For luxury brands the value of an high-end offering is associated closely to the perception of worthiness. What a consumer is willing to pay is the value of their loyalty perception to the luxury brand. A connection that is more psychological and created by heritage purpose. For this very reason a luxury brand’s story is the single most important factor that drives revenue earnings and demand in the marketplace.
Photo credit Chanel
Whenever we chat with a potential client about luxury public relations representation the first thing that comes up today is “how do we use press to increase our price points?!”
What that immediately expresses to me is that they were already thinking about “increasing their price points” before they ever contacted us. While some luxury industry professionals debate and dispute that raising price points is going to hurt luxury brands down the road. I don’t think that an increase in price points for luxury brands is a bad strategy “only” if they also focus on increasing their brand awareness value at the same time.
Increasing Luxury Brand Prices
As a result, luxury brands including Hermes and Louis Vuitton have been marking up prices over the past few years, as rising stock markets, improving home values and an overall stronger economy make the rich even richer.
photo credit Aston Martin
So, if the rich are getting richer now might be the primary time to target and attract more customers to buy luxury goods! We know that ultra wealthy consumers are splurging on luxury travel and super luxury cars. This is where personal luxury goods can focus on brand awareness to create a lifestyle demand in the marketplace. Sometimes luxury brands forget that luxury public relations is how they actually communicate with their target audiences. Stop thinking the relationship goal is to target the “luxury media outlet” such as luxury blogs, magazines, etc. Keep in mind they are not buying from you but the consumer will and you can build a brand loyalty lifetime relationship. The luxury brand has a story to tell and the luxury media outlet runs on news.
It’s not just an increase in price points that can drive more revenue for luxury brands. If luxury brands would focus more on delivering their messages in the marketplace to desired target audiences (those who could afford to buy) they would also drastically improve revenue earnings across all platforms.
photo credit Balmain
The rich are eager to buy luxury goods and “price point is simply not a factor” all is needed is emotional persuasion to make it happen. That’s what really good luxury public relations solves by delivering strategic planning and approach for how luxury brands are perceived in the marketplace.
The center feature is in innovation for luxury brand story telling and creative pitching promotion approach for media exposure that is a medium to reach desired exclusive target audiences.
If you would like luxury public relations assistance for an high-end luxury offering or personal luxury goods please contact us via postmaster@