How luxury brands make the worth of the high price tag?

 

  Luxury brands have been rapidly growing in popularity, and this trend is expected to continue in the future. Even giant companies like Samsung have smaller market capitalizations than some luxury brands, such as Moutai, a Chinese liquor company. Moutai's net income is only about 10% of Samsung's, but it is still considered to be a rapidly growing company with a high valuation. Another example is Hermes, a luxury fashion brand. 

 

  So, how do luxury brand persuade consumers that their products are worth the high price tag? This essay will explore how they lure consumers to their expensive products, focusing on their marketing strategies. 

 

  One of the secrets to luxury marketing is to make people consume little things. For example, Hermes might display a 300$ scarf in a window where people pass by. This is relatively expensive for a scaf, but it is not as expensive as other luxury products, such as bags. People passing by might see the scarf and think that they can afford to enter the store and buy it. Once they are inside the store, they are more likely to be tempted to buy other, more expensive products. It doesn't mean they buy it at the moment but at least they might have a desire for it.  

 

  Moutai uses a similar strategy by launching ice cream that contains a small amount of the alchol used in their drinks. People who taste the ice cream may develop a desire to try real Moutai drinks someday.  

 

  Another key strategy used by luxury brands is to create a sense of exclusivity. They do this by limiting the availability of their products and by creating a luxurious shopping experience. For example, Hermes sotres are often located in upscale neighborhoods and have a sophisticated atmosphere. The sales staff is highly trained and provides personalized service. 

 

  Luxury brands also use celebrity endorsements and social media marketing to reach potential customers. They partner with celebrities who embody the brand's image and values, and they use social media to showcase their products and lifestyle. 

 

Friend 1: Did you see that new Hermès scarf? It's so cute!

Friend 2: I know! But it's so expensive.

Friend 1: Yeah, but I think it's worth it. It's such a good quality scarf, and it will last forever. Plus, it's from Hermès, so it's a status symbol.

Friend 2: I guess you're right. I might have to get one.

Friend 1: You should! And did you know that Hermès actually uses this strategy to lure consumers into their stores? They put a $300 scarf in the window so that people will walk in thinking they can afford to buy something. But once they're inside, they're more likely to spend more money on other things.

Friend 2: That's so smart! I never would have thought of that.

Friend 1: I know, right? Luxury brands are really good at marketing. They also use celebrity endorsements and social media to make people want their products.

Friend 2: Yeah, I see celebrities wearing luxury clothes and accessories all the time. It definitely makes me want to buy them too.

Friend 1: Me too. But I think it's important to remember that luxury brands are all about creating a sense of exclusivity. They want you to feel like you need their products in order to be special or successful. But the truth is, you don't need luxury brands to be happy. There are plenty of affordable and high-quality products out there that will make you look and feel your best.

Friend 2: You're right. I need to stop worrying about what other people think and focus on what's important to me.

Friend 1: Exactly! And if you do decide to buy a luxury item, make sure it's something that you really love and will cherish for years to come.

Friend 2: Thanks for the advice! I'm going to keep that in mind next time I'm shopping.