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10 July 2023 • Resources

How to create a luxury brand: Tips and steps to launch your business

How to create a luxury brand: Tips and steps to launch your business

Dior, Chanel, Rolex, Louis Vuitton, Hermès... Do these well-known names in clothing and other goods appeal to you? These houses all have a history that's deeply rooted in consumers' minds. They inspire hundreds of thousands of people around the world with their luxury items and their brand image.

But these great brands weren't built in a day: it often takes a good deal of time, usually several years, to make a name for yourself and build your brand in the highly specialized luxury industry. Today, there are a number of ways to make your talent known to consumers and break into this niche sector, whether you want to focus on fashion, beauty, accessories, or another kind of product.

You too can launch your own brand and become a luxury entrepreneur. With a lot of hard work and a great branding strategy in place, follow all the advice and key steps that'll lead you to success in the creation of your project and stand out in an exciting environment.

Luxury brands: The specificities of this market

Prada, Versace, Armani, etc.: What qualifies as a luxury brand?

To sum up the key characteristics of luxury, a few words and phrases suffice: rarity, perception of exclusivity, dreams, excellence, brand loyalty, storytelling and, last but not least, an exceptional customer experience.

It's not enough for companies to raise their prices to be part of the luxury world: above all, their products, services, and brand must be unique, stand out from the crowd, and offer an unforgettable experience for customers that goes beyond the sale of products.

There are several key points that make up the specific codes of luxury:

  • the history, principles, and values associated with the brand;
  • the unique know-how and well-preserved craftsmanship in the manufacturing process;
  • the use of fine, high-quality materials whose origin and traceability are transparent; and
  • a one-of-a-kind, personalized customer experience, adapted and tailor-made for each customer.

The refinement and aura of the brand is going to create the positioning of luxury products. It'll also justify the expensive price tags.

How can you turn your brand into a luxury company?

Throughout history, there have been many different paths when it comes to successful luxury brands: there's no specific instruction manual for becoming a luxury company.

Some houses were founded several decades ago from a single boutique, a single craftsperson, before growing and becoming a luxury house. Other brands were launched on social networks before gaining recognition from the media and personalities in the sector, sometimes before winning competitions of excellence that enabled them to reach a new stage in their development.

Building a luxury company means being aware of the public, its expectations, and the environment in which you operate.

With digital technology, luxury has become increasingly demanding when it comes to the customer experience: using the latest technologies and the most sophisticated accessories, luxury is a figurehead for the best and most innovative in the world of marketing.

To be a luxury company today is to pave the way for new methods for presenting products, new ways of looking at the customer, and new sales channels. It's not just about entering the world of luxury; it's also about innovation when it comes to determining how to sell luxury items.

Fashion, beauty, jewelry, etc.: How much money do you need to create a luxury brand?

Luxury goods require the investment of money and energy to find the best materials, the best craftspeople, and the latest technologies. This sector requires special goods of unquestionable quality, meaning that it can be much more expensive to launch a luxury brand than one involving less pricier items.

It would be difficult to give you an exact figure before entering the luxury goods business. Nevertheless, before you set up your business, start contacting certain suppliers, craftspeople, and factories with whom you could collaborate, to get an idea of the costs involved.

What's certain is that you'll need a good amount of startup capital or a relatively substantial loan from your bank to be able to begin your adventure in luxury sales.

These elements need to be added to your company's business plan so that you can clearly define your project in this document, which is essential to your future development, particularly when obtaining funds from sponsors or banks.

How do you break into luxury goods? Starting a luxury brand

Know your target audience

Even before you create your first luxury items, turn your initial ideas into high-quality products, or start experimenting with logo design, you need to think about the people to whom you wish to aim these future items. It's up to you to create the ideal persona or target audience for the business you want to launch in your niche segment.

What are these consumers' buying habits, for example? What are their favorite brands? Do they prefer an in-store shopping experience or do they like to buy online? All this information will be vital in setting up your company's initial tactical actions and must be well researched beforehand.

Of course, you'll also want to know how old your target customers are, what their socio-professional category is, and what their background is. Taking the time to build this profile will serve you throughout the life of your luxury business. Never neglect this vital step!

Create exceptional, high-end products

Regardless of if you wish to start a clothing line or sell high-end skincare, makeup, or jewelry, it won't be a question of creating average products or buying goods of ordinary quality: you'll have to take all the steps possible and imaginable to create exceptional articles.

You can also work on developing a certain know-how to design your own products and thus offer limited editions made only with the finest materials to your customers. 

When you enter the luxury industry, there's no room for the average, and competing companies already know this: all your choices and all the elements of your business must be haute couture!

Determine what price to charge for the goods you sell

Figuring out the optimal price for the luxury products you plan to offer may take a bit of time, as it's important to strike the right balance between perceived value and profitability.

Setting a price that's too high may scare away consumers if they don't feel that your goods are worth it. If you price your premium creations too low, people may be more willing to buy your offerings, but you might not make enough money to earn a profit. Furthermore, people may consider a luxury product with a low price to be of not very high quality.

To design a strategy for your product pricing that'll attract consumers and ensure your profitability, start by conducting market research to understand the pricing landscape within your industry and competitors. Consider the unique features, craftsmanship, and exclusivity of your products. Evaluate production costs, including materials, labor, and overhead expenses.

Analyze your target audience's purchasing power and their perception of value. Consider positioning your pricing to reflect the premium nature of luxury items. Test different price points through A/B testing and monitor customer responses. Finally, be sure to regularly evaluate and adjust prices based on market demand, customer feedback, and profitability goals. 

Develop your brand identity, branding strategy, and storytelling

Every luxury brand needs to create a story around its brand, a precise story that justifies its entry into the luxury market, regardless of the specific niche segment.

This unique story, told to your future customers, will be the driving force behind your identity, but also the impetus behind the creation of your brand. Your values will help draw potential customers into your world, a world that'll likely be based on daydreaming and the imaginary, like all prestige brands.

Don't forget that the luxury sector is based on reverie and a certain inaccessibility: your branding and storytelling will help to create this magic around your products and services, to signify your entry into the world of luxury.

Get inspired by the countries of origin of your raw materials, the origins of the essences used in your first cosmetics range, or the historical inspirations linked to your ready-to-wear fashion collections, to create a message around each of your product offerings and position yourself very clearly in this competitive industry.

Find an original name for your own brand

Your luxury brand should have a name that matches your product creations, be they clothing, candles, makeup, or other goods. Simplicity will often work to help position you in the sector.

Don't hesitate to look around you and at your competitors to choose your name: a brand name is often made up of a single word or even a first name. Why not use, for example, your own first or last name as the basis for your brand? This way, you can prove that your brand is truly unique and belongs to you alone.

Logo, typography, font... Design a precise graphic charter

The way you present your company needs to be sharp and precise.

This requires a streamlined graphic identity, with a few bold colors. Forget about fluorescent, busy visuals, and fun, childish typefaces: take a look at some of the biggest brands in fashion and other luxury markets to establish a guideline for creating your graphic charter.

Don't forget that to maintain a consistent brand identity, only three or four colors are needed to create your signature or website content.

As far as the logo design is concerned, simplicity and minimalism often characterize luxury companies on the market. Choose a beautiful typography and rely on black and white for your logo. Sobriety and elegance will be the watchwords of your graphic charter!

Launch an online sales site

While many luxury brands were founded on the basis of a physical point of sale, we're now in an era where digital technology makes it easy to expand, whatever your sector of activity and niche segment.

For this reason, it's a good idea to launch your online sales site right from the start.

To help you in your adventure, it's best to use a high-performance solution that's optimized for your SEO, so as to stand out in the top results of search engines like Google.

That's why you should turn to Wizishop when creating your online store: with over 400 features designed to convert your site visitors and encourage them to buy, 50+ SEO optimizations, an ultra-powerful AI tool for generating a variety of text content for your site, ultra-personalized follow-up by expert ecommerce business coaches, and comprehensive online sales training, nothing will be left to chance to help you quickly position yourself in the luxury goods sector.

What's more, you'll never have to face your business problems alone: we'll support you every day, step by step, to transform your ambition into success.

Starting from as little as $40 per month, you'll have everything you need to build your online store; market and sell your luxury goods, be they clothing, perfumes, watches, jewelry, or other items; and stand out from other brands on the market!

Test WiziShop free of charge for 3 days to create your own online store, import your first product creations, and be well equipped to start your adventure with the best ecommerce solution around.

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Build a solid marketing strategy

As you can see, any successful luxury brand reaches the top thanks to an ultra-sophisticated marketing strategy featuring premium content.

Unlike more accessible brands, luxury marketing communication is done with finesse and subtlety. All communication is based on image and fantasy, while instilling a strong sense of exclusivity, always keeping the company's unique branding in mind.

Keep in mind that when marketing to high-end consumers, all your content must be of the highest quality. For example, although using social media in ecommerce is advantageous, you can't just share amateurish digital marketing content, as you might with a personal account on social networks, for example.

A teaser video one day, photos of the first collections another day, an article about the brand's history... In short, each piece of marketing content must be strong but also creative and exceptional, without ever going overboard.

If you want to begin building your presence in the luxury industry, there are many communications agencies that can help you in this content-creation process and in your marketing strategy, the backbone of your presence in this ultimate niche sector.

Win international competitions!

After a great deal of effort in terms of online presence and communication, many blossoming brands are being spotted by professionals in the luxury sector, particularly those linked to major companies and groups such as LVMH and Kering.

These groups organize competitions to recognize the designers of the year. Designers win prizes and the chance to sell their creations in internationally renowned shopping malls. This is their passport to the highly elitist world of international luxury.

The ANDAM competition is one of the most emblematic, and has helped introduce today's leading luxury brands to the eyes of the world. Don't hesitate to take inspiration from past winners to follow in their footsteps and, perhaps one day, become the new luxury star of the year yourself.

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