High net worth individuals , consultants, CEO’s as well as wealth managers are still very much into old luxury brands. But in the last 5 years, the perspective is changing as the shift in power and wealth is transferring to Asia.
Countries like Japan have adapted and are much more welcoming to new luxury brands that are able to fulfill its need for creativity and customization. This has encouraged different brands to enter the luxury market psyche.
With the help of online tools and social media many have attained global success because of it. While it is not easy to create a new iconic brand, there are ways to improve the branding so that it can be categorized into the luxury essence market.
Through unique positioning and niche targeting within larger mass markets, new luxury brands have a chance to compete with century old luxury brands and find their way inside local and international cultural fabric.
1.What makes a Luxury Brand Unique?
The most crucial aspect when building a luxury brand is the unique selling point. What makes your brand stand out? What is your niche target, who are the clients you want to get into your cycle? What will make you different from century old luxury brands?
What is the experience that you are going to provide, what are the exclusive offerings and price points. What will be the look and feel that you want to give, who are the kinds of client you envision will be using the brand?
For example Giorgio Armani is a luxury brand that is known for catering to men, their line is mostly shaped to fit male entrepreneurs who want to look sleek and sporty at the same time. Alta Gift Basket a luxury brand in the Philippines, serves high net worth Filipinos and it was created for CEO’s, Ambassadors, Influential Icons and Wealth managers.
The celebrity greeters is one of the very affluent features of their service. It is focused on providing experience and creates memories for the affluent by allowing them to gain access to high end models and celebrities as official greeters. High end models and celebrities as well as influential people are the ones who will deliver the basket using a BMW car or a chopper. This is what sets the Alta Gift Basket apart from other luxury brands in Asia. It is offering something that has never been tried before, with the claim that there are more and more high income earning families in the Philippines.
2. Clear Differentiation of Brand Experience
With the growth more millennial clients who prefer experience over mere prestige a lot of luxury brands are already involving customization features for their services. Luxury brands should be able to establish the mood and feel whenever the brand is purchased.
Nowadays it is not just about purchasing a really expensive chocolate cake, it is also about what type of box was used, how was it delivered, what is the story behind each of the chocolate cakes and what are the ingredients that make it stand out. What is inside the luxury brand that cannot be easily imitated by just about any brand in the world. The more distinct the luxury brands is the better- and more loyal following occurs.
3. Combine Symbolic Value and Functional Value
LV and Chanel bags are purchased not merely because they are a symbol of status. The same goes for Christian Louboutin, apart from the iconic red bottoms people buy them because they are sturdy. These luxury brands can withstand the test of time. The way they are designed and crafted is pure elegance and sheer creativity. People buy these global luxury brands because of the quality, reliability and trust that they are able to provide. Buyers don’t mind paying for them, because they are paying for something that will last for 10 years or more.
It is something that can be handed down from one generation to another like a Rolex watch. TWG Tea a long standing luxury brand, is also able to keep up its hefty prices due to the quality of experience a person feels whenever they visit the TWG shop. People don’t mind the additional price because the experience is guaranteed to be decadent. TWG shops is able to make the customers feel extra important.
4. Strong Exclusivity Factor
Global luxury brands are careful not to use the words free or buy 1 take 1 label on their products. In fact, they never do, even if they go online they are careful with their image and the use of words even as they advertise online. For example, Chanel does not have to post videos that they expect to go viral or trending, instead they invest on full length videos that have a movie like appeal.
Chanel has put careful thought and vision in their online marketing and avoid at all cost the need to post videos or marketing ads that aims to please the masses. Global luxury brands are the trend setters, if they re for everyone and if everyone can just get it, the appeal will be lost. Therefore, a successful global luxury brand never surrenders to the crowd or mass thinking.
Luxury Brands create the standard and Revolutionize the System
Luxury brands have special showrooms like Prada, Gucci and Louis Vuitton and they limit the supply. Some of the bags of Louis Vuitton has a long waiting list, it doesn’t mean that you can simply buy them if you want even if you had the money.
5. Well-Delivered Promise
There is no use of calling yourself a luxury brand if you are merely charging hefty prices without the quality. You can charge thousands of dollars for one facial cream filled with gold powder but if the skin care cream is not able to give the client a healthy glowing skin then it is merely a scam. A real and powerful global luxury brand offers superior quality and brand promise and makes sure to achieve it.
One of the greatest high end brands in the world is Singapore Airlines, while the rates are definitely higher, the brand is able to fulfill its promise. Since 1973, they are able to provide consistent great service and they are always ahead of technological trends making their price worth it.
6. Technology Driven and Adaptive
Luxury brands should learn to adapt at this point to new forms of marketing and digital platforms that can help boost their presence to remain relevant.
In 2014, McKinsey published a report suggesting that the digital world has a major impact on luxury sales of about 45%. In 2019, the impact and ability of the internet to drive luxury sales can no longer be denied.
More luxury brands are merging with tech companies as proof of the upcoming Moola Forums in Asia. Moola Forums is Asia’s Premier Luxury Marketing Community. It is a network of luxury marketers all over the world. It was started in 2013 and it has members globally.
Luxury lifestyle consultants and private wealth advisers to high net worth individuals who want to keep up with the latest digital marketing trends attend Moola Forums.
More and more high net worth individuals are spending time on their online and mobile devices, this is why luxury brands need to adapt to survive in the digital universe. Moola Forums is more than just adapting, it is also about making sure that luxury brands retain their essence and power.
A lot of global luxury brands are now gearing towards establishing luxury online platforms like Venture Harbour, and they are the ones helping brands like Mc Laren, Marriott and Johnnie Walker. The Philippine Luxury meet up that will happen in July 2019 in Manila will tackle the do’s and don’t of luxury online marketing .
The Local Luxury Meetup in the Philippines that will feature official announcement about the “Philippine Luxury Conference 2019” and Q&A portion with Moola Forum regarding the Luxury Conferences in Asia as well as the International Luxury Conferences worldwide.
This 4-hour meetup also features meeting with different luxury lifestyle consultants and private wealth advisers to high net-worth individuals in the Philippines, representatives from various luxury brands, founders and owners of new luxury providers, luxury marketers, and HNWIs.
Who should attend?
If you work in advertising and marketing for these industries, you should attend Philippine Luxury Meetup – July 2019:
- Personal Luxury Goods
- Luxury Cars
- Luxury Hospitality
- Fine Wines & Spirits
- Gourmet Food & Fine Dining
- Fine Art
- Design Furniture and Housewares
- Private Jets & Yachts
- Executive Protection
- Fashion, Jewelry, and Beauty
- Electronics and Appliances