First of all, this will come down to branding and how you wish to position yourself relative to the vertical (niche) you wish to operate in. Things such as market research do help to a certain extent but it will also come down to what that luxury item is.
For instance; in the sense of luxury watches or jewellery, the brand will play a greater role owing to the provenance, and the target market who wish to pay/acquire those particular items will put more weight into the brands carried as a way to validate the brand of the place that stocks those particular items.
This leads to the secondary consideration is the particular clientele you wish to approach. You'll notice that in the areas regarding luxury you might find two major categories; sellers who wish to offer the absolute lowest price for luxury items thereby making them more accessible, or those that offer more of the concierge service and charge accordingly. In both cases, you will be able to tailor your approach from your presentation, stock levels/selection, pricing, features (things that you want to stand out on against your competitors), and overall service delivery which makes your marketing and sales channels much easier to select and focus on.
Once you have a clear idea of those basic questions, the next stages become much simpler as you aren't trying to answer HOW to make money, you're answering the question of WHO are you going to make money off.
Ultimately; your clientele and business model can be profitable if managed properly and if you keep that in mind; a marketing strategy can be made that is actionable and sustainable.
If you wish, happy to talk more and provide more detail should you have more follow-up questions.
Answered 2 years ago
Hi , Firstly What do you mean by Money - is it the profitability that you are worried about or Top line ( increasing Sales) ?
If it's the first (profitability) then you need to make sure that aspiration of the brand needs to be higher than it's actual use wherein delivering customer ecstasy , which would result in you charging the consumer's the right price for the product which takes care of cost's and leaves profit's for you. Easy way of doing this is which doing the pricing of the product put a multiple on the cost to arrive at price which is value for money for the consumer but at same time resulting in profits.
If it is the Second (Top line) then you need the below steps.
1. Develop all online retail channels like registering & trading on Luxury E-com portals , social media market places like FB Shop , Insta Shop etc , your own Ecom Website or subscription based services.
2. Refresh your assortment on frequent basis and ensure good balance of Width & depth.
3. Use discounted channels to liquidate your non sellers / old merchandise and much more
Hope you found the information useful !!
For more info on this and strategies we can always get on call.
Answered 2 years ago
To make money in the Online Luxury Market you need to keep the following points in mind:
1. Getting into The Market of Luxury Goods: It is proven that in the market for luxury goods lies a bigger opportunity to make more money. The latest statistics show that the luxury goods market now counts US$285,137m. Furthermore, it is anticipated to grow by 6.4% annually. This data puts luxury products in a superior position as compared to low-cost merchandise. This is the reason why many store owners are looking into the solution of switching to selling luxury items. If they try to sell low-quality products at higher prices, they could risk losing their customers’ trust. On the other hand, supplying the store with different types of products that will bring freshness to the store could be a game-changer. For those passionate to earn bigger profits in the eCommerce industry, selling luxury items is the right choice. To emphasize, it is easier to buy and resell low-cost merchandise. But, at the same time, selling luxury items online, is also doable and more profitable. It requires a more focused approach and demands a proper strategy; however, it is not a complex job.
2. What Are Considered Luxury Goods: Here is a simple definition of the term. Luxury goods are often used synonymously with superior goods. In contrast with necessity goods, luxury goods are typically more costly. For example, classic luxury goods include high-end clothing, accessories, or luggage. In short, learning how to sell luxury goods is a very lucrative business, and for a very simple reason. Certain individuals appreciate the value of superior quality, particularly when it comes to clothing brands. These individuals often pay a lot to dress and look nice. They belong to a group of individuals with higher disposable income. If you want to make bigger money, selling luxury fashion items online is a good idea. Your target customers would be the people who buy this type of clothing. Under the category of luxury clothing and accessories fall items from renowned fashion houses and top selling brands.
3. Create an Online Store: The first thing every seller needs to do is create an online store. Today, the eCommerce world is modernized to the point where there is a myriad of platforms where you can create your own store in a heartbeat. eCommerce platforms such as Shopify, BigCommerce, and WooCommerce are ones who offer easy and simple solutions. Ultimately, whichever platform you choose, you can start building your store for selling luxury clothing within minutes.
4. Define Your Target Customers: After establishing your store, an important question arises – to whom will you sell your luxury goods? As we mentioned before, luxury goods are mostly bought by individuals with bigger pockets. People with refined taste in clothing, knowing what to buy and wear, will be interested in your store. Also, you will have to define the average age of your shoppers. It is most likely to include ‘Gen X’ shoppers, or the ‘ages 36-52‘category. This includes successful entrepreneurs, lawyers, doctors, investors, real estate agents, and other well-paid jobs. People of these ages often spend a lot on designer clothes because of their high income and pensions, as well as higher social status. Although the most active category online, most millennials (ages 18-35) do not have the financial power of buying luxury items online. The fact is, most of them have only started building steady careers and try to follow the path to success. Still, do not be surprised if you find many millennials buying your products. They often take short-term loans and credit cards to satisfy their desire for quality branded clothes.
5. Find Suppliers of Luxury Goods: Finding a luxury clothes supplier with a good reputation is not a simple task. But once you spot it and make a deal with one, you will start noticing its positive influence on your business. The thing is, it is not enough to just sell luxury clothing in your store, you need to find a supplier who will support you every step of the way. Choosing a supplier that is known for its premium services and support will lead you on the right path to achieving major success.
Talking about trustworthy suppliers, a tricky thing in this business is product authenticity. How to prove if the items you sell are authentic? The exposure to counterfeit goods in the luxury market is quite common. This is the reason why it is only natural that a customer may demand proof of authenticity for a product. If you somehow give out the impression that your products are fake, your customers might request documentation to verify their authenticity. Hence, when entering the market of selling luxury goods online, you should look for a reliable supplier that will sell your products in their original packaging, hangtags, labels, and barcodes. This is the most adequate way to ensure product authenticity. This is essential not only for your customers but for you as well if you want to stand out from the crowd as a genuine seller of luxury items. There are cases in which people claim to have received fake clothing, otherwise paid for as authentic designer clothes. This is something that you must not allow yourself to experience.
6. Promoting Your Luxury Items: Regardless if you supply your online store with premium luxury items from a reputable supplier, you won’t accomplish much unless you start promoting your store. eCommerce marketing is of crucial importance if you want to reap the benefits of the eCommerce industry. Social media channels are one way of connecting your store to new audiences to sell luxury goods online. Promoting your brand on social media is one of the most economical ways to do it. Social media is the new “word of mouth”. Remember, you are the curator of your content in this age of the “curation generation” so make sure you have a distinctive voice and recognizable content so once the customer sees it they know it’s you. Even though social media marketing is an economical way to promote your business, it is not a very frivolous job. It is time-consuming and it requires some digital marketing skills. If poorly done, at best, there will not be results from social media. On the contrary, if done properly, social media could help you build a strong relationship with your customers and increase your revenue.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
Answered 2 years ago