Why Are Luxury Brands Still Highly Profitable During Covid. This French Consultant Explain

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(Newswire.net — February 16, 2021) —

The invasion of Covid into the world came with an unbelievable shock. It became a global pandemic and a public health crisis affecting the global economy and financial markets. There was a significant reduction in income, a rise in unemployment, and disruptions in the transportation, service, and manufacturing industries. It was clear that most governments in the world underestimated the risks of rapid Covid 19 spread and were mostly reactive in their crisis response.

On March 11, 2020, the World Health Organisation(WHO) characterized Covid 19 as a pandemic, pointing to over 3 million cases and 207,973 deaths in 213 countries and territories. Businesses in early 2020 shut down due to this pandemic. Despite the consequences of Covid 19 to the economy, other businesses still survived and remained profitable to the owners. Luxury brands are one of the businesses that are highly profitable during the Covid 19 era.

Tony Lux At A Glance

Tony is the French CEO of Tony Lux Company. He offers consulting and marketing services for companies in France. Besides, Tony is the original inventor of Marketing Luxury Goods the French Way. He has worked with over 50 CEOs in the US. The tactics have worked for him as well as other brands. One tactic that stands out is making 1M euros in 40mins at a webinar, generating actual sales (not projections). Tony Lux spoke to Diplomacy & commerce Magazine on secrets to survive the recession in October 2020.

What makes Tony’s brand be ahead of the rest? Successful Luxury brands entice their buyers through emotional experiences and resonate with the target audience. This move results in consumers buying their products simply because their name or logo appears. The following are some of the things that make the Luxury brand highly profitable. 

  1. Compelling Brand Story

A powerful and emotional story is an essential component in creating a strong connection with consumers. Luxury brands have an extraordinary heritage and legacy that make a more significant passionate relationship between consumers and the brand. Having a legendary founder or character associated with the company strengthens its legitimacy and authenticity-helping bring the brand experience to life.

Coco Chanel, one of the fashion’s iconic figures, is seen by many as the embodiment of French elegance and grace. Elements of her persona are seen in Chanel’s marketing efforts, and she has come to represent the essence of sophistication, beauty, and style. Whether it is a historical or new luxury brand, the brand story must invoke a sense of distinction and superiority. 

  1. Power Of Exclusivity

Having something that others can’t easily access or acquire is the epitome of luxury. Luxury brands can enhance this exclusivity feeling in several ways, such as hosting private trunk shows, making sure products are available for a limited time, or distributing the products to select retailers only. Luxury brands that decide to mass-produce or over-distribute products to gain profit in the short term often tarnish their exclusivity brand and, ultimately, see a bottom-line decline. In the late 1990s, Burberry experienced significant backlash and low sales when it took the brand mainstream and made its products significantly more accessible. After refocusing its strategy and minimizing distribution, it has regained its position as a prestigious luxury brand. Burberry’s experience demonstrates that positioning luxury products as something that only the elite can access and afford makes the product and experience much more desirable and profitable. It is counterintuitive. 

  1. Timeless Classics

Luxury brands consistently produce products that can withstand the test of changing trends. As buying habits have slowly shifted to more online transactions, the competition has continued to be fierce. Consumers are more discerning than ever, looking for staple, and iconic pieces. The transition to online business has resulted in a more strategic and targeted online marketing approach. Luxury brands are thoughtful in their process to maintain the exclusivity factor, the pieces that will forever remain a classic. They have also embraced the customer journey at every touchpoint from the online experience to the fast shipping to high-end packaging and follow up communications.

Conclusion.

Notwithstanding the call outs faced in the Covid 19 era, you can still survive in the business competition. It calls for the implementation of strategies, tricks, and tips, to get your products profitable in the market. The following are more insights by Tony Lux from the company’s websites.