How luxury brands do marketing | 24 Anti-Laws of Marketing

Summary

This episode of 'Fashion Brief' delves into luxury marketing strategies, distinguishing between luxury and premium brands. It highlights the unique 'anti-laws' of luxury marketing and how brands like Louis Vuitton redefine luxury. The video explores the importance of craftsmanship, the role of advertising in building brand awareness, and the value creation in luxury goods. It also touches on the significance of brand origin and the preference for enthusiasts as customers. The episode teases further analysis on Gucci's shift towards a luxury strategy under Alessandro Michele, inviting viewers to stay tuned for more insights.

Takeaways

• 👜 Gucci is considered a luxury brand, especially under the creative direction of Alessandro Michele, moving towards a luxury strategy.
• 💎 Luxury brands are dream builders, not just high-priced items, and their value comes from the brand's positioning and strategy, not solely from price.
• 📚 The book 'The Luxury Strategy' by Vincent Bastien and Jean-Noël Kapferer is a key reference for understanding luxury brand management.
• 🛍️ Luxury brands follow 'anti-laws of marketing', with 24 specific rules that sometimes are adapted or redefined by leading luxury brands like Louis Vuitton.
• 🔍 Premium brands like Hugo Boss differentiate themselves by offering more for a higher price, focusing on functionality and benchmarking.
• ⌚ The appeal of luxury goods, such as mechanical watches, often lies in craftsmanship rather than just functionality or accuracy.
• 🎨 Luxury brands use advertising to build brand awareness and create an approachable dream, rather than to directly sell products.
• 💰 Luxury brands set the price as a reflection of their value, and an imagined higher price can create additional perceived value.
• 🚫 Luxury brands lead the market and consumers, not the other way around, often going against traditional marketing practices.
• 🌟 Celebrities are kept out of luxury brand advertising to prevent them from overshadowing the brand's image and values.
• 🏛 Luxury brands are closely connected with art, often choosing classical art that suggests timelessness over popular trends.
• 🚫 Luxury brands aim to attract enthusiasts who fully embrace their values and may intentionally limit accessibility to maintain exclusivity.

Q & A

Is Gucci considered a luxury brand or a premium brand according to the transcript?

The transcript suggests that Gucci is moving towards a luxury brand strategy, especially with the new creative director Alessandro Michele, but it does not provide a definitive answer and promises further analysis in future episodes.

What are the 'anti-laws of marketing' mentioned in the transcript?

The 'anti-laws of marketing' are a set of 24 marketing principles specific to luxury brands, which are contrary to traditional marketing practices. The transcript does not detail each of these anti-laws but implies that not all may be applicable to current luxury brand strategies.

What differentiates luxury brands from premium brands in terms of marketing strategy?

Luxury brands focus on building dreams and are not comparative in their positioning, whereas premium brands operate on a 'pay more, get more' strategy with an emphasis on functionality and benchmarking against other brands.

How does the transcript describe the role of advertising for luxury brands?

The role of advertising in the luxury context is not to sell directly but to build brand awareness and showcase an image that represents the brand's spirit, often without featuring the product itself.

What is the significance of the country of origin for luxury brands as discussed in the transcript?

The country of origin is significant for luxury brands as it adds to their perceived authenticity and heritage. Luxury brands often maintain a strong connection to their origin to uphold these qualities.

Why do luxury brands avoid using celebrities in their advertising according to the transcript?

Luxury brands avoid using celebrities in advertising to prevent the stars from outshining the brand itself. The focus should be on the brand and its values rather than the celebrity.

What is the relationship between art and luxury brands as discussed in the transcript?

The transcript suggests that luxury brands have a close connection with art, often seeking to be curators of taste and gravitating towards timeless classical art rather than popular art.

What type of consumer do luxury brands prefer according to the transcript?

Luxury brands prefer enthusiasts who wholeheartedly share their values. They aim to keep non-enthusiasts out to maintain a select and dedicated consumer base.

How do luxury brands create value for their products, as mentioned in the transcript?

Luxury brands create value by setting their own prices, raising prices annually, and making products seem valuable through marketing strategies that focus on dreams and non-accessibility.

What are some of the 'don'ts' that luxury brands follow according to the transcript?

Some 'don'ts' for luxury brands include not testing, not seeking consensus, not looking after group synergies, not pampering customers' wishes, and not replying to rising demand.

How does the transcript describe the importance of the brand itself in luxury strategy?

The transcript emphasizes that in luxury strategy, the brand itself is everything. Luxury brands aim to lead the market and consumers rather than following them.