Luxury Brand: 6 marketing strategies to follow in 2022

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"Breaking the Laws of the Market, the First Rule. Unlike any other, luxury does not respond to demand growth. It's a game of opposites, where excellence stands out and prevails. Authenticity and unattainability are the watchwords, and only when considered in every aspect do they transform into efficiency. If the consumer can view the product as a prize, then it works. When that's not the case, well, it will be necessary to go back to square one. The rules haven't been broken. In the monarchy of excellence, it is not the customers who dictate the law. The presence of a mysterious aura and curiosity must be constant. Luxury products are not sold. Luxury products are desired and then obtained.

Characteristics of the luxury brand:

Authentic and limited: The supply should not exceed the demand. Luxury goods do not follow the laws of the market; the supply does not directly respond to demand but deliberately maintains limited production. They possess a unique authenticity, and their identity is non-negotiable. They are timeless and durable. They never tire. The possibility of customization should be constant to allow consumers to have an awareness of its value.

Hedonistic and imperfect: It should not be perfect; it should have its peculiarities. Just like in everyday life, where imperfections make people special, in the world of luxury, they make the product effective. Traditional marketing tends to strive for perfection, but not in this case. It is necessary for the producer to create a symbol that aims at aesthetics and is necessarily different from others. Understanding the desires of buyers, not only to be able to advise them but also to anticipate their needs.

Unattainable: The purchase should not be easy. Those who approach the luxury sector should feel special. By definition, it is a brand not accessible to everyone. At the same time, it needs to be desirable by all. To appeal to the masses and then reach the top spenders.

Now that we have a clear understanding of what luxury is, we can define the central point of our article. Here are the 6 marketing strategies for 2022:

1.     Veblen Effect, creating a myth around the product: In the strict sense of the term, if we consider the theory that states that a good is purchased more as its price increases, it is easy to understand how this is the thread running through the world of luxury. Possession becomes a source of pride and bragging rights. To succeed in this endeavor, the product must become a mass desire and to do so, it must acquire value. This happens when the product possesses unique values distinct from any other. Known by all, desired by many, accessible to a few. Generation Z, in this sense, takes the lead: increasingly, they are in search of inimitable pieces. Therefore, the central point is to transform the exclusivity of the products into true uniqueness through the most indelible channels that currently exist: social media.

2.     Making luxury an experience: It is necessary to establish a meaningful relationship with the customer. The spotlight is now on them. It is essential to win them over, and the design must be focused on the individual and their desires. Organizing events is necessary to introduce the product. In recent years, especially after the pandemic, interactions have increasingly shifted towards the digital realm, as well as the physical. In any case, whether live or through streaming, these interactions will help create a connection. In this way, the experience will bring the brand to life, and the consumer will not be able to do without it anymore.

3.     Influencer marketing: Influencers currently dominate the world, and the facts prove it. That's why it's important to carefully consider who to associate your brand with. The most obvious idea may be to associate the famous with the effective. However, be cautious, as in the world of top spenders, this strategy could backfire. To attract attention and demonstrate the product's uniqueness, the associated personality must also be unique. A person who has appeared in other advertising campaigns in the last month should be excluded from our search, no matter how well they may suit our brand. They have already lost their uniqueness. Our chosen person must immediately evoke the product, and the consumer should not have to think twice.

4.     Building digital and non-digital relationships: Luxury is a world of personalization and individual attention, the realization of social recognition and networks between individuals, and now more than ever, between individuals and brands. Contact between the company and the consumer is crucial to optimizing the product experience. Seamless integration of all touchpoints, following an omnichannel approach, is the basis for achieving good results. Focusing on the digital realm, both for communication and marketing, is a good idea. Now, nearly 80% of companies are oriented towards digital transformation. In this regard, intelligently conquering both social media channels and offline platforms is certainly effective.

5.     Anticipating trends, including technological ones: Top-spending consumers are the ultimate early adopters of technology. In 2022, technology and digital are the watchwords for premium brands. Although luxury companies often tend to remain faithful to classic solutions for customer profiling and product marketing, 2021 has confirmed the need to rely on new digital tools, especially advanced and optimized e-commerce platforms from a UX perspective, as well as to seek and adopt AI and, why not, AR systems, in order to stand out through innovation and quality. The goal is to offer an increasingly exclusive luxury shopping experience.

Social responsibility strategy: The logic that increasingly informs purchasing behavior, particularly in the case of luxury goods and services, is based on a search for value, authenticity, and individual and collective responsibility. One of the major trends, mainly demanded by Millennials and Gen X, is corporate commitment to social and environmental issues as an integral part of the brand's mission. Many luxury brands have embraced this trend, incorporating community causes into a strategic vision that accompanies the entire customer journey and defines their value system. Being relevant by being present is the level of social responsibility expected of premium brands, the first called to become aware of their impact on the environment and the community."

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