How to build a luxury fashion brand from scratch?

Every major luxury fashion brand that we see and crave to purchase today started as a small business. One of the main reasons for these businesses to succeed is the extreme passion the founders had for improving their business. Building a luxury fashion brand is a dream for many youngsters, especially girls. Although it sounds glamourous, it isn’t an easy task though. Creating a luxury fashion brand requires a great deal of hard work, dedication, and patience to succeed just like any other business. Unlike in the past, the internet boom has made it much easier to build your luxury fashion brand and capture customers from all over the world by doing it the right way.

Why should you build a luxury fashion brand?

A luxury fashion brand allows you to earn super-profits in the long run. Although it may take a while to cross borders and capture markets, the luxe element in your product enables you to charge premium prices from high-end customers who have more purchasing power. They wouldn’t think too much before spending on something they desire. Therefore, it’s easier to make a sale at a greater profit if the product is superior.

The perfect example for this is, high-end fashion brands such as LVMH and Rolex recorded soaring sales figures that were above expectations once economies resumed after the coronavirus hit. While many people around the world are facing difficulties with job losses and pay cuts, it seems the high-end customers haven’t lost their appetite for luxury goods.

Another reason you should opt to build a luxury fashion brand is to benefit from loyal customers. If your product is tailor-made for a specific audience, you could benefit from loyal customers and word-of-mouth marketing. Looking at Gucci for instance, the company started by selling leather equestrian gear to the horse-riding community and quickly gained popularity for its top-notch products that weren’t available from other sellers.

Already owning a luxury fashion brand allows you to boost the initial stages of a new product through the existing channels, and easily reach the desired customers because the established brand already holds credibility for the new one. Therefore, expanding your portfolio will be much easier. For instance, if you are already selling luxury handbags, your newly created slippers could be easily marketed because your loyal customers will trust you and try your new product because of your established brand’s reputation.

What defines a luxury brand?

Luxury brands operate differently from ordinary brands. From manufacturing to pricing, marketing, and customer services, these brands use unique strategies that make them stand out. Speaking about manufacturing, attention to detail plays a major role when luxury brands create their products. They use the finest materials and skilled craftsmanship to make long-lasting offerings that appeal to the eyes right away.

Moreover, luxury brands do not compete on price. You would hardly find high-end fashion items on sale or marketing campaigns that highlight price. This is because the customers feel the business is trying to get rid of a product that doesn’t meet the brand’s standards, which gives a negative impression on the overall brand. Moreover, high-end products are made with zero errors as I mentioned earlier, which is only possible if they don’t focus on cutting costs. Luxury brands usually price their products based on their value rather than pricing their products based on the market rate, which is the reason you find luxury fashion items ridiculously expensive. A higher price also adds exclusivity to the product if it is done the right way.

Luxury brands make use of some of the most effective marketing methods. One such tactic is by limiting the output. Doing this creates a sense of urgency for the customer, making them focus on getting their hands on the product as fast as possible rather than considering price factors. High-end brands communicate with their designated customers through exclusive channels. Instead of using mass marketing methods such as TV commercials and posters, luxury brands make use of lifestyle magazines, influencer marketing, and online ads that are targeted specifically at their potential customers.

Finally, high-end brands have taken customer satisfaction to the next level by offering services that grab the customer’s affection towards the brand. For instance, they allow you to customize the product with your personal touches, although it’s going to cost you more. Exclusive clients are also offered VIP services such as flying to the customer’s location with the inventory to allow them to do their shopping from the comfort of their home.

How to build a luxury fashion brand?

Find your niche

Finding the right niche decides your brand’s popularity, and is crucial because you need to offer something that has demand to expand in the future. Products that have higher demand tend to fill a gap in the market, and it’s difficult to specify a type of product, as different people have different ideas based on their perspectives. For instance, you must be having an idea to introduce a shirt design that could be worn as casual and formal. If your product solves the issue of having too many shirts in the wardrobe and looks good at the same time, people will try it out, creating a new trend. A good example of finding a profitable niche is the Kith Mercer pant. New York-based lifestyle brand, Kith introduced the jogger pants in 2011 which sold out in no time. The owner noticed that people liked one of his altered pants with elastics, and started asking him about pants, and he got the idea for his latest product. Therefore, the best advice I could give is to create your product based on something you are passionate about and find a way to present it profitably.

Know your potential customers

Another importance of having a specific niche is it helps you stay focused on what exactly you are going to make, and to whom you are going to sell it. With infinite ideas out there, it’s very easy to get distracted when you try to implement every design that comes to your mind. Therefore, picking a niche that has potential, and your interest will allow you to pursue a long journey in this business. Knowing your customers helps you to specifically cater to your target audience, and it makes the marketing process much easier when you know what and how to address your potential customers. For instance, if your product is targeted at teenagers, using social media to promote the product would be a better option than advertising in lifestyle magazines

Luxe your brand

A luxury brand offers products that are of high quality as well as a luxurious feel. Therefore, you must ensure your brand reflects elegance at every touchpoint of the customers, starting from designing the product till it reaches the customer’s hands. Speaking about the engineering of the product, you should make sure your product offers its fullest purpose and is of high quality because quality matters a lot if you want loyal customers. Therefore, consider hiring the best craftsmen or do it yourself if you are highly skilled. Otherwise, outsource production to an experienced third party and work closely with them. Either way, choose the best option that allows you to manufacture the items without flaws.

Another critical element to enhance the luxe feeling is packaging and design, which includes the catchy brand name, your elegant brand logo, and your choice of elegant colors. You don’t have to think too much about this as you could simply hire someone online to come up with creative ideas for your potential fashion house. Looking at some of the luxury brands like Gucci and Armani, they are named after their founders and their logos are simple designs that are easy to remember.

In addition, the package design is yet another critical element that reflects your brand’s nature. For example, if your product is eco-friendly, using a package made from recycled paper would be ideal rather than wrapping it using a polythene bag. Packing exclusive items like silver jewelry could be in boxes with some striking accents such as magnetic closure or any other minor details that bring a luxurious feel. These are just examples to help you understand the theory, but you could use your unique ideas to bring out the luxe. However, remember not to flood it with too many details as it would make it look tiring.

Sell your items exclusively

Once you have completed the product’s appearance, it’s time to sell it exclusively. Before it’s put on the shelves, you should decide on a suitable price. Because it’s a high-end product, lowering the price too much is a bad idea because customers might perceive the product position incorrectly. High-end products aren’t sold everywhere. Therefore, you must choose a selling method that is convenient to the customers, and that doesn’t lower the brand’s standards.

The easiest and most practical method to sell your products as a beginner these days is through the internet. All you need is a professional website that looks elegant and has a successful marketing approach. Having a good-looking website is pretty much the same as owning your very own store. For fashion brands, Instagram and Pinterest are great platforms to showcase your portfolio by regularly posting high-quality pictures that make people go ‘WOW,’ and eventually sales. You could also make use of influencers to promote your products to specific demographics. After running your business for some time, you could see if your product has demand and consider starting your own flagship store in malls or partner with bigger stores to place your shelf.

Don’t forget customer satisfaction

As I mentioned earlier, the relationship with customers affects a luxury brand’s success more than inferior brands. This is because your niche has a limited number of customers that are shared among your competitors, and they come to you specifically seeking satisfaction that they won’t be willing to negotiate on. Therefore, you must make sure your customers are well taken care of by providing them with top-notch service from the very beginning. You could consider offering perks like personalization if it is possible for your type of product. However, since you are a beginner in the luxury fashion business it’s not that you must offer VIP services like bigger brands. You could simply start by having flexible return policies or an extensive quality check.

Another mistake most online-based businesses make is they don’t reply to inquiries immediately. Look, to build a luxury brand and get loyal customers, you should always prioritize your quality of service whenever someone comes across your brand. For instance, your website should load quickly, you must reply immediately or ASAP, and handle them professionally. All of these minor approaches show the customer that you are a dedicated luxury brand without you having to tell it.

Final thoughts

As a new business, opting to build a luxury fashion brand is a great approach to survive in the competitive business world, as you don’t have to compete on price. Although price doesn’t take the biggest role in high-end products, you must remember to fulfill all the other key elements such as customer satisfaction and creating a high-quality product to be in business. It might be challenging to maintain all the aspects of your luxury fashion brand all by yourself. But hey, it’s business. You must hustle to build an outstanding brand and prepare an interesting success story.

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