Here is a quick POV and best practices for brands who are looking to become more relevant with consumers while still maintaining luxury status.
published by www.ihartjillian.com
3. Luxury looks
different today
than ever before.
The values of luxury buyers have shifted.
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FROM
Heritage
Handcrafted
Affluence
Status
“Being the best”
TO
Self-expression
Tech
Exploration of individuality
Experiential
“Being your best self”
One thing that remains consistent:
Exclusivity
4. If the mere idea of “luxury” is
exclusivity, how does a brand become
a broadly relevant lifestyle brand?
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5. By increasing perceived brand value.
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If a consumer loves [insert anything], this will have a positive effect on their
willingness to pay for a luxury, top-end brand.
6. Coach is a
bad example.
Lesson Learned: Coach decreased their brand value by
offering products at a discount, thus losing their luxury appeal.
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To appeal more broadly to the masses, Coach made cheaper
versions of expensive bags and sold them in outlet stores.
“Once-loyal customers were seeing too many logo bags on the street that less
affluent outlet-shoppers were getting for less than they paid for their own bags.”
-Bloomberg
7. THIS is how I’d do it:
1. Increase Brand Perception
2. Maintain Exclusivity Status
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9. Stand for something
more than a portfolio.
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Let’s start with the obvious:
Self-Expression Model
Consumers today use brands to express their
identity or ideal self in which they aspire to be.
To increase perception, be something more to
consumers than your product.
10. Assimilate an already
existing lifestyle.
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Before, luxury in lifestyle looked like this:
Today, it looks more like this:
Aspirations and
identities set by brands
Brands dictated
luxury and lifestyle
Consumers adapted
the lifestyle
Aspirations and identities
set by consumers
Consumers define
lifestyle
Brands adapt and
adopt
Iconoculture, An Exploration of New Luxury
11. Don’t try to be
everything to everyone.
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Owning a specific market’s mind share
is key to be relevant.
Stay true to what you are selling. You can’t
mean everything to everyone, rather mean a
lot to a smaller group of people.
“Go-Lite lost their focus, rather than play to
their traditional strengths of making
affordable, light and simple gear, they tried to
expand their gear and other offerings. They
tried to be too many things to many people…
and did not succeed.
More offerings for running, adventure sports
and life-style type clothing seemed to take
away from their original, core focus.”
-pmags.com (outdoor blogger)
12. Create aspirational
docu-stories.
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92% of people want brands to make ads
that feel like a story.
Docu-stories help tell a brand’s story and an
aspirational story inspires consumers to be
their ideal self.
13. Align with the right
people/brands/tech.
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Partnerships help to expand into new
markets.
“Strategic partnerships between brands can be a
mutually beneficial relationship. Partnering
allows established brands to reach new markets,
gain greater distribution and dovetail on their
partner’s previously established momentum.”
-Jeff Lotman, Founder and CEO of Global Icons
14. Get consumers talking
on social media.
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In today’s digital age, word-of-mouth can
be critical in becoming broadly relevant.
According to the 1.9.90 rule, 90% of people
consume content while 10% either create or
participate. Getting the 10% of people to create
and share expands reach among the remainding
90% of users.
16. Consider limited runs and
exclusive distributions.
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Limited edition lines create desire and a
sense of exclusivity.
“The limited nature of Lilly's line at Target could
end up bolstering the company's exclusive
reputation. Even among the mass consumers that
have an opportunity to buy it, it's pretty much
guaranteed they are going to get shut out…It
almost makes the brand even more in-demand.”
-Denise Lee Yohn, retail consultant and author of What
Great Brands Do
17. Offer experiences bigger
than a specific product.
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People value experiences over stuff.
62% of consumers are prepared to pay more for
a simple experience.
Experiences differentiate your brand from the
category and helps build a more meaningful,
exclusive connection with your audience.
2017 Global Brand Simplicity Index
18. Give access to exclusive
offers following purchase.
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Exlusive offers make purchases feel unique.
From packaging upgrades to exclusive apps or
personal customer service lines work to increase the
perception of luxury.
Nike's most expensive product by far is the
HyperAdapt 1.0 sneaker. It's special in that it
can automatically lace up when you slip your
foot in. It's also special in that it does not come
in Nike's characteristic orange box. It instead
comes in a special, premium-seeming one, with
room for both sneakers laid flat, the charging
puck, and a little card with a phone number
reserved specially for HyperAdapt owners.
Any HyperAdapt owner can call that number
for service whenever they need, and they will
instantly get a live human on the phone for any
concern they may have.
