Marilisa BarbiericBusiness Consultant, Luxury & Digital Transformation.
Contemporary artisans are increasingly interested in marketing their products and services to affluent customers in order to grow their business. This may be because these consumers are: less affected by uncertain economic conditions. But being unfamiliar with the luxury market can lead to challenges. If you hope to reach this new market, it is important to know the best strategies.
Scale and grow with luxury customers.
The most efficient and effective new revenue streams are found within your existing customer base. And by asking the simple question, “What else can I sell this customer?” Learning to grow and scale your business means understanding how luxury customers operate, their priorities and their requirements. Use tactics such as networking, emails, and phone or video calls to learn more about your target audience. In this way you determine which growth opportunities you can pursue.
Consider Treeline Terrains, a Vermont-based company that has developed a technology to turn any wood product into a 3D map. In scaling up, the company struggled to find customers who agreed with the wholesale order pricing structure. Wholesale buyers expected wholesale discounts, even if they asked for customization. So it was difficult for Treeline Terrains to grow – until the company realized it could pursue enterprise customers.
As Treeline Terrains specialized in custom maps, it knew how to manage custom requests from business partners. The first corporate customer was luxury car manufacturer Porsche, which ordered custom wall art for event attendees. By offering customers the opportunity to offer a thoughtful, personalized promotional gift, Treeline Terrains has more value. In addition, because promotional gifts themselves are a luxury business, Treeline Terrains could solve the pricing problems because companies are willing to pay the price, even when ordering in bulk.
Find the voice of your luxury brand.
Finding an authentic brand voice in the luxury world means more than just sounding chic or exclusive. It helps you stand out from the crowd and connect with the audience. To achieve higher brand equity and pricing power as a luxury startup, you need to employ effective strategies to deliver the value high net worth individuals seek. Start by clarifying who you are as a brand and who you want your customers to be.
The craft tableware brand Bauhaus understood that being an emerging luxury brand is about building a personal relationship with customers and giving their experiences. By targeting a niche market of affluent customers, a unique business strategy had to be pursued that creates an atmosphere of exclusivity. For the launch of Bauhaus’s first collection, it partnered with a brand studio and copywriter to strengthen its identity, brand voice and website design.
Work with a consultant who understands the luxury market space.
When you want to enter the luxury market, perfecting your brand strategy is the key to communicating with your new target audience. Working with a consultant can help speed up the process and ensure you avoid common mistakes when entering the luxury market. Consultants can provide insights and personalized guidance that will help you achieve your growth goals.
Textile company Vacilando knew it had to learn new strategies to keep sales stable and sustainable during the pandemic. However, if you’re into handmade craft products, changing the pricing structure for growth and scalability can be challenging. While targeting a new segment of luxury customers seemed like the right thing to do, Vacilando knew it wouldn’t be an easy task. The company decided to hire a consultant to help build a structured approach and strategic roadmap with actionable steps. This enabled Vacilando to change perspectives and learn to connect with interior designers, art consultants and design professionals to raise awareness of his products.
Building a profitable business and strong brand is all about your ability to know and resonate with your customers. It can be challenging in the context of luxury, because the rules of the game are not just standard business practices. So for a new brand or craftsman, learning the language of luxury customers can equate to stability and longevity and help them survive recessions, unemployment insecurity and high inflation.