Luxury branding refers to a brand's special place in the market, including its perception of prestige, premium quality products and services, and unique characteristics that set it apart from competitors. Luxury brands usually target well-off audiences that can spend more money for products or services associated with refinement and elegance.
Luxury brands may not appeal to everyone, and it is essential that consumers recognize this from the outset. Consumer brands focus more on functionality while luxury brands aim to form emotional ties between them and consumers - this may mean appealing to commercial heritage, alluding to deeply held values or honoring craftsmanship passed on through generations. It could even include creating exclusivity: Ferrari requires applicants undergo an application process so only top drivers may acquire one of its models.
Luxury brands must strive not to look alike their competitors; therefore, they typically feature an instantly recognisable pattern or logo. Louis Vuitton has used their signature monogram design since 1858 - this strategy has made them synonymous with elegance while helping their consumers build personal narratives about being Louis Vuitton customers.
Assuring an exclusive feel is also accomplished through other strategies, including limited availability and strategic partnerships. For instance, luxury jewelry brands often collaborate with fashion designers to release limited-edition collections as a means of increasing sales while giving their customers an exclusive feeling.
