Selling premium products is very different from their ordinary counterparts. Retailers and brand managers entail a specialized approach to marketing techniques and brand management. The objective of luxury retailers is to persuade consumers to pay more for their merchandise which is quite difficult to do. Their selling and advertising strategies must build up confidence on product quality and trademark. The key is to formulate effective luxury products merchandising.
Colors in Luxury Retail Marketing
When it comes to visual merchandising, one of the first concerns of storeowners is the use of premium colors for display. Identify these colors at the outset. In color psychology, Blue is preferred for logos and represents reliability, monetary security and security. Some of large companies that use blue in their emblems are the following:
- Wal-Mart (the biggest physical retailer worldwide with more than 6, 000 shops)
- FaceBook (with around 1.13 active users)
- AT&T (a telecommunications conglomerate in the United States)
Yellow is among the premium colors that captures the fascination of the public quickly just like McDonald’s use of this color in its logo. Meanwhile, Orange is regarded as receptive or pleasant in business branding. Both Payless (discount footwear retailer) and Hermes (high-end retailer for handbags and fashion accessories) use this color to convey affordability.
Of all premium colors, Purple is known as the classic representation of wealth and nobility. It also denotes feelings of imagination, fantasy and wisdom. Beauty trademarks frequently use tinges of purple in their respective logos. The violet logo stresses that the brand is luxurious and creative.
Many marketers consider Red as one of the premium colors. Yet, it is often described as complicated. It highlights sales and enthusiasm. Most brands blend red with milder shades like yellow, white and orange. The goal here is to stimulate potential customers without creating the perception of closing down the business. For example, Netflix, a multinational entertainment corporation based in the US, combines red with white and black to produce a vivid look appropriate for the motion picture industry.
Reaching Out to Clients
Luxury products merchandising is crucial in reaching out to target markets but this is not easy. Sellers of opulent brands must understand first the meaning and workings of the luxury marketplace. It is necessary to consider all facets of marketing management.
Luxury strategies are meant to formulate the highest brand worth as well as power of pricing by controlling the components of spectacle. These include the country of origin, legacy, craftsmanship, high-status clientele, and many others. Such a strategy was created originally for the widely-defined posh market. It is very effective only for this category and not the other markets. On the other hand, the premium approach focuses on the retail philosophy of “Customers who pay more will surely get more.” The fashion strategy is a distinct business model which emphasizes that fashion is able to sell by being stylish or trendy.
Visual Merchandising and Premium Goods
Of course, luxury retailers must not overlook the aspect of visual merchandising for premium/luxury products. Retailers need to observe carefully the behavior of its target shoppers before planning their visual merchandising strategies. Visual merchandisers should work closely with marketers to determine customer interaction with regards to visual displays. The outcomes may vary in the outcome of merchandise sales. Three of the possible techniques are repetition, iconic or traditional, and focus on premium colors.
Visual merchandising is vital since it does not only maximize sales but helps vendors of luxury items to create a unique brand and business identity. These set them apart from competitors and sellers of mainstream products.
In formulating the plan for visual merchandising for premium/luxury products, examine factors such as target customers and what these people look for in a certain product. It is possible to adopt the “Rule of Three” approach which is simply to arrange goods in sets of threes (Good, Better and Best) to catch the shopper’s attention. It works well for small items and as well as mannequin displays (apparel and accessories) because of the asymmetry factor.
Another great concept is called “Pyramid Principle” which is appropriate for triangular merchandise displays. The biggest item is placed in the center while the smallest are outside which resembles a pyramid. The display will not turn out as uninspiring or monotonous. This method in visual merchandising for premium/luxury products is suitable for high-end department stores.
Price points are also important. Advertise the brands and highlight the values so customers will take a good look at the displays carefully. Products must have small price tags or stickers next to each item that customers can see.
Indeed, luxury products merchandising is an art and science at the same time. Many factors come out for perfect marketing and selling. The key is to figure out what works well and what does not.
All luxury brands must spell out their positioning; Unique Selling Proposition or USP; and, competitive advantage. After this, it is imperative to convey their merchandise, price and distribution. Uniqueness counts for upscale products. It is not the comparison with competitors that matters. Luxury is the manifestation of tastes and preferences as well as creative distinctiveness. The brand provides any luxurious product in the market timelessness, elegance, authenticity, and permanence. Luxury products are not comparative but unmatched or unrivalled. This is the essence of luxury products merchandising.
Retailers under this category must present their brands and merchandise to the world in a very compelling manner. They must analyze the logo, trademark, commodity, and benefits to users with intent. The importance of premium colors gain comes out. These colors will leave a long-term impression and bring out reactions, comments, criticisms, rejection, and acceptance.