How do you create your own luxury brand?

Luxury is a world that attracts many designers. It offers brands for a discerning clientele in the face of stiff competition.

If you follow one of our training courses in Bachelor's and Master's programs at ISAL PARIS, it's because you want to pursue a career in the luxury goods industry.

How do you create and develop a luxury brand? How do you stand out from the crowd and propose a strategy that works?

What is a luxury brand?

Against a backdrop of pronounced geopolitical change, the luxury goods market has demonstrated unprecedented resilience in 2023. According to international strategy and management consultancy Bain & Company, the value of the market could reach between 530 and 570 billion euros by 2030, around 2.5 times its value in 2020.

This growth is due to demographic and societal factors. The number of customers continues to grow, and is expected to reach 500 million by 2030.

This meteoric rise is reshaping the luxury goods landscape, driven by younger, more demanding consumers. Indeed, by 2026, Millennials and Generation Z are expected to account for 75% of buyers of luxury goods.

So how do you define a luxury brand?

Crafts craftsmanship is the very essence of luxury. It's the transmission of know-how, a guarantee of originality and authenticity.
Exclusive Luxury brands create a unique customer experience. It's a community of buyers based on shared values and ideals.
Innovation : a project owes its success to constant innovation to win over its customers.
Sense of time The brands are both contemporary and timeless.
Aesthetics and design A brand needs to have a unique, compelling design.
Relevance Brands have to fit in with customers' lifestyles, and are tailor-made.
Heritage brands connect with their customers through their stories and trade secrets.

To achieve luxury status, a brand must be exclusive, high-end and offer an unforgettable, personalized customer experience. The luxury brand has a strong image with an emphasis on craftsmanship, attention to detail, innovation, design and aesthetics.

Such brands have a prestigious reputation, an ancestral history and are associated with a luxurious lifestyle. They are known for their timeless or avant-garde style.

The luxury market

Luxury is a sector that knows no crisis. Market giants include major French groups such as LVMH and Kering. According to estimates by Statista Market Insight, 3 luxury goods sectors are expected to report rising sales worldwide up to 2028: jewelry, leather goods and perfumes.

To date, fashion remains the leading segment for Bernard Arnault, Chairman and CEO of the LVMH luxury group. Leading the way are the Dior, Louis Vuitton and Kenzo brands. Although other haute couture houses such as Gucci and Versace stand out, it's France that dominates global fashion. Every year, Paris Fashion Week, an event that brings together the industry's biggest players, is considered the world's most important fashion week.

With such high visibility, designers have to reinvent themselves to surprise consumers and stand out from the competition. Traditionally, physical stores account for the largest share of the luxury market's value, but other sales channels and business models are emerging. In 2022, the value of the online personal luxury goods market was estimated at 62 billion euros.

Designing an effective digital and marketing strategy is essential for successful online sales.

Launching a luxury brand

Creating a luxury brand is a step-by-step process. Many brands have seen their projects come to fruition on a shoestring budget, so here are a few tips on how to get started and create your own clothing brand:

Understanding the market Knowing the market for a brand is essential if you are not to lose part, or even all, of your investment. Whether you're selling clothing or jewelry, understanding who your potential customers are is important. Once you've defined your target, the business development and lead generation can begin.
Product search What type of products to sell? Luxury second-hand? Men's or women's clothing? The income of the target audience must be taken into account to meet their expectations.
Identify a niche market When creating a brand, finding your niche market is an option. You'll have a specific clientele, affluent enough to generate sales.
Developing an authentic brand customers are indulgent when it comes to the arrival of new luxury brands. Invest in a trusted brand that conveys your passion, credibility and inventiveness.
Delivering a true product experience Product quality is a must in the luxury sector. If products are of poor quality, you can lose your clientele to the competition.
Reduce costs as much as possible Building a luxury brand on a limited budget requires financial discipline. You need to find clever ways to raise funds and finance your investment, but also save as much as possible so that you have more money to devote to the commercial aspects.

Creating a luxury brand is an ambitious project. The brand must convey a story, a defined identity, good online visibility and meet the demands of high-powered consumers.

The most successful professionals are those who demonstrate rigor and high technical standards. They are usually graduates of fashion, management, luxury goods and marketing schools, such as ISAL PARIS.

Brand image definition

The identity of a luxury brand includes logo, graphic charter and storytelling. Once you've defined your target, it's time to design a branding plan.

Brand design The choice of design is crucial for a brand. In the luxury sector, a logo needs to be minimalist and sober, while at the same time presenting distinctive elements to set it apart from the competition. The design is unique and distinctive. The use of symbols is favored, as our brains memorize an illustration much more easily than a word or phrase.

Elegant, unique, legible, original... The logo must convey a strong message that strikes at first sight, using striking typography and colors.

When developing the design, make sure that the logo and design are compatible with each platform used (social networks, website, offline branding).

Packaging Packaging: product packaging is a marketing lever, conveying the brand's story. When customers pay a high price, they expect packaging to be of outstanding quality. It must be aesthetically pleasing and functional, and must highlight brand image.
Brand guidelines These are rules established to ensure excellent communication. They present the visual details, the corporate tone, the color palette, the logo, the images. They guarantee brand consistency on every platform. What's more, a brand's tone and voice are essential if consumers are to remember you.
Storytelling Storytelling is an essential communication technique for connecting emotionally with consumers.

It allows you to :

introduce the luxury brand name to the world,
convey product information in a fun and engaging way,
create an immersive user experience with a defined universe,
influence consumers,
create effective advertising campaigns,
strengthen brand awareness,
create an authentic, human brand image.

Creating a business plan

During the setting up a companyThere are several elements to consider. Among them is the business plan. This is a document that outlines the project as a whole and its expected development over the first few years of activity.

It is drawn up after a market study and a decision on the legal form of the company.

The business plan is fundamental. It's a communication tool that's essential for convincing future partners or players to finance and join the project.

So here are ten tips for making it happen:

enhance the value of the team,
present the added value of its product/brand to the customer,
develop a strategy consistent with the expectations of the target and the business model,
mention potential difficulties and risks,
Clearly present the project in accessible terms,
be synthetic,
explain and justify figures,
write one or two summary pages,
adapt your business plan to the person you're talking to.

Promote your brand

In recent years, companies have had to adapt to the phenomenon of digital transformation, and luxury brands are no exception. The three main objectives of companies offering high-end goods are: website optimization, content promotion and influencer marketing.

Here are a few steps and tips to help you launch your own fashion brand or luxury product:

Using social networks Engagement on social networks is essential for any luxury brand seeking to build its reputation. However, it is essential to preserve a sense of intimacy and uniqueness in one's online presence. With the development of luxury brands on the InternetAs a result, more and more customers are becoming aware of brands' offerings and communication methods. New customers, notably Millennials and Generation Z, have emerged and are contributing to the company's success.

Buyer behavior influences the marketing plan. Digital marketing strategy must take into account the characteristics of your target audience, and prioritize the channels through which they are most likely to engage.

Choosing your promotional strategy Some forms of advertising are more effective than others. Every element on your website or social networks must convey the notion of "high-end". It's important to bear in mind that media like Facebook, Instagram, YouTube and SEO-optimized blogs will deliver the most fruitful results over time.
Optimizing the brand's website Having a website is essential to the success of any marketing strategy. It's the most important promotional tool, given the growing number of customers who use the web for research. Positioning your site at the top of search engine results is essential for increased visibility.
Use paid advertising Sponsored advertising is a common way for luxury brands to interact with their customers. They use a variety of social media channels to get their message across to consumers, depending on their location, language and device.
E-mailing campaigns You'll be able to convert them into customers via email marketing, even though not all visitors are buyers. You'll gain insight into their buying habits, such as the types of offers and items they're interested in.

To ensure the success of your business, you need to surround yourself with qualified professionals who know the ins and outs of brand building and promotion. Many management, communications and digital marketing schools offer courses dedicated to the luxury sector. For example, the merchandising training at ISAL PARIS is ideal for create a brand and make it evolve in today's world.