity has the ability to influence a potential client to purchase their product.

In this day and age, a celebrity endorsement has never been more prevalent than it is today. There are numerous product advertisements that feature a celebrity. Such examples include celebrities promoting trainers, underwear or perfume on their social media pages. In order for me to be effective with this strategy, I would need to conduct a strong market research project to identify target celebrities that are applicable to my brand. I would also need to tap into my network and interact with current clients in order for them to recommend area celebrities that are compatible with my brand.


Pricing strategy is a critical success factor for luxury brands, and it’s very complicated. Luxury brands must justify a higher price by maintaining perceived value. Perceived value is influenced by price and other factors, such as brand image, product design and product quality. The retail prices of luxury goods are substantially higher than those of the same products offered by competing non-luxury brands. But to ensure they keep tapping into their target customers, luxury marketers have to follow a strategic pricing approach rather than going with the obvious “higher price generates more revenue” win-win thinking. 

This requires significant investment in product research, design processes, production, marketing and advertising. Pricing, positioning and segmentation strategies must be based on strong consumer insight to make those prices believable. A mistake in pricing strategy can easily erode customer loyalty and impact a brand’s reputation.

What is Luxury Brand Marketing? Put simply, luxury branding is the management of a brand that targets those offering products and services in the luxury space. In other words, it’s an umbrella strategy for companies who are trying to tell the world that what they’re doing is just a little bit more special.

with love,