Luxury fashion is a big business in the US, with a market extending beyond the rich and the famous. More and more people are willing to shell out big money to buy clothing and accessories that earlier seemed out of reach. If you have an entrepreneurial streak and passion for fashion, there couldn’t be a better time to start a venture in the industry.
Statistics show that the revenue in the luxury fashion sector in the US amounts to a whopping US$27.15bn in 2023. The country also tops the list in global comparison, with the per-person revenue touching US$80.64 this year.
The numbers spell incredible opportunities for startup brands looking to tap the segment. But as an entrepreneur, you cannot overlook the challenges like high startup costs and stiff competition.
Fortunately, you can still launch your luxury fashion business and create a compelling brand without breaking the bank. Let us share a few valuable insights to help entrepreneurs embark on a road to success.
Identifying a niche segment can empower your fashion brand without a massive investment. Top brands like Chanel, Gucci, Louis Vuitton, and Dior have niche markets of affluent customers. Remember to pick a segment profitable enough to help your new business sustain in the market. But it should be too narrow and competitive as you may end up struggling for visibility and market share.
For example, Giorgio Armani began by targeting ultra-high-end buyers but gradually expanded its scope with different products for slightly broader customer segments. Armani launched the Armani jeans in the American market to target fashion-seeking yet price-conscious youngsters. Smaller labels like Amor Vert, United by Blue, and Alternative Apparel ride high on the wave of sustainability.
Luxury brands offer a symbolic value to their selective consumer group that prioritizes high-status associations over the underlying price of products. Identifying a niche segment is about finding that set of buyers and devising offerings they value. It may be exclusivity, quality, or sustainability, so pay attention to the hints and get ahead by carving a niche.
Besides targeting specific audiences, building a persona for your luxury brand can do the trick without costing hefty money. Did you know that 82% of consumers prefer labels with an authentic image? Being authentic is the key to earning trust and credibility to get buyers to spend big on your high-end fashion products.
Consistency in your brand elements is the best place to start. Therefore, create a memorable logo, choose your signature colors, and decide on a tone of voice from the outset. Replicate these elements everywhere, from high-street banners to your website and social media pages. Furthermore, look for an affordable website design company to create an engaging website for your brand.
Affordable Web Design Chicago notes that new entrants in the luxury fashion segments can compete with established labels by building a robust online presence from the outset. A clean and simple website with custom design elements can be a game-changer. Also, ensure it is fast-loading and smartphone-responsive because high-end buyers expect instant gratification.
Consumer awareness is the secret sauce to branding. Gucci rides the highest on the wave of brand awareness, with 88% of online consumers in the US recognizing it. Chanel is a close second, with 84% awareness. Dior, Prada, and Louis Vuitton follow closely. Surprisingly, these brands aren’t homegrown, yet they are the most popular names in American fashion circles.
That shows what brand awareness can do even for new entrants in the industry. Thus, leveraging storytelling is the best way to build it. The great thing about the storytelling strategy is that it need not be a budget burner. Every business has a story, which can be crafted into a compelling narrative and shared with the target buyers.
For example, Ralph Laurent epitomizes the American Dream and uses the storyline to target high achievers who resonate with its heritage. Hermes highlights its exclusivity in its storyline as it follows the philosophy of “ultra-premium luxury” that isn’t easily available and affordable.
As fashion luxury brands strategize their branding moves, marketing costs remain a top concern. After all, targeting an affluent audience is about going above and beyond with your marketing moves. But you can do it without spending a fortune on your branding initiatives.
Focus on a niche segment, define a consistent persona, and create a killer storytelling plan to win in the luxury landscape. All you need to conquer the competitive industry is the right approach and strategy.