A few years back, when recession was all over the news, Forbes informed, that in preceding years there had been a steady 8% increase in the number
of wealthy people. That is quite surprising, but the conclusions are even more important for e-commerce.
So-called top-shelf products are not only of much higher quality than the ones available in popular hypermarkets, but they are also held in great esteem due to the brand name or current fashion. Prestige is very important in this case. So, our desires have a price tag, too. Sometimes, an exclusive product is a way to boost our mood. Buying a luxury good may fulfill a dream from our youth. According to the website Polityka.pl, demand for luxury goods (on a global scale) increases three times faster than world economy grows.
Here are some tips on how to use this knowledge for your e-store:
- Your software should work flawlessly. Dissatisfaction of your clients may result in decreased revenue. Loss of trust in your brand also poses a threat.
- Selling luxury goods on the Internet may be more profitable than in traditional store. The costs of setting up and maintaining a physical store do not apply.
- Prestige is what counts. It is not enough anymore that you can buy almost anything; more wealthy clients want to achieve higher social status with unique, designer goods.
- You should ensure building long term relationships, because luxury clients expect appropriate level of service.
- If you want to sell luxury goods you need to constantly add to your offer brand new, top-of-the-line products, which means following closely all new trends and novelties in a given market sector.
- Running this kind of store, you increase the probability, that by sending a newsletter with current developments, you provide your clients with useful information about
a product, and manage to convince them that it is worth investing in.
- You need to pay special attention to recognizing your client needs and preparing appropriate offer.
- Loyalty to your clients increases the likelihood of regular purchases in your store.
- Intangible assets like prestige of luxury brand are also important, that’s why it is worth enhancing this aspect in your offer.
- The packaging matters. It may be a decisive argument for a demanding client (e.g. designer boxes). It may very well be that a prospective client is visiting your store looking for an attractive gift – you should consider placing a gift offer on your home page.
- Success of this kind of stores stems mainly from their scarcity – to own one, you need to pay more.
- Investment in luxury goods is an investment in one’s image – it is a way of achieving specific goals, e.g. being included in a social group.
Transactions resulting from promoting affiliate programs for luxury goods do not happen very often, but they are definitely worth the effort and patience.
Market research shows that on the Internet, jewelry sells especially well.