Be a Snob
I am a luxury contrarian. I am proud of that. That’s because I know where and how the real money is made in luxury, and it isn’t where the pack is focused.
When a luxury brand comes to me with an open mind, we accomplish the extraordinary. I recently consulted with a major conglomerate engaged in a new acquisition. They’re going to focus part of their enlarged business on luxury and eliminate redundancies. I was told my advice will save them millions – and with a company that size, millions in savings flow right to the bottom line.
My advice to them was to learn where to act small, and where to become a snob. Many entrepreneurial luxury brands get this backwards. They are focused on extreme attention to the wrong things, and little attention to what will make them viable financially. Without giving it all away – that will cost you – let me summarize some of what I mean:
1. Ignore big luxury brands.
Big luxury brands focus on spending big money in many places, that smaller luxury brands simply cannot. In doing so, they lose the charm, simplicity, and personality that can be so captivating to clients when used effectively in their marketing. Polish the product but personalize the process.
2. Don’t obsess about your online presence.
You don’t need an award-winning online presence, though it should certainly be elegant and well-written. You don’t need to post endlessly on social media – in fact, you’ll stay in the minor leagues if you do. Focus on business fundamentals relentlessly. Get the right people in your universe, use the right messages, and offers, and close deals.
3. Don’t buy into “luxury is whatever you want it to be.”
This is a wave which has taken hold in luxury that many will regret. Yes, luxury is often driven by personal perception. I am all for expanding our view of luxury and what luxury can be. However, nothing of great and lasting value is universally appreciated by the masses, (except oxygen and clean water.) That means it is to your advantage to define what luxury is in your category. To have a business you must market and deliver it with extraordinary flair and make it so defined that your competitors cannot easily take your clients by labeling luxury, “whatever.”
4. Make money.
You cannot progress and grow if you do not make money. However, in luxury, this is often a hazy concept. The hope is that the beauty of the product will magically turn into a higher bank balance. Prosperity in your business must be more intentional. It comes from definition and certainty of purpose, understanding who and where the clients are, client alignment, and detailed client acquisition strategies. There also must be increasing and consistent volume in your marketing, and repetition of message. And it should all be measurable. Making money is the right way of thinking, backed up by a system.
5. Be exclusive.
Your luxury clients want to be in a special group, no matter what level of inclusivity the world talks about. Everyone has the potential to buy, experience, and enjoy the best of luxury, but not everyone has the taste, the inclination, and the means. Succeeding in luxury requires that you get clear on whom you are serving and recognizing your clients must remain convinced they are getting something special that others cannot easily attain. Never forget this underlying thread which must run through your business.
Need help refining your approach? Write me: info@andretaylor.com.
At Taylor Insight we help luxury and premier businesses excel and grow by attracting, retaining, and growing with affluent clients. We provide exceptional strategic, marketing, sales, and service guidance, and a portfolio of high-impact learning programs.
