How do you create a luxury brand?
Creating a luxury company? Many people dream of it... Especially when you consider that French luxury goods account for a quarter of global sales and that the international luxury goods market is worth €270 billion. A formidable creator of value, but also a sector full of opportunities and challenges. Codes, strategies, reputations and digital challenges: how do you become a good manager and launch a luxury brand that works, appeals and lasts? We tell you all about it.
What is a luxury brand?
The criteria for a luxury brand
The notion of experience: Luxury is the leader in customer experience. More than just a simple act of buying, it's about putting the customer at the heart of the process and instilling the brand's universe and identity well beyond the primary function of the products.
Personalisation: A luxury brand is always very close to its targets, and operates a highly sophisticated personalisation strategy.
Rarity: The very essence of luxury, a luxury product must be exclusive. This means selective distribution to stimulate interest, as well as high prices that reflect expertise and quality workmanship, as well as a certain positioning.
The importance of luxury brand positioning
Rarity, high standards, prestige... these are just some of the concepts that spring to mind when we think of luxury. However, beyond these well-known characteristics, there are a number of essential points that define a luxury brand and differentiate it from the mass-market segment. Firstly, the luxury brand is a sociological vector. It is intrinsically linked to social symbolism and the codes that flow from it. The brand's positioning is not simply based on the aesthetics and creativity of its products, but on a clearly established strategic branding strategy.
How do you create a luxury brand?
Market research and target identification
Before launching a luxury brand, it is essential to understand the market in which it will operate. Luxury is not a uniform sector: there are different categories - fashion, watches, cars, hotels, haute cuisine, etc. - with their own codes and expectations. An in-depth study of the market helps to identify trends, the players in place and the opportunities to be seized.
One of the key points in this analysis is defining the target market. Luxury is aimed at a specific clientele, often segmented into several profiles: the ultra-rich (UHNWI), premium consumers and new generations of customers attracted by experiential and digital luxury. Understanding their expectations, values and consumption patterns is essential if we are to build a brand that resonates with them.
A luxury brand doesn't just meet a functional need; it creates desire, emotion and a strong attachment. That's why understanding the aspirations of your target customers is fundamental. Are they looking for a traditional brand embodying heritage and craftsmanship, or on the contrary an innovative and disruptive brand? Are they more attracted by exclusivity and rarity, or by a more accessible and committed approach? These are the factors that will guide the brand's initial strategic decisions.
Defining an effective luxury brand positioning
Positioning is the foundation of every luxury brand. It defines what sets a brand apart, the story it tells and how customers will perceive it. Effective positioning is based on three essential pillars: uniqueness, exclusivity and consistency.
A luxury brand must first assert its uniqueness. It cannot simply follow trends; it must create them. Its DNA must be instantly recognisable, whether through rare expertise, unique aesthetics or bold innovation. Hermès embodies excellent craftsmanship, Tesla technological luxury, Chanel sophisticated timelessness. Each brand has its own distinctive territory.
Exclusivity is also a fundamental element. Not everything in luxury should be available to everyone. This means limited-edition collections, ultra-personalised service and carefully controlled distribution. The idea is to create a feeling of rarity and privilege, thereby reinforcing perceived value.
Finally, the positioning must be consistent across all points of contact with the customer. From storytelling to product design, communications and the in-store experience, everything must reflect the same vision of luxury. A misaligned brand that mixes contradictory codes loses credibility and struggles to establish itself in the market.
Success in the world of luxury requires cutting-edge expertise, a detailed understanding of the market and the ability to anticipate trends. Sup de Luxe's MBA Luxury Brand Marketing & International Management offers excellent training for those who want to master the codes of luxury and build a career within the major brands.
Differentiation strategy and brand values
In a sector where excellence is the basis, differentiation is essential if you are to stand out from the big established houses. A luxury brand must distinguish itself not only through its products, but also through the world it creates and the values it embodies.
A first differentiation strategy is based on innovation. Whether it's through new materials, revolutionary manufacturing processes or exclusive services, innovation makes a real impact. Brands such as Richard Mille in watchmaking or Rimowa in luggage have succeeded in imposing a new vision of luxury by focusing on technology and performance.
Commitment and responsibility have also become powerful differentiators. Today, luxury is no longer just synonymous with opulence; it also conveys meaning. Brands that incorporate strong values - sustainability, ethics, inclusion - build a deeper relationship with their customers. Stella McCartney in fashion, Chopard with its responsible precious metals and Guerlain with its commitment to biodiversity are perfect examples.
Finally, the customer experience plays a key role in differentiation. In the luxury sector, buying a product is an experience in itself. From in-store displays to ultra-personalised services, every interaction must be memorable. Some brands go even further by creating immersive experiences, such as private events, made-to-measure services or exclusive collaborations with artists and designers.
Choosing a strong name and visual identity
How do you find a strong, distinctive name?
Choosing a name for a luxury brand is a delicate exercise. The name must be evocative, timeless and able to stand out in a world where distinction and emotion are paramount. It's not just a word, but a symbol that conveys the brand's values and DNA.
A good luxury brand name is first and foremost memorable. It must be simple, easy to pronounce and memorable. Some companies, such as Chanel, Hermès and Cartier, opt for founding names, reinforcing an image of authenticity and tradition. Others, such as Bvlgari, Dior and Guerlain, opt for abstract or evocative names, playing on a poetic or conceptual dimension.
The importance of the graphic charter and logo
The visual identity of a luxury brand embodies an aesthetic, an emotion, an entire universe. Every detail counts, from the choice of colours and typefaces to the design of packaging and the staging of communications campaigns. A well thought-out graphic charter ensures consistency and immediate recognition of the brand across all its media.
The logo is often the first image a customer has of a brand. It must be simple yet powerful, elegant yet distinctive. In the luxury sector, logos tend to be minimalist, timeless and steeped in history. Refined typography, often in capitals, conveys a sense of prestige and rigour. Some brands incorporate monograms or distinctive symbols that reinforce their identity, such as the double C for Chanel, the horse for Hermès or the crown for Rolex.
Beyond the logo, the colour palette plays a key role in the perception of the brand. Deep, sober colours such as black, gold or midnight blue are frequently used in the luxury sector for their connotations of exclusivity and refinement. On the other hand, some brands have succeeded in imposing an iconic colour on their image: the flamboyant red of Christian Louboutin, the vibrant orange of Hermès, the blue of Tiffany.
How do you promote a luxury brand?
Storytelling and creating a brand image
In the luxury sector, a brand doesn't just sell a product, it sells a story, a world, a vision. Storytelling is at the heart of this approach. It involves recounting the origins of the brand, highlighting its expertise, craftsmanship and quest for innovation. Every great name in luxury has been built around a strong narrative: Coco Chanel and its revolutionary spirit, Louis Vuitton and its heritage of travel, or Cartier and its fascination with royalty.
Brand image also requires attention to the smallest detail: a refined communication tone, polished visuals and a coherent scenography across all media. The aim is to create a myth, a feeling of belonging, an experience that transcends the act of buying and touches on the dream.
Digital and social networks: an essential presence
For a long time, luxury brands have kept a low profile on the digital scene, but they have now adapted to the new codes of online marketing. Today, a luxury brand cannot ignore Instagram, TikTok, YouTube or even WeChat in China. These platforms have become essential showcases for disseminating aspirational content and reinforcing proximity with a connected clientele.
The key to success? Impeccable visuals, meticulous staging and content that makes you dream. The digital campaigns of luxury brands favour immersive formats: cinematic videos, interactive experiences and powerful visual storytelling. Some brands go even further, offering online exclusives, personalised experiences or collaborations with digital creators.
- Press relations and influence in the luxury sector
The media and influential personalities remain the pillars of luxury brand promotion. Press coverage in top-of-the-range magazines such as Vogue, GQ or Numéro confers legitimacy and a prestigious aura. The major fashion houses nurture their relationships with journalists by offering them exclusive experiences, such as private fashion shows or studio visits.
Digital influence also plays a key role. Collaborations with celebrities, models and specialist influencers help to reach a targeted and engaged audience. In the luxury sector, influence is distinguished by the meticulous selection of ambassadors: they embody elegance, exclusivity and the world of the brand.
Final Steps Before Launch
Production Testing and Customer Feedback
In luxury, perfection is an absolute requirement. Before going to market, it is essential to test each product to ensure flawless quality. This involves a strict control phase of materials, finishes, and packaging. Prototypes are carefully evaluated, whether internally by experts or through panels of select customers, to identify any necessary adjustments.
Customer feedback plays a key role at this stage. Private events with loyal clients or industry opinion leaders provide valuable insights before the official launch. This approach not only ensures a perfectly refined product but also helps create a sense of exclusivity around the brand, further enhancing its high-end image.
Distribution and Commercialisation Strategies
Luxury is not sold like a mass-market product. Each brand must define a distribution strategy in line with its positioning. Three main options are available for luxury houses:
Flagship boutiques, which embody the brand’s essence and offer an immersive experience to clients. A flagship store in a luxury capital (Paris, Milan, New York) serves as an iconic showcase.
Selective retail points, through high-end department stores (Le Bon Marché, Harrods, Bergdorf Goodman) or exclusive concept stores, allowing brands to attract an international clientele.
Digital retail, now an essential channel, even in luxury. E-commerce platforms must deliver an online shopping experience as refined as in-store, featuring ultra-personalised service and sophisticated presentations.
Creating a luxury brand is a demanding challenge, where every detail, from the name to distribution, must be meticulously planned. In a sector where excellence is the norm, consumer expectations are constantly evolving, driven by new aspirations: a search for authenticity, sustainable commitment, and digital transformation of the client experience. However, these challenges also present opportunities. The rise of experiential luxury, the growing influence of new generations, and the integration of innovative technologies provide bold brands with a new and unprecedented space for expression.