For luxury brands, differentiation is essential to maintain their premium image and value proposition, and to avoid commoditization and imitation. Some of the differentiation strategies that luxury brands can adopt are detailed as below:
• Product differentiation: Luxury brands can differentiate their products by offering unique and innovative features, designs, materials, craftsmanship, or customization options. Some luxury brands are known for their handcrafted leather goods, each of which is made by a single artisan and bears his or her signature. Some watch brands and manufacturers are renowned for their precision, durability, and pass-to-next generation relevance as they offer a variety of models and styles to suit different tastes and occasions. Some luxury fashion brands are famous for their iconic trench coats, which they constantly reinvent with new fabrics, colours, and patterns. • Service differentiation: Luxury brands can differentiate their services by providing exceptional and personalized customer care, before, during, and after the purchase. Some luxury fashion brands offer concierge services that can arrange travel, accommodation, and entertainment for their customers. Some provide beauty consultation services that can help customers find the best products and techniques for their skin type and preferences. Some jewellery brands offer a lifetime warranty and free cleaning and repair for their jewellery. • Price differentiation: Luxury brands can differentiate their price by charging a premium that reflects their quality, exclusivity, and prestige. For example, some automobile companies charge high prices for their cars, which are limited in production and highly coveted by collectors and enthusiasts. Some luxury fashion brands charge high prices for their clothing and accessories, which are made with the finest materials and craftsmanship, and are often endorsed by celebrities and influencers. Some Champagne brands charge high prices for their products, which are produced from the best grapes and aged for a long time and are associated with celebration and sophistication. • Distribution differentiation: Luxury brands can differentiate their distribution by choosing selective and exclusive channels that enhance their image and accessibility. Some luxury fashion brands sell their products only through their own boutiques and selected department stores, which are designed to reflect their aesthetic and identity. Some watch brands and manufacturers sell their products only through their own boutiques and authorized dealers, which are located in the most prestigious and affluent areas. Some luxury electronic brands sell their products through their own stores and online platforms, which are designed to provide a seamless and interactive experience.
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