How to Position a Luxury Brand

Patek Philippe has it right, according to Allen Adamson, managing director of the New York office of Landor Associates. This maker of high-end timepieces (don’t call them watches!) knows exactly how to position a luxury brand. In its long-running series of ads, the headline asserts: "You never actually own a Patek Philippe. You merely take care of it for the next generation." Although this campaign began long before this recession, its philosophy couldn't be more relevant to companies marketing a luxury brand in today's belt-tightening economy. That is, they should not be trying to get consumers to make a purchase but, rather, to make an investment. And, to succeed at this, they must treat their clientele (dare we say customers?) precisely like they are making an investment. An investment is made with a raise of the hand that a consumer trusts in the long-term value of an entity, be it a financial entity or that of a material nature. It is also trust that, as a result of this vote of confidence, the consumer will receive a return on this investment, be it in monetary performance or, in the case of goods and services, product performance and longevity. What's more, in making an investment in a brand unattainable by most mortals is the unspoken agreement that everything associated with this brand will be top-notch. Looking at Forbes' list of the the best and brightest purveyors of luxury products, it's clear that there is genuine awareness of what it takes to be, and stay, an "investment brand." These companies, among them Louis Vuitton, Hermes, Chanel, Porsche, BMW and Mercedes Benz, know that keeping consumers of their goods happy and loyal means providing a brand experience befitting ownership. They also appreciate that, requisite to their marketing, is word of mouth. And to fuel positive word of mouth among the well-heeled, especially in these competitive times, means the highest bar for quality and customer care must be raised even higher. Success as a luxury brand today means maintaining tighter control over every element of the brand experience than ever before, from the design and manufacturing process, to the distribution policies (no outlet stores, please) to the ambiance of the retail environment. Equally important, surprising and delighting the customer should not be considered an extra, but a must have. Hermes sales associates, for example, will not only take the time to show women as many gorgeous silk scarves as they'd like to see, but take the time to patiently demonstrate the many different techniques for tying these scarves. Ritz-Carlton, the luxury hotel group, has what it refers to as "wow stories," shared with all personnel, in which hotel staff members explain how they were able to, yes, "wow" a guest with particularly distinctive service. Another example is Hartman luggage: people swear by this brand not just for its fine detailing, but for its exemplary customer care. Whenever a handle comes loose or a zipper needs replacing, one sends it back and it's returned, beautifully refurbished, good as new. How else do you manage an investment brand, be it jewelry, automobile, scarf, or handbag in these challenging economic times? You appeal to those most committed to your brand and you concentrate on products and services that will yield your greatest return on investment. In the fashion category, this means ensuring your merchandise is both forward-thinking and classic. Coco Chanel recognized, as do her present-day designers, that timelessness cannot be underestimated when it comes to clothing and accessories. If, on the other hand, you have the enviable role of marketing the automobiles that inspire envy, you ensure that the expectations of your most exacting customers are exceeded from engineering to showroom to after-care. And, in all cases and categories, keep in mind that there are plenty of blogs and review sites out there for the well-off to sound off on their luxury brand experiences. If you have something expensive to sell, make it worthy of its price. The fact that we're living in what some call "new normal" times, does, however, up the ante. Those with the ability to spend big are going to think a bit more than they did before when pulling out their platinum or titanium cards. If you're marketing a luxury brand, you've got to be able to justify the investment being made by these folks to the nth degree. Attentive personal service is simply a cost of entry, as is attention to quality in manufacturing and retail. The action we recommend is that you treat your "clientele" as though they were making an investment in your brand, and not just purchasing it. Make it something they can care for and enjoy until they're ready to pass it along to the next generation.