What Makes a Brand Luxury? 

What makes a luxury brand? What sets a brand apart and makes it “luxury”? Successfully creating and maintaining a luxury brand identity relies on several factors. And to reach luxury status a brand needs to sell these factors to its consumers. Selling a brand to consumers on these factors is just as important as selling a luxury product itself.

What is Luxury?

While some may think of luxury as expensive or overpriced, this is incorrect. Luxury goods are indeed expensive, or relatively more expensive than non-luxury goods. But they are defined by more than just their price. Luxury brands sell a collection of luxury goods. And the goods and brands have a set of characteristics that define them. Although these characteristics will vary from one definition to another, they are generally considered: price, quality and craftsmanship, beauty of the design, symbolic value, accessibility, and high-end customer service. 

Below we touch on each of these factors that solidify a luxury brand identity:

1. Price

Luxury brands generally have a premium price tag. But not all expensive goods are luxury goods. They may just be overpriced. You have to look beyond the price tag to determine if a product or a brand has luxury status. The factors below will help determine if a brand is luxury or overpriced.

2. High Quality and Craftsmanship

Quality and craftsmanship are synonymous with luxury goods. And quality is typically standard across the entire product line of luxury brands. Not only are the goods made from higher-quality materials, but they are typically crafted by artisans and craftsmen who use extreme care and dedication. A luxury consumer should be able to recognize this quality and craftsmanship while experiencing the product. If the “quality” is only a marketing gimmick, the brand will not be considered luxury for long. 

3. The Beauty of the Design 

Look at a luxury product and you may be in awe. They resonate with beauty and catch attention even if you don’t know they are a luxury brand at first. Luxury goods scream quality. The design is unique and sophisticated. 

4. Symbolic Value

A luxury consumer is drawn to luxury items and luxury brands because they have symbolic value and meaning. For individuals who want to be seen as leading a successful lifestyle luxury goods provide them with the sense of status and identity that they crave. Buying luxury products helps them capture the symbolic value of the exclusivity, lifestyle, and status that goes along with owning them. 

Brands achieve this reputation and meaning through creating a luxury brand story. This is a narrative that includes the brand history, meaning, values, brand identity, and more. 

5. Accessibility & Rarity

Mass-produced goods are hardly ever luxury goods. They may be attractive and well-made products, but not luxury goods. Even those luxury goods sold in department stores are in limited supply. The rarity of these goods is one factor that sets them apart from even well-made, mass-produced goods. And it is a factor that makes them more valuable, more exclusive, and more desired. 

For instance, try walking into a Rolex-authorized dealer in 2023 and buying a watch the same day. Their demand far outweighs their supply, which has resulted in a large shortage of Rolex watches and a waiting list of eager buyers miles long. 

6. Exceptional Service

Lastly, all luxury brands have exceptional service. The service these brands provide to customers has to match the exceptional quality of their products. This is seen as the luxury experience, It is continuous, positive interactions and unexpected experiences that create this level of service. And it is this level of service that sets the brand apart in the eyes of luxury consumers. This exceptional service creates a solid, positive relationship. It also builds brand loyalty and increases customer retention.