All luxury brands should take notes on Nike’s transformation into the premium marketplace… Especially, “those emerging luxury brands” should try to understand what it takes to connect with high-end consumers. Okay, I know exactly what you might be thinking “this is Nike” so they would have no problem entering the luxury marketplace? Take lessons from Nike that even seasoned luxury brands are missing right now.
Nike As A Luxury Brand
Nike’s women-only store in California, photo credit NIKE
Explaining how Nike is achieving success in the luxury brand arena… Nike started focusing on trading up their customers. Say “you” have an product offering, be it affordable luxury or maybe not even a luxury product in your mind. Remember to not overlook lifestyle offerings as a luxury entry. Most luxury brands value their products as a lifestyle. Watching the World Cup we can all agree that Nike for sports is a lifestyle that only the best of the best is affiliated. So like Nike, you too should start focusing in on premium marketplace opportunities.
Recently, Business Insider provided a breakdown of Nike’s premium focus areas. Detailing how Nike also transformed their retail experience to represent luxury shopping. Where Nike also plans to focus more will be women’s business. Which it is anticipated women’s business will drive $7 billion in revenue by 2017.
Tech Fleece Aeroloft, which combines fleece and a goose down fill for snuggly winterwear like parkas and windrunners…photo credit NIKE
The shift that Nike made was to specifically focus on premium apparel… Does that sound familiar ? Well, it should because this theory is the guiding point for how luxury brands make their revenue by focusing on premium apparel. You have to be able to understand trends in the marketplace and evaluate those opportunities for products offerings that present openings in the marketplace to trade up. These are the strong elements for creating a sensational and “sustainable” luxury brand.