How to Start Building Luxury Brands from the Ground Up

Building a luxury brand can seem difficult, but with a focus on what luxury customers want, and with the right marketing, forming a luxury brand is easy for anyone willing to do the work. Luxury brands are different from budget brands because luxury customers have more money to spend but also demand more for the money. Luxury customers want every aspect of goods and services to look and feel effortlessly high-end.

During the research and planning stage, brands often outline the key demographics of their ideal customers, including the customers’ age ranges, locations, occupations, interests and other factors relevant to the brand. Some brands go as far as naming their fictitious ideal customers because that helps the creators truly see the target customers as real people, allowing the creators to better tailor the brand to the customers. Brands that do not know who the customers are or what the customers want will fail in today’s competitive market.

Focus on the Quality

Luxury customers need a higher level of sophistication from goods and services than the average customer. If anything about the goods or services offered seems cheap, difficult or unsophisticated, the discerning customer will reject that brand as a luxury brand. Luxury customers often buy cautiously and will not invest their money if they are unsure about any aspect of the brand. Anyone who wants to build a successful luxury brand needs to incorporate sophistication, exclusivity and quality into the brand from the beginning. Brands communicate these factors to the customer through expensive pricing, high-quality services and materials and tailoring to the customers’ specific wants and needs.

Build Your Customer Base & Get Referrals

Many luxury brands rely heavily on referrals as a marketing technique. A testimonial from a similar customer or a referral is the best advertising because customers trust this type of marketing. The budget brand strategy of general social media marketing does not work for high-end brands. Luxury brands market to the leaders and decision makers among the ideal customers through social media and carefully generated leads. If the marketing tells the customer that the product or service is exclusive, luxurious and flawless, then repeat customers and referrals will quickly follow.

Finally, the adage that the customer is always right is the rule for luxury brands. Budget shoppers will tolerate some inconvenience to save money, unlike the luxury shopper. Customer service for luxury brands provides classy, accommodating and hassle-free service to give the greatest luxury to the consumer.

Chris Burch is a venture capitalist and founder of Burch Creative Capital.

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