https://www.waremakers.com/the-post/how ... t-guardian
I constantly wrestle with this myself - am I buying the brand, or am I buying quality? (The article concludes that people are starting to gravitate toward the latter rather than focusing on the label.) Here on BH the hot topic tends to be luxury cars but it can apply to almost anything.According to marketing professor, and luxury industry specialist, Vincent Bastien, the aim of the "luxury" brands is to create the highest possible brand value. They do this by following a particular set of marketing rules, including:
• Dominate the client
• Keep raising the average price of the product range
• Keep non-enthusiasts out
• Make it difficult for clients to buy
• Luxury sets the price, price does not set luxury
The client should be "dominated" by the marketing constantly reaffirming qualities such as "time, heritage, country of origin, craftsmanship, man-made, small series etc.," says Bastien.
luxury brands madison avenue new york rent fit out costs store money
Luxury brands spend exorbitant amounts renting and fitting out stores in prime locations around the world — such as New York's Madison Avenue.
This, according to the marketing expert, is how the industry can "command their incredible pricing power and margins." And it seemingly doesn't matter if the products are actually made in China or Transylvania. As long as the image of "heritage, country and craftsmanship" is continuously reaffirmed and nurtured, the prices can stay high. As Bastian says:
"The more [the product] is perceived by the client to be a luxury, the higher the price should be."