http://www.maniacsolutions.com/marketing-luxury-products/
Luxury Brands Putting new millionaires!
Background: According to Merrill Lynch – Capgemini Annual 12 World Wealth Report, the assets of High Net Worth Individuals (HNWI) increased to $ 40.7 billion. Average HNWI Wealth was more than $ 4 million each for the first time, the world of High Net Worth population now stands at 10.1 million people. India, China and Brazil have a higher growth of the HNWI population.
Although these figures are pretty amazing in itself, the actual number would be much higher than many millionaires in particular those of high-tax jurisdictions not reporting the true value of assets that can be spread worldwide and difficult to trace.
It's official: As in response to this, the luxury industry is returning after a short break. According to an article published in Forbes, referring to the global consulting firm, Bain & Company Luxury Market 2012 update, the luxury goods industry is nearing a full recovery in 2011.
The study and the report is written by Claudia D'Arpizio, a partner in the firm's office in Milan and covered some 220 luxury brands, including leather goods, fashion, jewelry, alcohol and cosmetics companies that serve high net worth clients, or those with assets of at least U.S. $ 1 million. The study concluded that spending on luxury is expected to reach 230 billion dollars per year by 2012. New millionaires in countries such as China, India, etc, no doubt, be carrying the load.
The rules of the game: While some proven gold consumption standards and marketing research are maintained, there are some that have to be especially recognized. Rich seem new to believe in the highest – "If you've got it, you have to be able to prove it … or else you not really got it "
So in terms of the new rich, this basically means that the whole point in buying a luxury brand in particular would be associated with the brand image rich millionaire is capable of transmitting to the right audience.
Of course, some people think that because of the current poor economy, the rich now want to be discreet and subtle about his wealth. Okay, so that the rich are new questioned this view is totally wrong.
Why luxury brands?: The rich luxury brands to sponsor a variety of reasons. Although most prefer to simply say they buy the product quality, the real reasons are more on a subconscious level – such as peer recognition and approval state, the admiration (envy), ie not so rich would-be rich, etc.
Marketing Luxury Brands: Brand Marketing afford to deploy a wide variety of techniques to keep their brands firmly in the minds of your customers … current and future clients, in particular. While relations and publicity in the media selected has been the pillar, market experts have also taken the sponsorship of special events for decades … but mostly in name only.
However, in recent years, a depressed economy has forced many luxury goods retailers to be more creative and aware of the costs to reach their target audiences.
Historically, marketers of luxury brands such as liquor, perfumes, watches, fashion and Cosmetics have always followed a luxury pricing strategy to maintain a sense of exclusivity. This strategy aims to limit the availability of products, markets Price-ups, etc. The idea was that their marks had to be guarded against the devaluation of the mark.
But luxury brands face increased competition from new entrants and an economy that is present additional challenges, the risk of becoming irrelevant or God forbid! Be considered normal is very real. Brands now they're reinventing luxury to a new generation of potential customers – the new rich. They are moving beyond advertising, which is available to anyone have a budget, taking into account only, limited availability of sponsorship of events and activities that are easily identified and, obviously, with the rich and famous to differentiate their products.
Building brand image through sponsorship: It takes a lot to build and harder to keep the luxury image of an active mark in the minds of customers. And this is vital to the success of any luxury brand. There is no better and more cost effective way to build and secure that the image by aligning with regular events organized by the same luxury luxury-oriented organizations.
Take, for example Richman Clubs International millionaire. Your Platinum Corporate Membership Charter is limited to only 100 worldwide, and reported the world's most expensive private members club. This particular class exclusive membership offers much more than just a membership club with benefits throughout the world that offers no other club in the world.
These members offer holders exclusive rights to thirty years of corporate sponsorship rights to the horse races and other events millionaire, at no additional cost – a probably value well above the cost of membership. Of course the club has probably other classes of members do not necessarily enjoy these free sponsorship rights.
Luxury brands to provide support at both international and country specific events such as the Inter-World Richman, Horse Racing, Polo, Racing, Golf, etc challenges. In addition to assistance site, these events indirectly reach a world wide variety of both public and the rich richer through wannbes television and Internet coverage of the event – so prividing sponsors with the media at no additional cost. It would cost a fortune to acquire considerable media coverage through advertisements.
The point is that, apart from just the media, sponsorship is a unique platform that has exclusive, specific and strong personality traits and identifying both direct and subliminal influence with the rich and the aspiring rich. Selected events characteristics similar to a trademark provides a very powerful vehicle to attract attention, and maintain brand image. In addition, the lifestyle of customers of these events "- ie, expensive, exclusive limited access etc greatly enhance the attributes associated with luxury brand over time.
Innovative Building Brand Relationships: Luxury brands should try to stand out among its competitors. Therefore, the atmosphere in which to engage their customers luxury brands involved must match the exclusivity of the brand and lifestyle that seeks to represent. programs provided hospitality and successfully activated leave a lasting impact on the main customers of ad-laden, high gloss images in magazines with limited distribution lifestyle – a medium that lifestyle brands have traditionally supported for years. In the use of lifestyle magazines, is probably more cost effective for launch in the co-sponsor events or programs subsidize entertainment rather than advertising directly to them.
The New Rich. Are they different?: The money is not that – is old. It has its established habits and favorite brands. It is a question rooted and less peer pressure or the height of the Jones. Sad but true … money is not an endangered species, and worst of all is to buy less and less. "To survive and grow, the luxury brands market need for the new rich. "
Unfortunately the same people who are responsible for placing and maintaining the image of many luxury brands have set aged with their brands. Old – but not necessarily in terms of biological age … but in terms of philosophy and mentality. What worked before may not work well as well … leaner and competition and hunger is just around the corner
In general, buyers of luxury brands are used to being pampered, but are also used to access the best games, entertainment and sports events. His experience threshold is much higher than the average fan. The new rich want all this and more … and most important conditions for them.
For example, a great view from the suite of a luxury hotel would be an experience most unforgettable. For many consumers of luxury brands, is an average experience. But for the new rich is more. They want everyone to know they can afford the luxury of staying in the luxury suite. The view is an added advantage.
A new strategy for effective marketing: Event sponsorship offers single platform, non-competitive to bring truly unique and memorable experiences for consumers of luxury … and in a manner he or she wants. Perhaps the experience has to be a bit exaggerated, and perhaps the average investment per guest will be higher than the entertainment event of the regulars, but when you are selling luxury to the new rich, pampering the client just that much more worthwhile investment.
For more information on opportunities sponsorship of luxury brand in BMI Richman organized events, please contact the author.
About the Author
SteveCo IPA is a Verbal Identity and Internet Publicity Consultant servicing clients in a wide range of industries from Millionaire Clubs to Relaxology Centers.
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