You might think that luxury brands are designed for and marketed to the wealthy. But that’s not always the case. There are a lot of reasons why luxury brands steer clear of high-earners.
Some people might think it’s because luxury brands don’t want to tarnish their image by being associated with the uber-rich. But there are a few other reasons why luxury brands avoid selling to the rich.
Target Audience For Luxury Brands
At its core, a luxury brand represents high-quality, exceptional products and services. It’s exclusive—not everyone can afford it. And it’s aspirational, meaning that people aspire to own or experience its products.
The thing about the rich is that they’re not the target market for luxury brands. Selling to the rich can do more harm than good. Why? For one, the rich are already buying luxury products. So as a luxury brand, you’re not offering anything new or different to them. Second, when you sell to the rich, you risk alienating your other customers—the ones who can’t afford your products but still aspire to own them. Ultimately, it’s about maintaining exclusivity and protecting the brand’s image and value.
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Exclusivity Is The Key?
You might think that selling to the wealthy would be the key to success, but the case is quite the opposite. Luxury brands make the majority of their profits from sales to the middle class and those who aspired to be in the middle class. By pricing their products just out of the reach of most consumers, luxury brands create an air of exclusivity. And by associating their products with high-class lifestyles and aspirations, they give consumers a reason to want them even if they can’t afford them.
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It’s no secret that luxury brands take a different approach when it comes to marketing and selling their products. They often focus their efforts on aspirational marketing, which is the idea of targeting customers who want to be like the people who can afford to buy luxury products.
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