It is the dream of many an entrepreneur to sell a luxury product to the wealthy. Just think about the prestige, premiums and profits.
The problem is that it is also one of the toughest marketing jobs to succeed at. You don’t just switch on the marketing engine for the rich. For a start, they think very differently to the average person. The usual trick of offering good quality at competitive prices doesn’t work. Price is not a factor when you have serious money. Good quality makes no impact, as it is taken for granted. Neither does sufficiently wide distribution because they will courier it to where they want it.
Instead, what matters most is the brand. The story behind the product, the emotion, the uniqueness and the scarcity. You need to literally craft it out and spend significant time and money to communicate it to them. It’s a tough challenge!
A major issue with marketing to the rich is how difficult it is to reach them. They protect their privacy, not just in the physical world, but also in the digital world. They are far less likely to click on that Facebook ad or comment on your latest post. Do yourself a favour and go to Facebook and see who reacts to the branded content – the 50-something old lady with real money tends to stay away.
You don’t just launch luxury overnight. Rather you let it percolate into society. The greatest drivers of luxury are history (a track record) and scarcity – neither of which lends itself to the eager entrepreneurial spirit.
If you want to make a quick buck, rather aim your product at the mass market. This is where the eas(ier) money sits. Marketing something to the wealthy, can be an expensive mistake!