Marketing of Luxury Goods
The nature of luxury goods has a limited market to ensure exclusivity. The concept of luxury is based not only on the cost of the products but also on their quality. The perception of those goods is associated with the superiority of the brand as viewed by the consumers. The fact that few people can afford a certain brand makes it more valuable as compared to other non-luxurious products. The opulence goods market segments are usually small, while the purchasing habits and needs in the market vary. The aspect depends on the product since it may not satisfy the consumer’s needs based on preference and taste. Although luxury goods are exclusive to individuals of a certain social class, the pricing is usually influenced by the consumer-product relationships of the target clients.
The luxury goods are expensive and of high quality. For instance, Gucci, an Italian brand, is one of the most popular producers of such products. Gucci customers include celebrities, models, song and movie stars, and wealthy individuals. It is a popular fashion brand with a reputation for high-end, expensive, and exclusive goods. Gucci has diverse products such as bags, jewelry, gloves, watches, and sunglasses. Due to the reputation of the company and the fact that it sells luxurious goods, Gucci products are highly-priced. The prohibitive prices ensure that only a few individuals can afford the products, making them exclusive and luxurious. The pricing strategy differentiates the products, making them affordable only to the target group. Hence, considering that only a few individuals can afford those goods, their prices continue to rise.
Gucci has a social status in the world with designs that give the customer a sense of class. As an established fashion brand that handles expensive products, the company gives customers exclusivity. Another observation is that jewelry is placed on beautiful, colorful velvet under locked glass casings, revealing its sophistication and attractive designs. The display allows the customer to view the product, while the casing guarantees the security of those valuables.
Just like Gucci, Louis Vuitton (LV) is another prominent luxury brand in the fashion industry. The LV stores are similar to Gucci’s, with no price tags. In addition, both stores have highly trained personnel who offer quality customer service. The professional experience with customer care gives comfort to the clients while advising them on the best choices of the available products.
The absence of price tags on both brands ensures that only those who can afford the products show interest in buying, limiting the number of individuals who can own Gucci or LV products. Hence, this marketing strategy is effective in creating customer differentiation since it guarantees the exclusivity of luxury products and ensures that the consumers’ financial privacy is protected any time they make a purchase. Besides, placing the jewelry under a glass case gives the customer a clear display of the goods, protects the products from touching, prolongs its expository image, and offers security for those luxury items, giving the product a high status. Despite the high cost, the quality services offered in these stores influence the customer’s need to purchase more goods. Finally, the social personnel providing customer care services guarantees that the clients get value for their money by making their experience memorable in the store.