Some of the big luxury American brands are going back to what they’ve been best known for, and that’s being luxurious. For years now some of these brands have come to appeal to the more common crowd, which has hurt much of their image.
Both Michael Kors Holdings Ltd. and Ralph Lauren are making turnarounds. They are doing it by taking some of their products out of failing stores, as well as making people pay full price for their products. This has made people look up to these brands as luxury ones, which is where they always placed themselves in the market.
Luxury brands and perception of value
The two brands are also adding more to their lineup. Ralph Lauren is adding more limited edition styles while Kors has added 40 percent more to its lineup this season. And there’s more to it than just that: many of the brands are buying smaller brands and becoming multi-brand companies.
Very much like how Amazon has been doing, these brands are now doing the same strategy.
Luxury wear is always about perception. People have a certain set of perception for such items. One of those is that they are expensive. Having items at a discount could hurt such brands, with the perception of value having to remain at the elite level.
There are brands that still rely on discounts, but if these are upscale brands then such a tactic could hurt them in the long run.
While it is true that stopping such tactics might not be easy, people will again begin to see them as upscale brands and would more likely but from them again. It all goes down again to a matter of perception on how people see such brands.
The strategy of maintaining prices for high end products has always been good for such perception.
People are willing to pay for high end products since it gives them the perception of buying quality things.
Luxury brands know who their target audience are and as such market to those directly with high quality and high priced products. How else do you think high end brands would be able to compete in the marketplace? Post your comments below.