02 Feb Five Reasons Marketers Fail in the Luxury Industry
The luxury industry is definitely reigning supreme these days. Everyone in and around the marketing arena wants to be involved in luxury. Everyone wants to be working with luxury brands, regardless of whether the big ticket lies there or not. And everyone wants to add luxuries to their business portfolios. In fact, it’s not only about the cash, but also about the extravagant lifestyle and exposure.
When it comes to the luxury industry on the marketing or business development ends, ego gets in the way of business sense and the market gets tougher by the day filtering out agents faster than ever.
Here are five reasons a lot of professionals or agencies do not make it in the luxury industry:
1- They approach luxury marketing the same way they approach regular marketing:
This tends to be the most important reason people fail in the luxury industry. Professionals come in thinking that they can market “anything”‘ using the same offline and online strategies; disregarding the fact that high tickets item need way more than an online push or an influencers’ event.
-And here’s my biggest pet peeve. I’ve had to work a lot with a few clients to change this perspective of theirs-
2- They don’t understand luxury:
You can never develop a market for luxuries if you haven’t experienced luxuries yourself. Period. Understanding the consumer end of luxuries rests a lot of being one; not necessarily all the way, but at least one way or another.
3- They are still consumed with the digital bubble:
Bummer, we know; but high and bespoke luxuries do not sell online. Online works for small luxuries and medium ticket items only; and influencers have a limited capacity to influence the HNWI.
-High luxuries do not sell online “yet” … They might, later on, and we need to keep up with the trends; and until then adopt hybrid strategies of targeted exposure and HNWI PR-
4- They don’t respect the past:
High end brands rely heavy on their long term relationships with a certain market segment, and newbies rarely understand that, thinking that modern strategies will somehow revolutionize luxury marketing. Well. Wrong. Most often than not, the secret lies in investing what currently works (while updating strategies incrementally to keep up with innovation).
5- They don’t understand the HNWI:
Not understanding the way High Net Worth Individuals thinking process and their consumer behavior tends to be the number 1 problem with most modern marketers. This market has a completely different mindset and mode of living. Understanding what HNWIs aspire to and how they relate to the luxuries they can easily afford is a tough homework very few people succeed in completing.
-I’ve been working at it for 9 months now and the learning process is forever underway-
Entering the luxury market is a task that needs months if not years of preparations. It is a business reserved to those willing to spend hours researching, communicating and flying. It is a business for the ambitious who are also ready for long nights, hectic days, endless coffee supplies and hours of entertaining with the clients.