It almost happens by sheer chance how luxury brands are built, but it’s definitely possible to build one as a matter of an identified aim. What you’ll often find though is that it takes a pretty long time to get to a stage where the brand you’ve built is recognised as a luxury brand, possessing the all-important X-factor people are willing to part with a considerable amount of money to access.
By no means is this meant to be any kind of claimed blueprint for the construction of a luxury brand, but for anyone who has an interest in business, it will definitely make for an interesting exercise to explore the psychology behind the construction of a luxury brand. How have the big names in the luxury goods market managed to convince the world that they should pay what are otherwise insane amounts of money for what they sell as luxury goods?
Concerted business network construction efforts
The luxury goods market perhaps epitomises the core principles of what networking is all about. It’s all about joining a network of people and organisations who are involved in business as a concerted effort. This is how luxury bands are built – they associate themselves with celebrities and other aspirational figures whose apparent success has the masses associating their success with everything they endorse or appear to use themselves, such as luxury goods.
Building the brand name at all costs
In the earliest parts of building a luxury brand, the actual construction of the brand comes first, taking priority over pretty much everything else.
The probability of initially operating at a loss
As a result of the relentless, single-minded pursuit of brand construction, creators of luxury goods items are typically prepared to operate at a loss for prolonged periods of time. They’ll persist in getting their name out there and take long term brand recognition over a quick buck, any day.
Scarcity is scarcity
From the point of view of the targeted consumer market, the fact that a certain big name like Luis Vuitton limits the number of luxury good items such as the bags they put out makes for a legitimate case of the subsequent scarcity to be associated with the brand. For some reason this makes consumers psychologically predisposed to parting with a lot of money just to say they also have that Fendi or Chanel bag which only a limited number of other people in the world will ever have.
The Fear of Missing out (FOMO) is perhaps a relatively new acronym, but its fundamentals go all the way back to the very founding of these luxury good brands, like Louis Vuitton. For some reason, consumers want in on this appearance of success which is associated with being able to afford buying luxury goods.
Is it really all about quality?
NO! If the psychology behind the luxury goods market was all about quality, the lingerie range of the likes of Victoria’s Secret wouldn’t be so flimsy that you can basically only wear the pieces once or twice, then you have to keep up with the trend and get some of the latest releases…