Navigating Challenges in the Luxury Market: Lessons from Successful Brands
Every brand, whether luxury or not, is going to face challenges, especially now that people are more conscious about their purchases and when so many markets are saturated with competing brands.
Let’s take a look at how luxury brands are navigating current challenges.
Growing and maintaining a loyal customer base
One challenge many luxury (and really all) businesses may face is growing and maintaining a loyal customer base, one way to do this is by connecting with consumers on a deeper level through storytelling. You can learn more about the role of narrative in luxury branding here.
John Lewis is a British brand that operates high-end department stores throughout the United Kingdom, selling luxury brands such as Chanel and Charlotte Tilbury. People often love the John Lewis yearly Christmas adverts and it’s often, if not always, because of the role of storytelling and the emotions that their ads provoke. Check out a few favourites here and here.
In the second example, not only does it use storytelling to create an emotional connection, but it’s also an opportunity for the brand to introduce a cause that’s important to them. Corporate Social Responsibility (CSR) is becoming more and more important, in fact, according to one report, 77% of consumers feel motivated to support socially responsible companies.
Ethical and Sustainable Options
CSR extends beyond philanthropy and can challenge businesses in many aspects. In 2024, it’s not just about creating quality products. In addition to wanting brands to take a stand on important causes, many consumers also want sustainable and ethical options. So how are luxury brands navigating this challenge?
Fast fashion clothing retailers such as Shein and H&M remain popular due to affordability (among other reasons such as size inclusivity), however consumers across all generations are now willing to spend more for sustainable products and for many, this may mean turning to lower and higher end luxury products.
I recently came across a sponsored post from Coach’s sub-brand, Coachtopia and while I first stopped mid-scroll because of the fun branding and product designs, I became more interested when I dug into the brand a little more.
So how is it different from the Coach many of us know? Coach has long been known for their leather goods (i.e. purses). Now, the designers have used their years of expertise to create leather goods with a “circular” design and fashion system in mind. This means they’re designing products with recycled, repurposed, and/or renewable materials, such as leather scraps.
While I can’t speak to the quality and craftsmanship of the designs, I think it's a great example of a luxury brand addressing the desire for sustainable products.
So, let’s round it up, what lessons are we taking from these brands and examples?
Look for ways to connect with your customers through storytelling
Find ways to focus on Corporate Social Responsibility, for example, through philanthropy or ethical and sustainable practices.
Want to know more about marketing as a luxury brand? Check out our latest blogs!