Key Characteristics of Luxury Brands
High Price Point
I know this sounds silly, obviously a high-end brand has a high price point. But, it actually is a differentiator. Sometimes, just having a high price point can make someone compelled to buy something. It sounds a little ridiculous, but if you’re able to back your price, then it’s going to work on the right customer.
Design-Driven
Arguably, the most crucial characteristic is that luxury brands are design-driven. Think fashion, makeup, cars, hotels, watches. All of these things where design matters – the style is the selling point. The design translates not only to the product but to the brand as a whole.
It’s incredibly rare to find a high-end product/brand that does not prioritize design. Those that don’t are an exception to the rule. Design is a differentiator – it’s what makes your product and your brand stand out. And not just any design, an investment in good, high-quality design.
Quality
To say another key quality is quality might seem a little silly, but it’s true. Now, there are many brands with high-quality products, materials, and processes (or expertise or experience if they provide a service). In reality, some of the luxury brands aren’t that much better than average, but they focus on quality. They are known for having quality, and that alone is a characteristic of a high-end or luxury brand. You can charge more for quality because it’s going to last longer, it takes longer to create, and it’s a more refined craftsmanship-driven process. However you want to justify it, you can charge more for better quality.
Exclusivity
Now, I don’t believe that all premium brands have to have this, but it is a common characteristic. It’s a status symbol, only attainable for a select group of people. Now, you’re probably thinking of the super-wealthy, the 1%, but this can translate to all kinds of people.
Think of something like a backstage pass at a concert that’s accessible to a broader range of people. There’s exclusivity there; not everyone gets one and gets to experience it. Or even the limited release of a product – only a few people get to have this special item.
Badge Value
Badge value is that status symbol: it’s something you want to rep. When you see people wearing Gucci flip-flops or rocking their Louis Vuitton bags – they’re proud, want to show it off, and essentially want to be a brand ambassador of what that badge value says about them. Luxury and high-end brands make people feel good about themself. These brands have become a symbol of success, power, culture, and that is something that you only attain after years and years, but it is a product of the brand you have built.
Niche Audience
Luxury brands are not for everyone (but not in the way you think!). I don’t just mean that they’re exclusive or expensive; rather, they’re not trying to appeal to everyone. They don’t market to consumers who can’t afford their products. They know very clearly and specifically who their audience is, and that’s who they go after.
Lamborghini is famous for saying they don’t do commercials because their audience isn’t sitting around watching tv (or something to that nature – you get the point). Not only is it clever and pithy, but it’s also true. They know where their audience is, and they’re not worried about those other people who can’t afford to buy their products.
