There are various types of business competitors in the luxury market. They all have their own competitive strategies and their own unique core skills or features that make them stand in the market. If you look at one of the best luxury hotels in Tasmania, you’ll see that they don’t use the same type of business structure as Kmart. That’s because their clientele is different and so, therefore, their communication is different. It all comes down to your desired market.
When you look a little closer at commercial markets, you’ll notice not every market is the same. The market for groceries, hair products and beauty products varies a lot. I am not restricting the list of all available markets to three, but these are some examples of the many markets out there. The markets are widespread across industries and systems; such as monopoly, oligopoly etc. And you need different kinds of strategies for different markets. If we use the example of the hotel mentioned before, you could perhaps use the strategy of offering exclusive Hobart hotel packages for returning customers. That would make your customers feel special and give them a great deal – while maintaining your exclusive luxury branding.
When it comes to luxury brands, I would advise a few steps to be adopted in order to grow the success and scope of the business:
- Step 1: Identify the market
It is very essential to recognise the type of market you’re dealing with. If you aren’t the dominant competitor, you need to figure out your strengths and weaknesses to improve your business and make it stronger. No customer is ever ready to pay a higher amount to a brand which is not yet dominant or trustworthy. It takes the earning of goodwill to build trust among the customers, hence such business should conduct a ‘SWOT analysis’. In the SWOT they should identify the strengths, weaknesses, opportunities and threats to the business. This will help you to figure out when to hold, invest, harvest or divest the business. Such brands should craft a proper vision, a clear mission and subdivided strategies to achieve the desired goal in order to climb up the competitor’s chart and become the dominant competitor.
- Step 2: Create a website and launch advertisements
It is very important to reach a large audience in order to create value for your money and products. In order to reach that desired public, one can create an attractive and detailed website which describes the business and various details related to it. This needs to be an accessible platform that is easy to use but looks great! The content holds a lot of power, hence the content should be strong and convincing. Content creation is an art and the luxury brand should, therefore, hire some creative content creators to draft the perfect marketable content which represents your business.
Advertisement is a strong medium to use when communicating about your businesses. That’s why various social media sites should be used to share details of your business and products.
Luxury brands aren’t the cost leaders, but they are the distinct kings. Their products are expensive and of high quality, and one shall invest such a high amount in your product only if one gets quantifying assurance, i.e. certified the guarantee of the quality products.
It is extremely necessary to maintain the quality (and provide offers periodically) in order to ensure a high amount of customers visiting you with trust based on the goodwill of the business.
The packing and distribution of such products should also be taken into account. It gives the first impression, which is seriously important. Therefore, all the products should be made and shipped with elegance, delicacy and long-term assurance. The products should also be provided with certain policies of guarantee and warranty that the customer can rely on. This can also increase your sales volume. Proper service centres with functional staff should be ensured so that 24/7 service is open to the customers.
The luxury brand should prioritise customer satisfaction above all else, and that way build a loyal customer base (and fans) who will not switch to other brands.
Also, the elimination of luxury brand competitors is essential. In order to continuously challenge your competitors, you need a variety of products and a vibrant range to attract a large number of customers.