The ONE secret brands can learn from Luxury

Luxury stands spot-on at the zenith of brand distinction, personifying the branding discipline in its finest essence. The ethereal within luxury is a powerful growth driver, nurturing customer loyalty and affiliation beyond premium subscriptions and rewards programs.

During the past two decades, the luxury industry has benefitted from exponential growth, where the market for personal luxury goods, considered the ‘core of the core’ of the industry, almost tripled with a strong increase succeeding the financial crisis in 2008. A universe foreign to most and usually associated with high price labels, luxury operates differently making it worthwhile for us to study its DNA composition.

So what is the most important thing we can learn from luxury brands?

A total obsession with their Raison d'être.

Luxury brands play some aspects of the game in reverse mode. Instead of the business driving the brand, it is the brand that drives the business. In other words, financial success is merely a consequence of a well-managed business ethos, where the main determination is the business mission. Luxury brands embody the talent and vision of inspired creators and their dream to represent the absolute greatest in their specific field. It is the expression of a higher purpose if not the ambition to accomplish a place in history through an on-going quest in pursuit for excellence. Luxury strives for perfection, where only the best is tolerated.

Luxury has also been built with blocks of strong cultural connotations, accumulation of shared meanings, rituals, norms, traditions and symbols. For example, Louis Vuitton’s luggage pieces are a symbol of freedom and travel; a journey of self-discovery, world exploration and search for the meaning of life. Their ethos: “the art of travel”.

Another example is when you buy a Hermes bag, you know that someone poured their heart into producing this ONE piece. The piece has meaning, it has purpose, and it stands out amongst all the other similar products you may own.

The most evident brand-luxury brand comparison is how Lexus took Sakichi Toyoda’s philosophy of ‘Customer first, dealer second, company third’ and took it to the next level. Lexus’ value proposition pretends to treat each customer as they would a guest in their own home, by having the finest dealer body in the industry.’ The brand pretends to be the best since its initial notion.

Core-identity.

The emotional qualities behind the brand philosophy make their offer unique and non-substitutable. This is due to the tangible and intangible, rational and emotional qualities originating from the use of evolved human skills from idea to execution. This also makes the brand authentic and not merely a brand promise that is hard to keep. Alfred Dunhill once said: "It is not enough to expect a man to pay for the best, you must also give him what he has paid for." Differentiation and offering value propositions with real honesty is the key to brand success.

People not only buy your product, but what you stand for.

People consume your philosophy and are attracted by a shared passion and appreciation for your offer. In fact, this passion makes connoisseurs be immediately attracted to your brand. This deep-rooted fixation on a common purpose becomes a self-propelling mechanism that as Markus Kramer, Aston Martin’s Global Marketing Director from 2010-2013 says, ‘drives innovation, great product, fulfilled employees and loyal customers.’ He also mentions that ‘Luxury brands offer not only strong cases in branding lessons, they also offer deep insights into the mechanics of how to activate on passion and build a network of like minded people around it for the benefit of greater and better products, healthier margins and both happier staff and customers.’