How Luxury Brands Market and What You Can Learn

As a marketer who’s familiar with the different marketing tricks brands pull, I’m good at resisting the allure of commercials. That is, until a luxury brand marketing strategy sweeps me off my feet, transforming my casual scroll into an aspirational shopping session (even if I’m just looking through the digital store window).

One moment, I’m dismissing ads. The next, I’m all in for that sleek wristwatch or captivating perfume I absolutely don’t need. Do I still put it in my shopping cart? Guilty — I admit.

That’s how good marketing works — even the strongest fall. So, in this piece, I’ll explore the top strategies from the best luxury brands worldwide and share the secrets you simply want to know.

Table of Contents

• What is luxury marketing?
• Elements of Luxury Brand Marketing
• Luxury Marketing: How it Differs from a Traditional Brands
• Luxury Marketing Strategy Examples
• What You Can Learn From Luxury Brand Marketing

What is luxury marketing?

Luxury marketing is a marketing approach that focuses on promoting high-end, premium products and services. Luxury marketing goes beyond simply highlighting product features and quality. Instead, it crafts an exclusive brand narrative that emphasizes heritage, superior craftsmanship, scarcity, and prestige.

Source

With this kind of marketing, every element — from product design and pricing to customer experience and distribution — is meticulously curated to create an aspirational image. Think Schiaparelli couture and Birkin bags.

My favorite luxury brand is Rolex, the iconic watchmaker, but I’ve always wondered why people would shell out tens, if not hundreds, of thousands of dollars on a wristwatch. It didn’t seem practical, or dare I say, necessary. There are much cheaper watches out there that look good and can tell time just fine.

(Psst: Subscribe to Masters in Marketing newsletter for weekly insights from top brands. Plus, for one week only, 100 readers can win our limited Kit!)

But one day, it dawned on me that Rolex doesn’t just sell watches; it sells a legacy of precision, exclusivity, and success. And the reason rich people buy it isn’t just because they can afford it. It’s all down to Rolex’s marketing.

The brand’s marketing strategy includes:

• Limited production runs and high price points that create a sense of scarcity and desirability.
• Marketing materials that highlight the brand’s long history, intricate craftsmanship, and dedication to precision.
• Imagery and storytelling that evoke success, achievement, and a lifestyle associated with high status.

These three things — exclusivity, heritage and craftsmanship, and emotional connection — are the bedrock of luxury marketing. They’re what helps luxury brands reinforce their image (and products) as a symbol of excellence and affluence.

Elements of Luxury Brand Marketing

Luxury brand marketing is carefully orchestrated to build an elite image. Here’s an in-depth look at the strategy.

1. Target Audience

Luxury brands are expensive. I’ll talk about pricing soon, but when these brands make their products, they don’t try to sell them to the average person. Instead, they zero in on a niche subset of people who value exclusivity, quality, and an aspirational lifestyle.

Every time I watch a luxury ad, I’m always struck by how they speak directly to people who see value in exclusivity. These folks are willing to invest in a lifestyle rather than just a product.

Rather than simply segmenting by age, income, or location (as in regular marketing), these brands focus more on psychographics. They seek to understand the lifestyle, aspirations, and emotional drivers of their consumers, who are typically well-educated, affluent, and culturally discerning.

Their target audience determines the kinds of products these brands create and the media through which they market those products.

2. Brand Heritage and Storytelling

Luxury brands, like Hermes and Chanel, were often established decades (or over a century) ago. They lean on a rich history and compelling narratives to set themselves apart. These stories about origin, product evolution, craftsmanship, or cultural significance help create a deep emotional connection with the audience.

The narrative explains not just what the product is but why it matters in a broader context. I think this element is particularly effective because it transforms a simple purchase into an experience steeped in tradition and meaning, making the consumer feel a part of something timeless.

For example, on LVMH’s website, there’s a section that describes how Hubert de Givenchy built the Givenchy Maison by predicting the “casual chic and democratization of luxury that would leave its mark on the 20th century.”

So, when you buy a dress from the house of Givenchy, you’re partaking in Hubert’s genius. It’s not just a dress anymore. It’s prestige.

3. Exclusivity and Scarcity

While the exact number of bags it produces every year remains a closely guarded secret, Hermes ensures that the number of Birkin bags available is always less than the demand. That’s why the bags are so expensive and have a high resale value.

In fact, there used to be a waiting list that people had to join before they could own one of these highly sought-after bags. Now, Hermes has scrapped the waiting list and made the process of getting a Birkin even more nuanced.

Hermes, however, isn’t the only luxury brand that does this; most luxury brands make their products scarce and exclusive on purpose.

Scarcity drives desirability. When items are hard to come by, they often seem more valuable and coveted. By limiting product availability or crafting unique, bespoke offerings, brands ensure that their customers feel privileged to own something few others do.

4. Product Quality and Craftsmanship

At the core of every luxury brand is an unwavering commitment to quality and craftsmanship. For example, Patek Philippe prides itself on assembling all its wristwatches by hand. And, in 2019, haute couture designer Elie Saab and his team spent 800 hours making a wedding dress.

With luxury brands, every detail of a product is meticulously designed and executed, often by artisans who have honed their skills over years of dedicated practice. This dedication to superior quality ensures that each product is not only functional but also a work of art.

This craftsmanship helps these brands justify the premium price they charge, as it reassures customers that they’re investing in a product with lasting value and timeless appeal.

5. Strategic Pricing

The most alluring Rolex watch (to me) is the Day-Date 36, and it costs $117,250. While researching this article, I also found a stunning Birkin that costs $499,500.

It may seem like these brands are blindly pulling large numbers from thin air and sticking them onto their products, but that’s not the case. Pricing in the luxury market isn’t merely about setting a high cost — it’s a strategic tool that reinforces brand prestige.

High prices convey rarity, exceptional quality, and a sense of exclusivity, effectively positioning the product in a way that differentiates it from mass-market alternatives. Beyond that, target audiences perceive higher prices as indicative of superior craftsmanship and enduring value, so they’d be willing to buy.

6. Digital and Social Media Strategy

Before social media, luxury brands promoted their products through traditional channels. That includes print advertisements in high-end magazines, television commercials, exclusive events, direct mail campaigns, and carefully curated in-store experiences.

Now that over 5 billion people use social media, luxury brands must also craft a sophisticated online presence that mirrors their high-end offline image. These brands often use platforms like Instagram and YouTube to share behind-the-scenes looks, detailed craftsmanship processes, and exclusive previews. They also share pictures of celebrities wearing their looks and new collections from runway shows.

Source

As with their physical marketing, they don’t really look for likes and comments. Instead, they employ social media and other digital channels with precision, focusing on quality content that aligns with the brand’s refined image.

7. Partnerships and Collaborations

Luxury brands have increasingly embraced collaborations with prominent figures to drive buzz, appeal to younger audiences, and blend fashion with broader cultural trends.

For example, Dior recently made Rihanna the face of its new J’Adore fragrance. Brands like Gucci and Balmain have collaborated with pop culture icons like Harry Styles, Nicki Minaj, and Gigi Hadid, all of whom are popular with the younger generation.

By collaborating with renowned artists, celebrities, designers, or other high-end brands, luxury companies not only expand their reach but also deepen the layers of prestige and cultural cachet that are associated with their products.

8. Forward-Thinking Technological Innovation

Remember how Hubert de Givenchy predicted the casual chic fashion style that eventually became ubiquitous in the 20th century? That kind of innovation is still happening with luxury brands. In fact, I doubt that these brands would enjoy the longevity they currently have if they hadn’t been forward-thinking.

These days, luxury brands are tapping into cutting-edge technologies like immersive VR and AR experiences, as well as venturing into the metaverse. I think this is a great way to help younger, tech-savvy consumers experience luxury in ways that were once unimaginable.

For instance, virtual reality can transport someone to a digital replica of a high-end boutique, where they can explore collections in a three-dimensional space, try on products virtually, and even attend exclusive virtual events.

Luxury brands also use augmented reality, which blends the digital and physical worlds, to improve the shopping experience by enabling customers to visualize products in real-world settings before making a purchase. Imagine pointing your phone at your living room and instantly seeing how a luxury watch or piece of fine art would look in your space.

The metaverse is another frontier that allows a luxury brand to host virtual fashion shows, interactive product launches, and even collaborative events with digital artists or influencers.

These innovative ventures provide a platform for storytelling that resonates deeply with younger consumers who value experiences and connectivity as much as, if not more than, traditional product attributes.

Luxury Marketing: How it Differs from a Traditional Brands

There’s a lot that goes into putting a luxury brand marketing strategy together. If you’re wondering how this process differs from a traditional brand marketing strategy, here’s a table breaking down the differences.

Luxury Marketing Strategy Examples

Top luxury brands understand that customers seek more than a product. It’s about making you feel sophisticated, high-class, and part of something big.

I’ve researched seven popular brands and selected some of their best strategies to help you understand how luxury brands market. Let’s get started.

Louis Vuitton — Strategic Collaborations

Besides its fancy stores with shiny fronts, Louis Vuitton is super active on social media. They love teaming up with celebs. This makes their stuff even more desired because, well, if celebs wear it, you know it’s cool.

For instance, check this collaboration with Belgian rapper Hamza Saucegod and Pharell:

Source

LV’s collections are also often inspired by celebrities. One standout example is Virgil Abloh’s Men’s Fall Winter Collection — a tribute to Michael Jackson. Here’s how the stunning fusion of fashion and music iconography looked:

Source

Louis Vuitton strategically chooses celebrities to align with its brand values, create a global appeal, tell a compelling story, and connect with a diverse audience. That’s present in their ads, too.

In one of his YouTube videos, Markademics Founder Viktor Stoilov dissects an LV ad featuring four famous actresses. “Louis Vuitton is special, and you need to understand it through the concept of four lifestyles, four buyer personas, four people that are representing this in a perfect way,” says Stoilov.

According to Stoilov, Louis Vuitton reminds buyers that they make luxurious products you can use off the runway. Their fits or bags are part of a luxurious, cosmopolitan lifestyle.

“It’s not a studio. It’s not flashy. It’s not something super complex. No, it’s the streets of Paris, the galleries of Paris, driving your retro car around Paris, being this badass woman, or just walking around and thinking about life and time,” says Stoilov.

What I like: Besides innovative and strategic collaborations, Louis Vuitton’s secret weapon is its iconic monogram from 1858. You’ll find this same pattern on their products even 160 years later.

Source

And no, it’s not just a random design choice — it’s a wise move in their brand strategy. This consistent use across bags, wallets, and clothes has created a timeless identity and made LV products instantly recognizable.

Gucci — Forging New Realities

In early 2024, Gucci premiered its brand-new documentary, Who is Sabato De Sarno? A Gucci Story. The documentary provided a glimpse into how Sabato De Sarno, Gucci’s new creative director, created the Gucci Ancora show — his first collection for the mega fashion house.

However, the mega fashion house didn’t want to merely release it on YouTube. The brand wanted to offer its viewers a thoroughly immersive experience. What better way to do that than to make the documentary accessible only through the Gucci App on the buzzing new Apple Vision Pro?

Source

Apple’s newest virtual reality goggles transported people into the documentary, so to speak. The Vision Pro allowed them to witness key moments come to life, like the arrival of an iconic Milanese tram and a viewing of the new Gucci Jackie Notte bag introduced by De Sarno.

“Gucci’s commitment to the Vision Pro is the latest move in a long-term strategy to position the brand at the forefront of technological innovation, specifically augmented reality, that has been underway since 2019,” wrote Alex Levin, an arts and design contributor at Forbes.

Alex Levin posits that Gucci’s foray into spatial computing and the creation of the Apple Vision Pro Travel Case “signify Gucci’s role in pioneering the confluence of fashion and digital innovation.”

What I like: With the Apple Vision Pro, Gucci was able to give viewers the opportunity to interact closely with both the story and De Sarno’s creations. People could examine Gucci’s products in 3D from different perspectives while experiencing both mixed reality and full immersion.

Porsche — More Than Showroom

Porsche breaks free from traditional advertising molds by immersing customers in experiential marketing. The Porsche Experience Centers, where customers test their driving skills, redefine the car-buying journey. It’s not just a purchase; it’s an adventure.

Beyond that, Porsche’s museums are more than static displays — they’re living testaments.

The Porsche Museum in Stuttgart bridges the historic and the modern. It showcases a brand narrative that has evolved over time.

Source

Then, there are events like the Rennsport Reunion that serve as community builders. Porsche dismantles barriers, welcoming every attendee into the Porsche family. No velvet ropes — just a shared passion for the brand.

At The Gathering event in 2019, Scott Baker, Porsche’s Marketing Communications Director, explained this point perfectly. Baker reports that the brand had 120 people working in various departments at the Porsche event.

“And these are people from human resources, from legal; they work in finance. And here they’re mingling with our drivers, our owners; they’re chaperoning people up to the top of the corkscrew so they could be at the racetrack from another vantage point,” says Baker.

At the event, Porsche reinforces that anyone can connect with the brand.

“They might work on financial spreadsheets all day long, but they get to experience this, and it really gives them an appreciation for the bigger thing that they’re really working towards every day,” Baker says.

What I like: While others focus on glossy ads, Porsche crafts lasting connections by immersing customers in its brand story.

Lamborghini — Selling the Experience

Why don’t we see Lamborghini in a TV commercial? Because the brand has an exclusive niche market, the company knows it’s not cost-effective to show such cars to a broad audience when only a few can afford them.

So, what is Lamborghini's luxury brand marketing strategy? The Lambo team focuses on continuously improving its products and creating exclusive offers to attract customers.

“It’s necessary to continue this path of growth with products that are more and more attractive to the market but that at the same time also have higher margins,” says Paolo Poma, chief financial officer and managing director of Automobili Lamborghini.

One of these exclusive offers is Lamborghini Winter Academy, where car enthusiasts can learn to drive a Lamborghini in the snowy Alps.

Since 2012, Lamborghini’s Esperienza Accademia Neve in Livigno has been a go-to for on-ice driving courses.

This three-day program, guided by expert instructors, teaches participants how to handle Lamborghini cars in low-grip situations. The package also includes a stay at the luxurious hotel.

Source

What I like: The brand built an educational and experiential event. Why? Because it evokes people’s passion for something. Lamborghini gives people incredible experiences at their academy, turning them into potential car buyers.

Rolex — Old School, But It Works

Unlike Lamborghini, Rolex does things a bit differently. They don’t shy away from TV commercials. Instead, they use them smartly and team up with famous people.

Rolex makes TV commercials you might see during significant sports events or on channels like CNN and ESPN. In these ads, you’ll spot celebrities wearing Rolex watches. For instance, the partnership between Rolex and tennis began in 1978 at Wimbledon.

Rolex is now part of major tennis events, including Grand Slam® tournaments and international competitions.

Source

The brand supports big stars like Carlos Alcaraz and Iga Swiatek and nurtures young talent, contributing to the sport’s growth.

I love how James D. Roumeliotis, author and strategic advisor, explains Rolex’s marketing. He writes, “Rolex promotes itself as a predominantly high-end luxury brand that is the ultimate aspiration of the consumer … a fashionable alternative to using a cell phone to tell time and a status symbol.”

What I like: Rolex’s marketing strategy revolves around being in the right place and time. That’s how they gained popularity in the past, and today, they continue following the same path to maintain their reputation as the best watches in the world.

Cartier — Following the Trends

Speaking of watches and jewelry, one particular Cartier campaign stands out prominently in my memory — Clash de Cartier with Lily Collins, a.k.a. Emily in Paris.

Emily in Paris is this huge show that drew in about 58 million households for its first series. The latest series scored an incredible 1.4 billion streaming minutes in just the first five days.

Using Lily Collins’ popularity was a genius idea, considering her massive fan base. Even a short YouTube video with her got over 12 million views, proving this collaboration was a hit.

This campaign blends classic and edgy styles. The focus is on words like “independent, elegant, and instantly recognizable.” But how did the brand make itself more attractive with this campaign?

Amirah Keaton from Luxury Daily perfectly captured it in just two sentences.

“The brand’s campaign concept involves two versions of Ms. Collins, representative of the balancing act that envelops the styles she wears,” she writes. “The split is where the label has determined that an appeal lies, as in the age of access, a step in the direction of duality, one which empowers an owner with choice, is welcome.”

What I like: Cartier hit the marketing jackpot by teaming up with the most stylish Netflix icon. Featuring two versions of the same person is like saying, “Hey, differences are cool!” It fits right into our age, where people celebrate diversity more than ever.

Prada — Into the Metaverse

In June 2022, Prada launched its Timecapsule NFT program, a digital evolution of the brand’s physical Timecapsule program, which it debuted in 2019. This NFT (non-fungible tokens) program is a Web3 initiative that seamlessly blends Prada’s heritage and the latest blockchain technologies.

The Timecapsule NFT program operates by releasing limited-edition physical items (usually shirts or jackets) every month. These physical pieces are linked to a unique, corresponding NFT that is gifted to whoever buys them.

Source

This NFT provides the buyer exclusive access to events and experiences for NFT holders in the Prada community (Prada Crypted). These perks include invitations to fashion shows all over the world, private walkthroughs of runway collections, luxury accommodations, styling appointments, and dinner at the Prada-owned Marchesi restaurant.

The brand keeps on iterating on these drops and introducing new perks for holders, and all their drops so far have sold out.

Why I like it: I love how the Timecapsule NFT program marries limited-run physical fashion (a longstanding Prada hallmark) with one-of-a-kind digital assets. It also builds a collector’s ecosystem around Prada fans, which strengthens brand loyalty more than just running a single campaign.

What You Can Learn From Luxury Brand Marketing

Now that I’ve covered the top strategies from popular luxury brands, here are three juicy tips inspired by their approaches that you can add to your brand strategy.

1. Collaborate with influential figures.

Luxury brands like Louis Vuitton showcase the power of strategic collaborations with celebrities. This adds allure to the products and creates a sense of exclusivity and desirability.

Every brand should find the right famous person to collaborate with. And no, those do not have to be Angelina Jolie or Will Smith. I suggest collaborating with micro-influencers on Instagram or TikTok for better reach and brand boost, which is especially needed initially.

According to our research, 33% of Gen Z purchases are based on an influencer’s recommendation.

2. Accept digital innovation.

Prada’s entry into the metaverse should inspire everyone. It shows that the brand understands what today’s consumers like. So, don’t turn your back on digital tech and virtual experiences.

Yes, “in-person” events might be better, but if you want to connect with a younger audience and stay up-to-date, you simply need to give it a chance.

P.S. Talking about digital innovation, don’t handle marketing campaigns manually anymore. Instead, automate your marketing using HubSpot software, powered by CRM data.

Automate campaigns with workflows and bots so you can automatically handle tasks like emails and forms. You can also expand to SMS and in-product marketing.

Source

3. Create memorable experiences and evoke emotions.

Learn from the playbooks of Porsche and Lamborghini — get into experiential marketing. Give your customers something valuable, something they won’t easily forget. You can choose different events, webinars, or whatever aligns with your business.

Find your way to customers’ hearts. It’s about what they want, not just what they need. Luxury brands show people buy from desire, not necessity. Ensure your message resonates.

Let’s move from B2C and see how B2B can steal luxury marketing strategies.

In the Real World

I took Adobe as a perfect B2B example because it recently used two of the strategies I’ve just discussed.

Let’s look at Adobe Summit. With a lineup of over 200 in-person sessions covering analytics, B2B marketing, and personalized omnichannel engagement, the summit provides a fantastic learning experience.

This approach closely aligns with Porsche’s and Lamborghini’s experiential strategies. Attendees are not just passive participants. They actively learn, engage, and share opinions.

Source

Secondly, Adobe leans into partnerships with influencers. To extend brand awareness for their Analytics Portfolio, Adobe targeted B2B marketers in the EMEA region across 900 accounts. TopRank Marketing identified influencers relevant to their audience.

Then, they crafted content that resulted in a remarkable 2x engagement boost compared to other Adobe campaigns.

Katrina Neal, Adobe’s Data and Analytics Strategist, shared her thoughts on this strategy:

Source

As a team, influencers brought the desired results for Adobe — increased reach, interest, and engagement.

Use Smart Marketing to Keep People Interested

I used to think those sky-high price tags attached to luxury products were mostly about inflating status. But as I wrapped up this piece, I realized the inverse is true: the painstaking precision and artistry behind each piece justifies what seems like an outrageous cost. It’s not just a marketing gimmick — it’s genuine craftsmanship that makes these brands shine.

Sure, the VIP parties and glossy campaigns still dazzle, but I’ve learned that luxury brand marketing isn’t about sticking to one big, flashy approach. It’s about balancing old-school charm with fresh ideas — and, most importantly, matching craftsmanship to real customer desires.

That mix of authenticity, innovation, and quality is what truly sets these brands apart (and maybe explains why we can’t resist them).

Editor's note: This post was originally published in February 2024 and has been updated for comprehensiveness.