Premium vs luxury
It’s worth noting there is a difference between a premium and a luxury brand. The key difference here is that a luxury brand, in order to remain luxury, has to have limits on volume of sales. By its nature it can’t be accessible to everyone. Premium on the other hand, can still enjoy large sales figures at an over average rate. A brand can’t become Premium just because they say it’s so, Premium has to be justified. Customers will pay a premium because it is better quality, or materials, or service, or process. With luxury it’s much more about perception and trust, or rather, faith.
Luxury doesn’t compare itself to the competition. Each brand has its own luxury status, it is its own glorious entity. Comparing it to competitors puts it in competition, when nothing can compete. These brands don’t explain why they are desirable, they have no need to define themselves or what makes them special. Luxury is desirable because it is luxury. In that, the price becomes part of the appeal. The higher cost luxury brands demand limits availability to the few, only increasing the desire to the many.
When developing a new product or refining a brand it’s important to consider which camp to fall into. Creating a luxury brand is not an easy task, it requires the creation of the perception of luxury alongside the development of a quality product. It requires asking customers to take a leap of faith, which is often only possible when they can see others have taken the leap before them. Creating or elevating a brand to a premium level similarly requires work to create a consistent, reliable, and above average quality product with a solid reputation for both the product and customer service, along with a clear brand message and synergy across all marketing to create a recognisable, clearly defined brand image. This is more quantifiable, and therefore more attainable, but requires a well run offering across the board to pull off, and can’t demand the lofty price tag associated with luxury. But hey, these things are achievable. Pick a lane, and get to work.