The exact definition of a luxury brand changes depending on who you ask, but some of the common features include quality, meaning, and rarity. With that being said, luxury brands can look the same on a surface level and that can make creating a luxury brand tricky. However, there are five steps that any business can take— whether starting from the beginning or you’ve had your business for a while— to create a luxury brand.

1: Differentiation is Key

This is especially true for new entrepreneurs who are trying to start a business, but for existing businesses trying to rebrand themselves, this is also true. In order to be successful in general, you must do things differently than other businesses in your field. The steps to take to differentiate your business from others include:

● Identify your mission
● Create a positive company culture
● Define your positioning
● Capture your audience’s attention

In order to properly differentiate yourself from other businesses in your field, you must also study those businesses and take note of what they’re doing that works and what doesn’t work.

2: Exclusivity

As the root of the word suggests, exclusivity means that something is being excluded. When it comes to luxury brands and exclusivity, certain people may be excluded from purchasing the product or service, and this is usually done by setting higher prices and even having scarcity to your offerings. However, new businesses should be mindful that setting high prices can turn away potential customers, so this can’t be the only marker of exclusivity. As mentioned earlier, other markers can be quality, meaning, and rarity— and these are all necessary to have if you’re also going to include a higher price point as one of your markers for exclusivity.

3: Find Your Niche Market

All businesses, whether new or rebranding— luxury or not— must find their niche market in order to be successful. Knowing your niche market, whether it’s luxury glasses or natural skincare, can also help you with differentiation. This is going to take some extensive market research, but knowing your exact niche will help you develop a brand persona that resonates with your ideal customer.

Once you’ve identified your niche, you can become a status symbol by recognizing how influencers in your niche are using your products. You can look at some of their qualities and characteristics (if they align with your values) and create your ideal customer.

4: Promote Your Brand

Marketing is key for any type of business, and this is especially true for luxury businesses. Promotion starts with your company name and logo, and luxury brands tend to have a minimalist and neutral color scheme, as opposed to too many elements and colorful. However, this doesn’t mean that you can’t use colors. Once you’ve decided on your company name and logo, you’ll want to apply it to your website, social media channels, and even simple promotional items like pens and keychains.

Online marketing techniques such as SEO (search engine optimization), email marketing, and content marketing are some of the best ways to advertise your brand. Traditional marketing methods such as magazine and billboard ads are also effective, but they won’t reach as many people.

5: Stay Consistent

With any type of business, consistency is key with certain adjustments being made along the way. However, when it comes to luxury brands it’s even more important to stay consistent when it comes to your brand promises. Because you’re offering exclusivity (which may also include higher prices, scarcity of products, etc.), your customers are going to expect this each and every time.

Your brand promise isn’t necessarily your tagline (although it can be), but it’s the perception of how consumers see your brand. All businesses have an implied brand promise, and it’s usually related to what they do (e.g., restaurants providing both good food and service). An explicit brand promise is much more specific than other businesses in your niche may not promise their customers, and both implied and explicit brand promises must be followed through.

Keep in mind that new luxury brands can fail quicker than new nonluxury brands because customer expectation is higher. You must always strive to meet and exceed your customers’ expectations, and that comes through consistently delivering on your brand promises. Building up a luxury brand takes a lot of work, and so does maintaining it. So starting or turning an existing business into a luxury brand isn’t something that should be taken lightly.