Why Most New Brands Crash (And How to Beat the Odds) Market research for luxury positioning
Imagine you launch a super cool new luxury brand like a fancy new sneaker or a next-level watch. Here’s the scary part: over 60% of new brands totally fail in the first five years! That’s because they look like everyone else.
To make it, your brand can’t just be good; it has to be totally unique. This is where Market Research for Luxury Positioning comes in. Think of it as a spy mission that helps the brand figure out:
- How to stand out from the crowd.
- How to genuinely connect with the rich buyers.
- How to keep growing for years.
The Luxury Startup’s Big Mission Market research for luxury positioning
Being a new luxury brand is like a tricky video game. You have two main goals:
Goal 1: Be Exclusive. People need to feel like they are joining a special club.
Goal 2: Be Relevant. You have to appeal to teens and young adults whose tastes change every five minutes!
This is where Market research for luxury positioning becomes your secret weapon. If a brand just guesses what people want, it will end up being boring and people will ignore it.
But here’s the cool part: the global luxury market is huge it’s going to be worth a massive €1.48 trillion! Brands just need to be super accurate about who they talk to, and Market research for luxury positioning is exactly what helps them do that.
A study by McKinsey & Company proves it: companies that use data are 23 times more likely to win new customers and build brands that stay relevant.
Listening to the Buyers: The Data Mission Market research for luxury positioning
Luxury research starts with one thing: Who are you selling to? Today’s rich customers aren’t all the same. They are different ages, live in different places, and care about different stuff. By looking at data, brands figure out what people really believe and why they buy things.
- What Buyers Care About: A Deloitte study found that 72% of super-rich people value a brand’s history and how well things are made. But, new reports show that these buyers also want new ideas and super-personal experiences. Brands have to offer both!
- Finding the Hidden Spots: Imagine a brand spots a gap in the market for fashion made only from sustainable materials or cool tech you can wear. These categories are growing super fast (up to 15% yearly!), giving new luxury brands a perfect place to start.
- New Buyers, New Rules: In places like India and Southeast Asia, 50 million more rich people will be buying luxury by 2030! These new buyers really care about being sustainable and getting true value. This means the old brand stories won’t work anymore; brands need a fresh, honest talk.
By using these facts, new brands can customise their stuff to fit exactly what people need and make their unique story even stronger.
Slicing Through the Competition
Since the luxury world isn’t growing as fast right now, being different is the ultimate key. Research helps a brand spy on its rivals figuring out their strengths, weaknesses, and what they say in their ads.
For example, old, classic brands usually talk about their long history. New startups can focus on being innovative or caring about the planet to attract younger people who think differently.
Look at Gucci: They used research to see that younger buyers wanted a bold, crazy, and unique style. Gucci totally changed their look, mixing their history with a modern vibe. Result? Their sales shot up by 35%! New brands can copy this by using data to find their own hidden opportunity.
As one expert says, “Luxury is not just about the product; it’s about the story and the experience. Research helps brands understand the deep, emotional reasons why people choose what they choose.”
Your Game Plan for a Winning Brand
If you’re launching a luxury brand, here’s what you need to do:
- Know Your Customer: Find out who your best, highest-value customers are and make your ads speak directly to them.
- Size Up the Rivals: Use research to see how you are different from every other brand out there.
- Mix All the Data: Use big surveys and small group chats/social media checks to get the full picture.
- Never Stop Watching: Keep checking new trends so your brand always stays cool and relevant.
- Turn Data into an Awesome Story: Take all those facts and turn them into a story that screams exclusivity, history, and being ahead of the curve.
Conclusion
Market research isn’t just a boring task; it’s the foundation for building a brand that people actually care about. Use data to create a story that feels special, real, and future-focused. The brands that truly understand their audience will be the ones leading the luxury world tomorrow!
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