All that glitters might not be gold… but it sure can sell.
Oren John points out that luxury brands take 200% more operating profits than their lower-ticket counterparts and are proving to be recession resilient – even in this economy.
Luxury brands take in an average of 200% more operating profits than their mid-market counterparts.
And many are proving more recession resilient.
Here's my playbook for launching a new luxury brand: 🧵 pic.twitter.com/h0aYqH1Btr
— Oren John (@orenmeetsworld) December 3, 2022
Here’s what you can learn from successful luxury brands when it comes to staying profitable:
Product quality. Historically, it was hard to find manufacturers that had access to premium materials and top quality control, excellent communication, and so on.
It’s not like that anymore. You can source quality goods much easier today.
First, plan your design, budget, timeline, and more.
Then, present it to a manufacturer and request a few cycles of samples before you make a decision. In the long run, this will assure quality your customers will be in awe of.
Premium experience. It may seem counterintuitive, but you should never reduce prices if it means you’ll cut corners and provide sub-par customer service.
Your shoppers are willing to pay more if they’ll be treated better in return.
Also, consider making your brand more desirable by associating it with other popular brands.
You can do that by gathering endorsements and collaborating with creators to show your product in context.
Consistency. The biggest proof of brand quality is consistent execution over a long period of time.
Providing quality for years is what will set you apart from your competitors. So make sure your products remain reliable, and that you stay in the loop with new trends and expectations.
Design. How your brand “looks” is usually what makes it or breaks it – especially in the early stages.
Invest in product photography, brilliant website design, and ad creatives that resonate with your target audience instead of feeling like a “catch-all.”
What you’re creating needs to be timeless—or at least able to represent you for 10, 20, 30 years…
And there you have it. These key points are how luxurious brands stay resilient… and they may help you sail through headwinds.
And today, that’s a luxury in itself, right?